President Goodluck Jonathan Thursday publicly spoke on the planned removal of fuel subsidy, saying the deregulation of the country’s downstream sector would be done in phases and executed in “deliberate and responsible way”. President Jonathan assured Nigerians that “in the event of deregulation, this administration is committed to investing the resources in tangible infrastructure and providing social safety nets and other mechanisms to moderate the impact of the reforms on the most vulnerable segments of our society.”
Speaking at the opening of the two-day retreat for public and private sector leaders on economic development and job creation, the President also said his administration is mindful of its manifest destiny of providing the guiding light for the transformation of Nigeria.
Therefore, he said the planned phased removal of petroleum subsidy would provide the following benefits to Nigeria: harness revenues for capital stock formation; leverage on private sector investments in public-private partnerships (PPPs) to help bridge the infrastructural gap; and create incentives for investment in refineries and the petrochemical industries.
The planned fuel subsidy removal, starting in January 2012, has generated angry reactions from individuals and groups, especially the country’s two umbrella workers’ union – Nigeria Labour Congress and the Trade Union Congress – which have vowed to oppose it.
Jonathan noted that during the retreat, various fiscal and other policy measures will be discussed, urging top political and business leaders “to dialogue openly, frankly and in good faith’.
‘Let us consider dispassionately the various policy options and alternative paths that may lead towards our destination. Let us collectively decide on the best course that will swiftly propel us to the attainment of our shared goals as a nation,” he said.
President Jonathan listed some of the policies already being implemented by his administration as; accelerating economic diversification by improving our investment environment; ensuring that the nation’s sustained economic growth results in significant employment generation for wealth creation; and implementing fiscal policies that support the private sector.
Meanwhile, the President has explained why the retreat, initially scheduled for the Obudu Ranch Resort in southern Cross River State, was moved to the capital city of Abuja, saying it was to ensure the safety of the participants.
He said after invitations had been sent out, his office was informed last Tuesday that the Bebi airstrip near Obudu, which was shut down by the regulatory Nigeria Civil Aviation Authority (NCAA), had not been officially re-opened.
Jonathan said in view of this development, it would be illegal to move his guests to Obudu Cattle Ranch.
He, however, promised that subsequent retreats would be held at the resort and other prominent resorts across the country.
Jonathan seized the opportunity to call on the private sector to always patronize resorts in Nigeria for their events, particularly their Annual General Meetings.
He decried a situation where Nigerian companies move their AGMs to neighbouring countries, noting that there are good facilities in the country for such events.
Finance Minister Ngozi Okonjo-Iweala said the outcome of the retreat would form part of the 2011 budget details to be presented to the National Assembly by President Jonathan.