Removing Fuel Subsidy Will Push More Nigerians Into Poverty – Abdulsalami

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… as governors deny pushing for removal of subsidy

 

Olusola  Bello

 

Former Head of State Abdulsalami Abubakar on Thursday raised concerns over the removal of fuel subsidy. This is even as the governors have denied being part of those pushing for its removal.

General Abdulsalami, who was speaking at the 19th Daily Trust Summit in Abuja, said the country is facing challenges on multiple fronts and a fuel subsidy removal will only compound the situation.

The Federal Government has said it plans to discontinue the payment of fuel subsidy by June but the move has been rejected by several stakeholders, including the Nigeria Labour Congress.

“Unemployment or underemployment remain at record levels,” General Abdulsalami said. “And over 80 million Nigerians are still caught up in needless poverty.

“All of these tend to have negative effects on security.

“In fact, Nigeria now faces a food security crisis that is compounded by the COVID-19 global pandemic and the banditry in many states in Northern Nigeria.

“All of these have disrupted the fragile value chains across the country, and negatively impacted the ability of Nigerians to produce, process and distribute food.

“The result is a continued rise in the prices of food items, beyond the reach of many Nigerian families.

“On top of all these, fuel prices are expected to rise significantly in the coming months as announced last November by the NNPC.

“We all know when this happens, as the government has planned, it will push many millions deeper into poverty.”

Meanwhile,  the chairman of the Nigeria Governors’ Forum, Kayode Fayemi, on Thursday, said the decision to remove or retain fuel subsidy is not in the hands of State Governors.

Mr Fayemi made the remark during a press briefing after a meeting of the Governors.

The Ekiti State Governor said the forum has “concluded to engage the leadership of the Nigeria Labour Congress and the Trade Union Congress on how best to address this issue without causing any disaffection but with a view to salvaging the Nigerian economy for the Nigerian people.”

However, he argued that the decision wasn’t one for the Governors to make.

“For us at the forum, it is a matter that is a going concern. We don’t have a definite issue on it because it is left to the Petroleum Industry Act. It is not for us. NNPC is now a private company and the company should decide what it wants to do with the price of its products. It shouldn’t really be the business of Governors.

“It is not up to sub-nationals to decide on what happens to PMS pricing. It is an entirely exclusive responsibility of the Federal Government.

“However, we are critical stakeholders and we are members of the National Economic Council, so we contribute to debates in the Council.”

The Federal Government has said it plans to discontinue the payment of fuel subsidy by June but the move has been rejected by several stakeholders, including the Nigeria Labour Congress.

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