Saying that the current regime of subsidies in the pump price of petroleum product in Nigeria is inefficient, corrupt and a waste of scarce national resources, the organized private sector Friday backed President Goodluck Jonathan’s plan to discontinue with the programme. Private sector leaders indicated their support for Jonathan at the end of a two-day presidential retreat in Abuja, the Nigerian capital, for public and private sector leaders.
Spokesman of the private sector group and publisher of Thisday newspapers, Mr. Nduka Obaigbena, said that ‘the majority of Nigerian citizens do not enjoy the benefit of the current subsidy of petroleum product today, rather the subsidy itself operates to the benefits of very few beneficiaries.’
The position of the private sector, endorsed by 42 of the 45 participants at the retreat, also noted that the financial burden of subsidy was unsustainable and untenable in a nation where critical infrastructure, human and capital development were in need of investment.
He said: ‘We noted that the federal government had promised to consult widely with the labour organisation, civil societies and other stakeholders to ensure a high level of engagement on the deregulation regarding the benefit of a deregulated price regime, particularly the impact on the improved livelihood of Nigerians.
‘Taking cognisance of the foregoing, we call on the federal government to ensure that the benefits of deregulation accrued to the generality of Nigerians in a manner that it benefits the poor and the underprivileged.’
Nigeria’s foremost industrialist, Aliko Dangote, echoed the stand of the organized private sector, telling journalists at the end of the retreat that ‘the subsidy does not benefit anybody. If the labour is really right in their demands, they should go and fight for diesel and low fuel oil because that is really what concerns the masses.
‘The masses are always traveling by buses. Have you ever seen a rail mass traveling by air? No! The aviation fuel has been deregulated for the past 11 years. Diesel has been deregulated and we are paying 160 naira or 140 naira per litre. For low fuel oil, we are paying from 25 naira to 90 naira. And the same labour has not really come out to ask for subsidy which can even close down the factories in which they work.
‘What we are asking is, why should government be giving 200 billion naira in terms of subsidy per month when we don’t have good roads and so many things. So let the government use the money to develop the country, provide power and other social amenities.’
Asked if Nigerian manufacturers will survive without subsidy, Alhaji Dangote stated: ‘but we are surviving now that we don’t have any subsidy. Let me repeat, we have not enjoyed subsidy. In the last 10 years, we have been paying market prices for diesel, low fuel oil and even natural gas. And these are the three things that we use in terms of producing goods and services.
‘The one on petrol is for you and me to use our cars to go out to parties and do several other things which does really have no relation to work. And once you keep giving these things as subsidy, it means our neighbors will not import anything. You are draining our foreign exchange. We are giving our subsidy that nobody is benefiting from. And this thing is really killing the future of your children.
‘Labour should understand. At a meeting with late President Umaru Musa Yar’Adua, the current NLC President, the TUC President and the former Presidential economic adviser, Dr Yakubu Tanimu, we agreed that the subsidy will now be removed from January 2008?
Governor Peter Obi of Anambra State added: ‘Fuel subsidy is not sustainable. We do not have the funding to sustain such waste. Whatever is saved from the removal of subsidy can be applied properly in rebuilding our infrastructure which will eventually bring about turn around in competitiveness and doing business in Nigeria that will employ people.’
He said “Nigerians should hold the government accountable. Everybody must join hands to make sure that the money is put to proper use.’