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Palliative And Sustainable Economy
The President Bola Ahmed Tinubu led Federal Government on Thursday, 16th August 2023 announced a N5 billion palliative for each of the 36 states of the Federation and and the Federal Capital Territory, Abuja to cushion the harsh social-economic realities of the removal of subsidy on petroleum products, on the groaning masses. The governor of Borno State, Babagana Zulum, made the announcement in Abuja when he spoke to State House correspondents after a National Economic Council meeting presided by the Vice President of Nigeria, Alhaji Kashim Shettima. The Federal Government’ had initially announced its plan to give a paltry N8,000 to 12 million vulnerable households every month under a six month purported welfare scheme.
However, such plan did not go down well with the masses as the removal of subsidy on Petroleum products has dealt untold hardship on the people. The cost of living has quadrupled. Transport fares, house rents, prices of material necessities, cost of education and doing business such as small and medium scale enterprises and other businesses that depend on petroleum products, have further increased. The consumer of the goods and services bears the brunt of it all. For instance the cost of photocopying a page document that was N5 is now N50, about 500 percent increase. However, the upwardly reviewed N5 billion palliative to each of the 36 states of the Federation and the Federal Capital Territory Abuja appears to elicit a flicker of hope and earns the approval of some Nigerians when compared with the N8,000 for each of the target 12 million households across the country which some people described as “assault on the sensibility of Nigerians” and “anti-poor poor” policy.
In fact, the organised labour, under the aegis of the Nigeria Labour Congress (NLC) and Trade Union Congress had insisted that the palliative proposed by the Federal Government’ was far from being enough and insignificant to cushion the sufferings in Nigeria following the removal of subsidy on petroleum products. However, as commendable as the N5 billion palliative to states would appear, will the reviewed Palliative translate to a sustainable economic impact on the masses? How long will such harsh economy cushioning measures last in a country where proactive economic measures to fundamentally address the spiking poverty level in Nigeria, is elusive? Speaking on the palliative, a small business operator in Port Harcourt, Mr. John Chukwudi did not believe that the palliative measure will address the multi-dimensional problems faced by the citizens without putting in place basic infrastructure like refineries and electricity as well as upward review of salaries of workers.
According to Chukwudi, the sad experiences of the Ebola and COVID 19 intervention schemes further cast doubt on the possibility of palliative on subsidy removal getting down the vulnerable people. “I don’t believe that this money released by the Federal Government’ to ease the sufferings of the people will really get to them. Were you not in this country during the Ebola, Covid-19 and flood periods, did money or relief materials really get to vulnerable people? Some of the materials were stocked in warehouses in some states while the people wallow in poverty and pains”. Mr. Chukwudi who was pessimistic about the implementation of palliative scheme in the States, said “ For me seeing is believing”. For Mrs. Sopakirite Lily-West, an agro-allied economist, palliatives without basic infrastructure is a defective measure of addressing a social-economic problem like the one Nigeria is into presently.She said palliative is only a temporary, stop-gap measure while lasting measures are being put in place.According to her, spending N185 billion Naira on palliative if not well invested will translate to a colossal and monumental waste.
“Imagine that the Federal Government’ had put such N185 billion on an infrastructure to boost the economy, what that will yeild to, in five years.The present administration would have put in place infrastructure like improved electricity, functional refineries and friendly business environment before removal of petroleum subsidy. “For me what the Federal Government under President Bola Ahmed Tinubu has done is putting the cart before the horse. There must be a collision and counter-productivity”. A Port Harcourt based lawyer is of the opinion that giving N5 billion to each of the 36 States and the Federal Capital Territory, is a covert way of increasing the capacity of some State governors to spend frivolously, waste, siphon public. funds.According to Mr. Sobere, “ You know that some State governors don’t have a sustainable economic development blueprint for the state they are governing.
So when such special money which is actually meant to make the people heave a sigh of relief comes, it is like an imprest for the governors. We are here in Nigeria we saw what happened when relief materials given to flood victims by donor organisations including multinational companies did not get to most of them. You should also not forget the COVID 19 intervention schemes, and Ebola intervention how many vulnerable people benefitted? Rather, it was a smokescreen for some of those in Government to share it among themselves to the exclusion of the needy”. In his view, a Christian cleric in Rivers State, Rev. Dr. Daddy Ibulubo says that the Federal Government’ dropped the proposal to give only N8,000 for each of the 12 million target households in the country and released N5 billion to each state and Abuja, shows it is listening to the people.
