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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Editorial
That Oshiomhole’s Call On FG’s Road Projects
There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.
The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.
We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.
This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.
The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.
The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.
Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.
There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.
By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.
Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.
Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.
Editorial
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