Editorial
Palliatives For Subsidy Removal: The Rivers Example
Since the Federal Government announced the removal of subsidy on Premium Motor Spirit (PMS), otherwise called petrol, January 1, this year, a lot has been said and done, and much unsaid and undone. Much of what has been unsaid and undone are solutions.
Understandably, Nigerians seem totally divided over whether or not the Federal Government‘s action was timely. But it does appear that a good number of Nigerians are unanimous that removal of subsidy on petroleum products is indeed a necessary pain for future prosperity.
Sadly, those who are protesting the removal and chanting anti-Jonathan songs are not among the uninformed many who could claim, and rightly so, that the government’s action was hasty. For this class of Nigerians, even one year of education on the advantages of the subsidy removal would make little or no sense.
In sharp contrast, organized labour cannot claim to be totally oblivious of not just the need but indeed plans by government to break away from the vicious cycle of a consuming economy as against a producing one, necessary to add more quality to the lives of Nigerians.
For instance, in the days leading to the eventual approval of a new minimum wage in 2010, some if not all the governors had argued that payment of the N18,000 wage would only be possible if the subsidy on petrol was removed and funds thereof channeled towards more productive uses. At the same time, the benefits of such subsidy removal were properly canvassed for the willing to understand.
That is why it is unfortunate that Action Congress of Nigeria (ACN) governors, would, rather than defend a collective decision and seek urgent palliatives, play to the gallery and demand fiscal federation in the midst of a nationwide strike.
Fiscal federation as a request is indeed a welcome development, if for nothing else, to ensure that the various states in the union source and manage their resources independently. Such a call should start with indigenous palliatives to assuage the likely pains of Nigerians in their various states, and not create the false impression that removal of petroleum subsidy was a unilateral decision of President Goodluck Jonathan and a few managers of the economy.
This is why Rivers State Government deserves commendation for laying the right foundation for a more realistic demand for fiscal federation, one that is willing to accept both assets and liabilities, and demonstrate in very unambiguous ways, the ability to manage the weighty demands of a truly fiscal federation.
Rather than play to the gallery and enjoy phoney popularity among protesters, Rivers State Governor, Chibuike Rotimi Amaechi faced the controversy head-on and emerged with palliatives that have made the state the most peaceful in the midst of a national crisis.
Addressing the people in a state-wide broadcast, last Tuesday, Governor Amaechi announced the preparedness of his administration to reduce the likely pains of the subsidy removal on the people by outlining immediate palliatives.
These include pegging the pump price of petrol at N137 per litre, and paying for products allocated to Rivers State marketers for onward delivery to distributors at minimal cost to ensure availability and regular supply. Government will also guarantee escort of tankers to relevant stations to monitor possible diversion of products outside the state.
To that end, all independent marketers in the state have began registration with the Petroleum Products Marketing Company (PPMC) on or before January16, this year.
In addition, government slashed intra-city transport by 50 per cent after fruitful consultations with the National Union of Road Transport Workers (NURTW), which will also manage the Federal Government’s mass transit scheme in the state.
Also, government directed the Commerce Ministry to immediately commence the establishment of seven Discount Markets, two in each senatorial district and an additional one in the state capital, Port Harcourt.
The discount markets, the governor opined, will stock wares directly from manufacturers.
These proactive measures were taken by the state government with the conviction that the Federal Government’s action on subsidy was most imperative, if Nigeria is to guarantee a better future for her citizens.
This is what The Tide expects from the various state governments. If replicated in the various states, we believe, these measures will render useless, the cheap political points, some politicians want to make out of the national strike called by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).
In the meantime, we urge more and more meaningful dialogue to help eliminate the grey areas in the implementation of the subsidy regime and the uses to which accruable funds would be put. The removal of petroleum subsidy in our view is a necessary action that deserves the support of all, if properly handled, just as Governor Chibuike Amaechi has done in Rivers State.
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