Opinion
The Many Holes In Deregulation
The timing of the recent removal or call it partial
removal of subsidy on fuel by the Federal Government last Wednesday is not my major concern. Worrisome, however, is the process. Why and how did we get to where we are?
Subsidy to a lay man is that amount which the government pays or takes care of in order to bring down the cost price of an essential commodity or service aimed at giving the citizenry a leverage.
Subsidy is a global practice, an economic theory designed to stimulate economic development. Therefore, subsidy cannot and should not be regarded as welfarism for any reason.
The recent increase in the price of premium motor spirits (PMS) from N80.50 to N145.00 comes as a bitter pill as well as a punitive measure to Nigerian masses who always fall victim of every government ‘s policy.
When you say or do the right thing the wrong way, it amounts to insult, insincerity, and insensitivity. It smacks of deception and lacks cohesion in terms of motive.
To the man on the street, the low income earner and the man whose salary has remained stagnant in the face of all these price increases, the new fuel price regime is insensitive.
Barely one year ago, President Muhammadu Buhari told Nigerians that he knew nothing about the existing subsidy on fuel. He further said, if at all such exists, it would be foolhardy to think of removing it, noting that any hike in price of fuel would virtually affect prices of every other commodity and service.
To buttress this point, a leading member of his campaign team and current Governor of Kaduna State, Nasir el Rufai, was quoted as having said that Buhari would only “clean up the subsidy system, catch all the subsidy thieves and send them to jail”.
As it has come to be, President Buhari has admitted that there’s actually subsidy on fuel, but has not only failed to catch the subsidy thieves but has gone ahead to renege on his promise of not removing fuel subsidy. Doing so without any consultation is even the highest level of impunity.
Even if we agree that deregulation of the downstream sector has its own benefits, did the Federal Government think of the negative effects the deregulation policy will have on ordinary Nigerians?
On assumption of office, the Minister of State for Petroleum, Dr Ibe Kachikwu, told Nigerians that he was earlier informed that Nigerians consumes between 50-55 million litres of premium motor spirit. But a thorough check confirmed to him that Nigerians only consumed about 45 million litres per day. This shows that about 10 million litres were being diverted daily. Quite a huge amount being stolen!
But then what has the Presidency and the Petroleum Ministry done to bring the oil thieves to book? Must the government always shift its policies to suit those in power not considering the plight of the ordinary Nigerians? Must the government take only the blood of the ordinary Nigerians and the tears of the low income group to fix our dwindling economy?
Till date, the United Arab Emirate still spends about $250 million annually on fuel subsidy. If Abuja can rise to 50% development level of Dubai, we’ll be close to heaven. So, I don’t think it is the subsidy that is crippling our development but corruption
The NNPC that sources its forex at CBN sells at N145 and tells independent marketers to sell between N135 and N145. How feasible is that? How can a businessman source forex from secondary sources and come back to sell at government price?
Some argue that as time goes on, market forces would crash the price of fuel. May be. But we should remember that it took some years before the prices of the telecommunication (GSM) came down. Besides, telecommunication is not as essential as the entire economy.
It is on the same premise that I faulted former President Goodluck Jonathan’s 2012 move in that direction. Even then, Jonathan put some cushioning measures in place before he made the move.
Sure-P projects, though was marred by corruption, was one of the few palliative measures put in place by the Jonathan government. Why can’t the present administration do same?
Nneka Amaechi-Nnadi
Opinion
Time and Season Can Tell
Opinion
Why Adaeze Deserves A Second Chance
Opinion
Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
-
Politics4 days agoAPC Releases Adjusted Timetable For Nationwide Congresses, Convention
-
Sports1 day ago2026 WC: Nigeria, DR Congo Awaits FIFA Verdict Today
-
Sports4 days ago
DG NIS Wants NSC Board Constituted, Seeks Increased In Funding
-
Business4 days agoCustoms Seek Support To Curb Smuggling In Ogun
-
Featured4 days agoINEC Proposes N873.78bn For 2027 Elections, N171bn For 2026 Operations
-
Sports4 days agoSWAN Rivers Set-up Five Functional Committees
-
Sports4 days ago
NSC Disburses N200m Training Grants To 26 Athletes
-
News4 days ago
Police Bust Kidnapping Syndicate In PH
