Fuel Subsidy Removal: Let Reason Prevail

Despite protestations from organised labour and the majority of Nigerians, it appears the federal government has made up its mind to remove subsidy on petrol as from the first quarter of next year. There is no better peep into government’s thinking than the various advertisements and commercials running in the media about the desirability of the contentious policy.

Organised labour has threatened to ground the country if the government goes ahead with its plan.

Also, the House of Representatives has come out to support the popular opinion that government should not increase the burden of the people by withdrawing subsidy on petroleum products.

We need not remind the government that once the subsidy is removed, it will have unpleasant repercussions on the welfare of Nigerians and the economy.

Apart from leading to an increase in the cost of transportation, the spiral effect will also be felt in the cost of goods and services.

We think Nigerians can hardly afford another spiral increase in the cost of goods and services at this period when inflation is on the rise.

The government needs to tread with caution and listen to the voice of reason. If there is one thing this administration needs now, it is the support and cooperation of the people to be able to implement its transformation agenda for the country.

This administration can ill afford to have a social upheaval on its hand again in the light of the ongoing bombing campaigns by the Islamic fundamentalist sect, Boko Haram.

President Goodluck Jonathan should suspend the implementation of the policy for the time being until measures are put in place to cushion the effect of the policy on the populace.

The explanation by supporters of fuel subsidy removal that implementing the policy will not lead to outrageous cost of living and that just like the GSM became affordable to all Nigerians, petrol will be cheap and accessible to all, is not entirely correct.

This is because petrol is unlike GSM. Easy movement from one place to the other depends on how cheap petrol is. If the government goes ahead and remove the so-called subsidy, the immediate result will be the hike in transportation cost to reflect the new reality. Movement will be restricted and the prices of goods and services will skyrocket.

As a new year approaches, Nigerians look up to their leaders to ameliorate their sufferings and give them dividends of democracy. Like we have been saying, President Jonathan should focus his attention on providing stable power supply and embark on massive road repairs throughout the country.

If the president can concentrate his attention on these and deliver, posterity will remember him as one who banished darkness from the land and his name will be etched in gold.

Once again, we say this is an inauspicious period to remove the subsidy from petrol. The government should focus on other areas to generate revenue to service its self-imposed bureaucracy.