Editorial
States, LGs, And Subsidy Funds
The general outcry which greeted the Federal government removal of subsidy from premium motor spirit (PMS), otherwise called petrol, effective January 1, 2012 did not come as a surprise to the authorities.
There had been general consensus that the citizenry were passing through unprecedented, yet avoidable difficulties.
This was evidenced by the high cost of living, the breakdown of almost every social infrastructure like hospitals, poor road network nationwide, epileptic power supply which had crippled many businessed and the seemingly intractable insecurity of lives and property in the land. That was why the general strike which was called by the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC), and civil society groups on January 9, was embraced by virtually all Nigerians to protest the removal of subsidy from petrol for which a reversal to the pre-January 1 price was called for.
This was so because it was thought that the subsidy removal was the last straw which was aimed at compounding the sufferings of the common people. This line of thought canvassed by majority of Nigerians was hinged on the argument that Nigeria being a oil-rich nation, Nigerians expected to purchase petroleum products at low prices, as their own share of the commonwealth.
However, as government in its wisdom felt that the deregulation of the downstream sector of the petroleum industry, of which phased removal of subsidy was a part, and that the policy was in the best interest of the country, it went ahead to make the pronouncement in that direction. To support its position, the Federal Government argued that the multiple malaise confronting the nation such as high unemployment level, which partly accounts for the high rate of crime, including high profile murders, kidnappings and armed robbery could be ameliorated with the removal of subsidy on petroleum products. According to it, the policy would open up the industry to competition by attracting direct foreign investment (DFI), and therefore, create avenues for gainful employment for youths.
Besides, with the ensuing competition in the petroleum industry, prices of petroleum products would naturally fall as in the telecommunications sector.
Moreover, deregulation would discourage smuggling of the products from Nigeria to other neighbouring West African countries where the products sell at higher prices, and thus dislodge a petroleum cabal which smiles to the bank at the expense of the people.
But more importantly is government’s indication that funds derivable from subsidy removal would be judiciously applied through its Subsidy Reinvestment and Empowerment (SURE) scheme. This is very impressive as it promises to invest such funds in the improvement of roads, hospitals, education, the railways, and boost agriculture.
This commendable plan should be supported by all even as we hope that those entrusted with this herculean task would not let Nigerians down.
The role which the Education Trust Fund (ETF) played in the development of nation’s institutions of learning will not be forgotten in a hurry. The success achieved by the ETF no doubt, was a reflection of the personality of the executive chairman of the institution.
Therefore, The Tide insists that revenue that would be disbursed to states and local governments should also be positively applied to projects that would improve the living standards of the people, particularly the rural dwellers who lack potable water and access to healthcare facilities.
This could be achieved at the local levels by the authorities interacting with the various communities so as to discover their needs which satisfaction could impact positively on their lives.
Therefore, the various states should desist from embarking on gigantic or “white elephant” projects which would only serve as a drain pipe of the scare resources.
The Houses of Assembly should ensure proper application of the post-subsidy funds by stepping up their oversight function to checkmate abuses at the local government levels.
President Jonathan and his economic team cannot afford to fail Nigerians, but they require the support of all and sundry to succeed.
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