According to Dr. Ibulubo who is the Rivers District Superintendent of Assemblies of God, Nigeria “frankly speaking the initial amount of N8,000 palliative was grossly inadequate considering the high cost of living in the country. The Federal Government’ is spending N185 billion as against about N480 million on the initial plan. I hope that State Governors who are trustees and stewards of the people’s resources will give value to every kobo received to ameliorate the plight of the suffering people of the country. The people are really suffering. And the suffering is man-made. So they should be proactive to address it “ For its part the central Labour organisations, the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) have urged the Federal Government’ to make upward review of workers salaries and wages as an integral factor of the palliative scheme.
The umbrella unions had proposed a N200,000 National Minimum Wage for the Nigerian worker. Joe Ajaero of the Nigeria Labour Congress in a speech recently gave President Tinubu a knock for not working the talk on public servants’ salaries.
“Labour is disturbed that while President Tinubu in his speech lavishly praised the private sector for quickly dispensing wage awards to their employees, the Federal Government’ has failed to do the same for public workers in its employment. This is a case of failing woefully to live up the standard it has set for others to meet”, Comrade Ajaero said.As measures to cushion the effect of removal of subsidy on petroleum products on public servants, some State Governors and Government institutions have also announced the reduction of official work days from five to three. The governors include that of Edo, Borno, Bayelsa, etc. The management of University of Ibadan has also reduced its working days.
However, the Rivers State Governor, Sir Siminilaye Fubara has purchased and put on various routes in Port Harcourt metropolis and its environs fleet of vehicles to ease movement at no cost to the commuters with a view to cushion the effect of the subsidy removal on the residents of the State. This is aside other relief packages, the Rivers State Governor has promised to roll out soonest while the promotion to various salary grade levels of more than 4,000 workers in the State public service, had been implemented by Governor Fubara with assurances of improving on the welfare of workers. Meanwhile, the Rivers State Government has also commenced rehabilitation of the State Secretariat in keeping with its Civil Service friendly policy. The President, Bola Ahmed Tinubu had in his maiden address to the people said the removal of subsidy on petroleum products is a necessity to prevent the country from “going under” and deliver the economy of the nation from the stranglehold of a few unpatriotic elements in the country.
While many agree with the present and successive administrations that the removal of subsidy is necessary to free and channel funds accruing from the subsidy removal into critical areas of infrastructure, the implementation of policy is hasty and ill-timed.Economists and Labour leaders have advocated for the rehabilitation of nation’s four refineries to make them work at installed capacities, regular power supply, provision of welfare packages for workers and others The unavailability of pre-subsidy removal incentives have triggered among several other challenges, high cost of living and outrageous hike in the pump price of petroleum products. A litre of premium motor spirit known as petrol, is now sold for about N700. While the masses associate high pump price of petroleum products to the moribund state of Nigerian refineries, the Senior Special Assistant to the President on Public Affairs, Aguri Ngelale told Nigerians “to disregard the myth that more refineries in Nigeria would translate to cheaper fuel price”
He said having more refineries would save Nigeria the cost that would have gone into importing fuel products. According to Ngelale, “that is a myth, it does not happen anywhere in the world, even if we had the most refineries producing the most PMS in the world, you would find that the most prolific PMS producers with their refineries do not charge differently from the countries without refineries”, Ngegale said in an interview on TVC. The kernel of it all is that making all refineries in Nigeria work at installed capacities will not scale down the pump price of petroleum products. That would suggest that Nigerians are living at the mercy of market forces. So Nigerians should cultivate the frame of mind of adjusting to new increases as may be dictated by the market forces.
If refineries are fixed to work at installed capacities and the anticipated relief is not realistic, if “PMS producers with their refineries do not charge differently from countries without refineries”, then huge amount of money put in building and maintaining the refineries is a colossal waste. And Nigerians should be ready to live with the multi-dimensional challenges, pain and hardship posed by removal of subsidy on petroleum products. No wonder Mr. President did not include fixing refineries as part of his administration’s plan to solve the economy problem. His inclusion of the refineries following a knock by the NLC president was an after-thought designed to soothe frayed nerves. Let the palliative stimulate a sustainable economic growth for States and the country. A sustainable economic growth is the bedrock for national development, and massive job creation.
By: Igbiki Benibo
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More Synergy’ll Win Fight Against Oil Theft, Fubara Tells CDS …Promises Six Gun Boats To Tackle Sea Piracy
Rivers State Governor, Sir Siminalayi Fubara, has revealed that against orchestrated sabotage by disgruntled elements to frustrate the fight initiated by his administration to tackle illegal bunkering in the State, formidable successes have been recorded, undoubtedly.
The Governor expressed delight that the success will further be sustained, given the commendable interest shown by the Presidency that has constituted the Niger Delta Monitoring Team, and tasked with the mandate to curb oil theft and illegal refining of crude oil in the entire region.
Governor Fubara spoke when he received the Chief of Defence Staff, General Christopher Musa, who led a delegation of the Joint Federal Government Team on Security of National Assets on courtesy visit to Government House in Port Harcourt, last Wednesday.
