NIGERIA: Jonathan Administration Remove Fuel Subsidies as NLC, TUC Call for Strikes

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Submitted by IQ4News on Mon, 02/01/2012 - 1:28pm

President Goodluck Jonathan’s administration has scrapped fuel subsidies despite protest by Nigerians.

By Yemisi Akinbobola

The removal of the subsidies, which account for about 25% of government’s annual spending of 4.8 trillion naira, was also rejected by the House of Representatives in 2011, describing the move as “premature”.

However, the government insists that the subsidy removal will help save 1.2 trillion naira ($7.5 billion), which will contribute to the funding of infrastructural developments, such as power plants and roads.

The removal will mean that Nigerians will pay an average of N140 per litre instead of the previous average of N65.

In a statement released by the Petroleum Products Pricing Regulatory Agency (PPPRA), the agency said that it would “ensure that consumers are not taken advantage of in any form or in any way.

“The DPR will ensure that the interest of the consumer in terms of quality of products is guaranteed at all times and in line with international best practice.

“In the coming weeks, the PPPRA will engage stakeholders in further consultation to ensure the continuation of this exercise in a hitch-free manner.”

NLC, TUC Call for Strike

The Nigeria Labour Congress and the Trade Union Congress, along with the pro-people civil society organizations and patriotic professional organisations also released a statement describing the move as “tragic”, and a “callous, insensitive” new year’s gift from the president.

“The Jonathan Government has become the greatest source of insecurity in the country and the spring of danger to the Nigerian nation”, continues the statement which also called for “the populace to begin immediate mobilization towards the d-day for the commencement of the strikes, street demonstrations and mass protests across the country”.

“We direct our state councils and unions to take steps to resist any price above N65 litre of PMS, and await a date for the commencement of general strikes and mass protests across the country.

“Similarly, we alert the populace to begin immediate mobilization towards the d-day for the commencement of the strikes, street demonstrations and mass protests across the country”.

The Cost of Subsidy

Since 2006, around 3.65 trillion naira has been paid by Nigeria in domestic fuel subsidies. According to the PPPRA, more than a third of this was spent in 2011.

Despite Nigeria’s status as a leading oil producer, 70% of its fuel products are imported due largely to a lack of adequate refining capacity.

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#1 I think removing of the fuel

Submitted by Nwabueze uche (not verified) on Thu, 05/01/2012 - 8:22pm.

I think removing of the fuel subsidy is a good idea,because we all will benefit from it in a long run,we all will suffer for it now but the future matters.