Fuel Subsidy: Okonjo-Iweala, Sanusi, Oshiomhole, Falana, Agbakoba, Others Differ Over Removal

Resistance against the planned removal of fuel subsidy by the Federal Government shifted to a town hall meeting held in Lagos today where Labour and civil society groups restated their objection to the unpopular policy.

Vice-President of the Nigeria Labour Congress, NLC, Isa Aremu said though Labour was not ideologically against the plan, it has strong fears that the aftermath of the removal of subsidy would be a “win win” situation for the federal government.

“Nigerians will resist any attempt to pay higher prices for imported petroleum products,” Aremu vowed, adding that the government should move from subsidising import to subsidising local production of petroleum.

The interactive forum which has a panel of discussants, was broadcast live on television. The meeting brought together supporters of the policy and those against it.

Making his submission, activist and lawyer, Mr. Femi Falana urged the Federal Government to listen to “alternative suggestions” and allow for more time to engage Nigerians before going ahead with the plan to remove fuel subsidy. He said that the fuel cabal had a field day because the government had refused to implement all the necessary laws that would have prevented them from ripping off Nigeria.

“Don’t impose further punishment on Nigerians. They cannot afford to pay for the corruption and inefficiency of government,” he said.

The Minister of Finance and Coordinating Minister of the Economy, Mrs. Ngozi Okonjo-Iweala, who was on the panel, led a government team including the Minister of Petroleum Resources, Diezani Alison-Maduekwe, the Central Bank of Nigeria Governor, Sanusi Lamido Sanusi, the Group Managing director of NNPC, Austin Oniwon and the Attorney-General of the Federation and Minister of Justice, Mohammed Adoke.

Okonjo-Iweala, in her presentation, said fuel subsidy removal was long overdue to allow for better regulation of the oil sector and for transparency.

According to the minister, government can no longer sustain the subsidy which she said gulped about N1.3 trillion in 2011 alone and which she claimed amounted to over 30 percent of total government expenditure.

Okonjo-Iweala admitted that there were some “untoward things” going on in the management of the oil sector, but said continuing with subsidy payment will be unwise.

According to her, “the present burden of subsidy on our finances is no longer sustainable.”

The Petroleum Resources Minister, Allison-Maduekwe explained that to lessen the impact of subsidy removal, government is working to make the country’s refineries function at 90 percent capacity utilization in 24 months time.

Governor Adams Oshiomhole of Edo State in his contribution said he was not against subsidy removal in principle, but against realistic measures not being taken ahead to serve as a buffer for the effect on Nigerians.

Also speaking, lawyer and activist, Olisa Agbakoba, SAN, said though there is nothing “conceptually wrong” with the promise of competition and free market that fuel subsidy removal will bring, government has to sacrifice more before going ahead with the policy.

“We are not giving subsidy removal a bad name; if you want to put a burden on us, show us the one you (government) are carrying,” Agbakoba said.

Apart from the panelists, other notable speakers and dignitaries who graced the occasion include Ben Murray Bruce, Silverbird Group chairman; Alhaji Aliko Dangote, Chairman of Dangote Group; Mr. Femi Otedola of Zennon Oil; John Momoh of Channels Television, Nosa Igiebor of TELL magazine; Vanguard’s publisher, Sam Amuka-Pemu; Ray Ekpu, formerly of Newswatch, Frank Aigbogun, publisher of Business Day, former Ogun State governor, Chief Olusegun Osoba and former NPAN president, Isa Funtua.

—Tokunbo Olajide/Jamiu Yisa