The Governor said those saboteurs are not only attempting to disrupt the course of delivery of critical projects and good governance but extended it to create disaffection within the thriving business climate because they do not want to see anything good reckoned with his administration.
But Governor Fubara stated that he is not deterred by those acts because there is a stronger determination to rewrite the story and ensure that Rivers people get the best while the national economy does not suffer by what happens in the State.
Governor Fubara said: “You know what they say, everything might not be God’s wish, but everything worketh for God’s desire.
“We are faced with a situation where the little that we are doing here are being sabotaged by some persons who do not want to see any good in what we are doing.
“This is not just in the aspect of governance, but also in the aspect of economic activities of this country. And, one way or the other, this particular moment has created an opportunity for us to rewrite those stories.”
Governor Fubara emphasised: “I can say here boldly that before this time, we’ve had a very wonderful working relationship with the Service Commanders here. And in Rivers State, we have done so much in the aspect of combating illegal bunkering and pipeline vandalisation.
“And, you can imagine what has just happened now. When the Federal Government is now being part of it, through the different headquarters of the (military) service arm, to complement what we are doing. I can assure you that it is going to be a total success.”
Governor Fubara stated his confidence in the calibre of members of the Team and how professional the Chief of Defence Staff has conducted their operations.
The Governor also explained that he did not appoint Henry Wordu into the team merely because he knows him, but because of his interest to defend the State and Nigeria.
He said: “It is very important, some persons may chose people because they are their relations; they are their friends, no. We need to look at people who can represent us well. He is a man who has shown so much concern, interest in the affairs of our State. So, I have no doubt that he will bring honour to us.”
The Governor also explained the drastic decision that has been taken to curb incidences of piracy at some sea routes in the State.
Governor Fubara also said: “You mentioned something, the issue of sea pirates. That is even one of the problems I am having today.
“Because of what we are doing through the Navy and the Air Force, which are also supporting us, they’ve all entered into the waterways now.
“The waterways around Bonny Local Government Area are the tracks they operate now; kidnapping of innocent people who are coming from Bonny Island to Port Harcourt or some of them on their way from Port Harcourt to Bonny Island.
“As we are talking now, we have already started doing something. Myself and the Office of the Secretary of the State Government, have already directed them to acquire six gun boats, so we can handover some of them to the Navy, so that they can cover some areas of interest.”
Governor Fubara restated his resolve to ensure that everything goes on well by providing the needed State Government’s support that will contribute to increasing crude oil production.
He added: “I can assure you that we will give all the necessary support to the committee to make sure that they succeed.
“Let me, on behalf of the Government and people of Rivers State, assure the Chief of Defence Staff that our collaboration in supporting the course of the Federal Government to ensure that (crude oil) production line increases by next year is a task that must be done, and Rivers State will be part of it to make it succeed,” he added.
In his speech, the Chief of Defence Staff, General Christopher Musa, said his visit is two-fold: first, is to assess the level of implementation of their directives towards achieving the mandate of Mr President in securing the oil producing areas, ensure that crude oil production increases.
The second reason, he said, is to inaugurate the two committees: the Defense Joint Monitoring Team and the Defense Joint Intelligence Infusion Centre.
General Musa explained: “Now, why we have these two is to enhance the work we already have been doing on ground. We have observed over time that there are gaps in the activities ongoing, and for us to be able to achieve the mandate of the Commander-in-Chief and President of Nigeria, we have to do things differently.
“And firstly, what we did was that with the Operation Delta Safe (ODS), we made sure that all the security forces and other agencies are working together under the Joint Task Force.
“They have their company Commanders and personnel, and whatever that is being done, we are doing it together in unison. We understand that synergy is very crucial to our success, and that is the first thing that we did.
“And secondly, the Monitoring Team and the Infusion Centre. The Monitoring Team is to also go round and see where they are gaps to be able to direct the operations so that they can be able to see that things are covered.”
General Musa added the Infusion Centre is task to also harmonize all the intelligence agencies together, gather all the information, whether it deals with oil production or other acts of criminality that will help in taking direct action to ensure that there is peace.
The Chief of Defence Staff also expressed appreciation to Governor Fubara for creating an enabling environment with his sterling leadership style.
He noted that there is zero rancor which has engendered peace and security as seen in Rivers State.
He said, “We want to say a very big thank you, and to continue to show and assure you that the Armed Forces of Nigeria are fully with you to ensure that Rivers State, indeed, is peaceful and progressive. We want to also appreciate you for the support directly to the members of the Armed Forces.”
He added that the peaceful atmosphere created by the government has enabled members of the Armed Forces in the State to perform their operations and other activities unhindered, and urged the Governor to continue to show leadership by sustaining peace and advancing the development of the State.
