Opinion
The Fuel Subsidy Removal Plan
The contract between the estate where I live and the facility manager will expire in a couple of days. The manager is interested in having the contract renewed but the executive members of the estate’s residents’ association wouldn’t unilaterally decide on whether to renew the contract or not. The opinion of all the residents must be sought before such an important decision is taken. In view of that, an online questionnaire was created to enable the residents to assess the performance of the facility manager and decide whether the estate should continue with its services or not.
Hardly anything is done in the estate without the opinion and support of the residents being sought and, that way, there is cooperation of virtually everyone in developing the estate and solving whatever challenge the community may face. I have no doubt that a similar scenario plays out in many other estates in different parts of the country.
Looking at what happens in the larger society, especially in the political sphere, one wonders why our political leaders cannot adopt this democratic way of doing things in the administration of our local government areas, states and the nation. Why are Nigerian citizens rarely given the opportunity to have a say on how things are done in the country?
Often, projects or programmes are initiated without first feeling the pores of the people for whom those projects are meant. Many times the government’s mindset towards certain issues in the country or some government plans are made known either during interviews outside the shores of the country or at other public functions.
Let’s take a look at the current controversy over the government’s plan to remove fuel subsidy and payment of N5,000 transport grant to poor citizens of the country. The Minister of Finance, Budget and National Planning, Zainab Ahmed, released the bombshell during the launch of the World Bank Nigeria Development Update (NDU) last week. The reactions that have trailed the disclosure indicate that the necessary consultation and reaching out were not done before the announcement.
Otherwise, how can the National Assembly, the representatives of the people, not be aware of the proposal? The Chairman, Senate Committee on Finance, who described it as a rumour, told newsmen: “if there is something like that, a document needs to come to the National Assembly and how do they want to identify the beneficiaries. This is not provided for in the 2022 budget proposal, which is N2.4 trillion”.
The Nigerian labour leaders also expressed shock over the minister’s announcement because according to them, it was a unilateral decision without the input of Labour. In the words of the Secretary-General of the Trade Union Congress of Nigeria (TUC), Musa Lawal, ”We are surprised and shocked with the government’s pronouncement. We do not know how the government came about it. The government is calling for trouble if they think they can go ahead with subsidy removal without labour. The Presidential Committee made up of government representatives and Labour has not concluded its assignment. Our last meeting was in April. This new position is totally unacceptable to us”.
My point is that governments at various levels in Nigeria should begin to make deliberate efforts in carrying the people along in whatever they do. Opinion of the people should count. This will reduce a lot of friction between the leaders and the led and help in building trust between the two parties and a better nation.
Why can’t the government use every means possible to sensitise and educate the citizens on the benefits or otherwise of fuel subsidy removal. A lot of people are asking the criteria that will be used to determine who the ‘poor citizens’ are; how the decision to give payment of N5,000 each to about 40 million citizens came about and others; and it is the duty of those in power to provide sincere answers to these questions before going ahead with the project.
It is the responsibility of the leaders to convince Nigerians that the proposed N5000 monthly stipend will not go the way of other social intervention schemes of the government like conditional cash transfer, tradermoni, COVID-19 palliative, free school feeding and many others.
Some useful suggestions have been made on how to cushion the effect of subsidy removal should it materialise instead of the paltry sum of N5,000 which, by the way, the Minister of Finance said is not going to last for more than a year. One of them is that the government should deploy such funds to free medical services and free transport schemes for the target category of citizens. Nothing could be as reliving to a poor farmer for instance, as knowing that there is free movement of his goods from the farm to the locations where they will be sold and that he is sure to receive free, quality medical attention when faced with a health challenge. Government must listen to this strong view.
That being said, one thinks the labour unions, the students’ union and other bodies and individuals kicking against the total removal of subsidy should try to engage properly and consider the long term benefit of the removal. Many business men, economic experts and players in the oil sector have posited that the gains of the removal far outweigh its retention, that though the initial hardship will be inevitable, in the long run, Nigerians will be better off just as it is currently happening in the telecommunications industry.
The Director of Green Zeal Oil and Gas Ltd, Mr. Christian Wigwe in a chat noted that as long as the government continues to subsidize the importation of fuel, the Nigerian oil sector will never develop. He observed that none of the International Oil Companies (IOCs) licensed to operate in Nigeria has been able to build refineries in the country because it is not profitable owing to the fact that the government subsidises the importation of fuel from other countries.
He opined that if we do not take the bull by the horn now, stop the subsidy and grow our economy, if we keep borrowing money from all corners of the planet to run the country while also collateralising the loans with public infrastructure, a time will come when our creditors will take over the railways, the airports and other collateralised infrastructures and the cost of transportation we are running away from will be ten times what it is today.
By: Calista Ezeaku
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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
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