The United Nations Children’s Fund (UNICEF) has affirmed its commitment to end open defecation in Nigeria.
Jane Bevan, Chief of Water, Sanitation and Hygiene (WASH), UNICEF, stated this at a two-day media dialogue themed “Ending Open Defecation in Nigeria and Elimination of Neglected Tropical Diseases (NTDs)” in Lagos.
Bevan emphasised that collaboration from all sectors was crucial in achieving this goal.
“We are not just working toward an open defecation-free Nigeria; we are building a sustainable future where improved sanitation drives health, economic growth and environmental resilience.
“We need the government, partners and the private sector to join us in making Nigeria open defecation-free.
“We also need the media to assist us in sensitising the public to the dangers of open defecation.
“By leveraging the power of information, we can create a movement that not only raises awareness but also translates into tangible actions for ODF at the community level.
“We must keep this campaign on the front burner,” she said.
In her remarks, Mrs Chizoma Opara, a Deputy Director, Federal Ministry of Water Resources and Sanitation, expressed concern over the persistence of open defecation in the country.
Opara, who is also the National Coordinator of the Clean Nigeria Campaign, noted that the 2021 WASHNORM reports, revealed that more than 48 million Nigerians still engage in the practice.
“Open defecation is a sanitation and hygiene-related issue and a significant contributor to the spread of NTDs.
“Diseases like onchocerciasis, schistosomiasis, trachoma, lymphatic filariasis, and soil-transmitted helminthiasis (STH) are transmitted through contaminated soil and faeces, perpetuating a cycle of poverty, malnutrition and ill health.
“By addressing open defecation, we can significantly reduce the transmission of NTDs,” Opara said.
Aituaje Iruobe, popularly known as WAJE and a UNICEF Champion, expressed concern on the high rate of open defecation in Nigeria, reiterating her commitment to leading the campaign against the practice.
The Tide source reports that the event also featured a panel of discussion with stakeholders deliberated on strategies to eliminate open defecation and related issues.
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We’ll Be Forced To Export 97% Of Our Petrol, Dangote Refinery Warns …NNPCL Requests Office Space At Dangote Refinery
Dangote Refinery has said that it will be forced to export 95-97 percent of its Premium Motor Spirit (petrol) because of low patronage by marketers in Nigeria.
This is as the 650,000 barrels per day indigenous oil firm revealed that only three to five percent of petrol marketers are willing to buy its petrol.
The Vice President, Oil and Gas at Dangote Industries Limited, Devakumar Edwin, disclosed this on Wednesday during an X Space session organised by Nairametrics.
Dangote Refinery has said that it will be forced to export 95-97 percent of its Premium Motor Spirit (petrol) because of low patronage by marketers in Nigeria.
This is as the 650,000 barrels per day indigenous oil firm revealed that only 3 to 5 percent of petrol marketers are willing to buy its petrol.
The Vice President, Oil and Gas at Dangote Industries Limited, Devakumar Edwin, disclosed this on Wednesday during an X Space session organized by Nairametrics.
He gave insights into the challenges facing the Dangote Refinery and the country’s oil and gas sector.
“I’m selling 2 to 3 percent to small traders who are willing to buy, while the rest 95 to 97 percent I’m forced to export,” he said while speaking about the quantity of the refinery’s products sold locally.
The development comes as Sunday’s date for NNPCL to lift Dangote Refinery’s fuel approach without a visible plan.
Recall that the President of Dangote Group, Aliko Dangote announced Dangote Refinery’s first petrol rollout.
He, however, disclosed its distribution to marketers is dependent on the NNPCL.
Meanwhile, the Vice President (Oil & Gas) of Dangote Group, Devakumar V.G. Edwin, has revealed that the Nigerian National Petroleum Company Limited, NNPCL, has requested a permanent presence at the Dangote Refinery as part of the crude oil agreement.
Edwin revealed this during a Twitter Space session organized by Nairametrics.
“NNPC has informed us that they intend to station a team of 6 to 10 people permanently at our refinery,” he stated.
Devakumar V.G. Edwin, Vice President (Oil & Gas) of Dangote Group, has revealed that the Nigerian National Petroleum Company Limited, NNPCL, has requested a permanent presence at the Dangote Refinery as part of the crude oil agreement.
Edwin revealed this on Thursday during a Twitter Space session organized by Nairametrics.
“NNPC has informed us that they intend to station a team of 6 to 10 people permanently at our refinery,” he stated.
“They’ve asked us to provide office space for them since they will be supplying the crude, overseeing the production, and buying back the products in Naira.”
Nigerians are hoping that the production and sale of petrol by the Dangote Refinery would help soften the hardship in the country.
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