Economy
Nigerians are ever ready to find new and innovative ways to keep body and soul together in spite of the numerous economic challenges that the government keep plunging them into. The country has been grappling with the impact of inflation, unemployment and other socioeconomic challenges, especially the abrupt announcement of the removal of the fuel subsidy by President Bola Ahmed Tinubu.
By Anthony Isibor
ALTHOUGH the announcement of the removal of petrol subsidy by President Bola Tinubu has caused an upset on the economy and negatively affected many businesses, including the cost of petrol, prices of goods and transportation, many Nigerians seem to be settling to the new realities.
The price of petrol, which was the direct recipient of that announcement was the first to be affected with the petrol marketers reacting almost immediately by stopping the supply of the products even as fuel stations increased the price of petrol and long queues reappeared at petrol stations.
Consequently, the price of transportation doubled to accommodate the new price hike and the burden was shifted completely on the passengers.
However, some level of sanity returned to the market after Mele Kyari, NNPC boss announced new price templates for petrol across the country. Nigerians were surprised at the new fixed prices of petrol, which ranged from N488 to N550 per litre.
A transporter, who simply wants to be known as Fidelis, expressed his displeasure at the increase, but he was, however, confident that the country would pull through.
While the argument for or against the merits and demerits of fuel subsidy removal continues, millions of Nigerians are struggling to adjust to the new realities, which the impact of the removal of petrol subsidy have imposed on them.
For instance, the Federal Road Safety Corps, FRSC, has advised Nigerians to consider using bicycles as alternative means of transportation to shield themselves from the negative economic effects of the jump in fuel prices.
The proposal was made by Joshua Adekanye, the Oyo State Sector Commander of FRSC at the celebration of the 2023 World Bicycle Day in Ibadan on Saturday, June 3, 2023,
Adekanye noted that it is more advisable now for the general public to make use of bicycles for their daily commuting.
According to him, Nigerians should switch to using bicycles to cushion the effect of the subsidy removal.
“Use of bicycle is economically cheap because the cost of using bicycle is not as expensive as using a car or motorcycle,” he said.
There are already media reports of Haruna Jilantikiri, the Chief Whip of the Adamawa State House of Assembly, who has opted to use bicycle and protest the recent fuel price hike.
The lawmaker, who represents Madagali constituency at the state Assembly, said that he decided to dump his car and use bicycle for his daily activities.
In a statement by the Reformed Nigeria Youths Movement, RNYM, has disclosed that Nigerians will certainly benefit from subsidy removal, though, it may come with some pains.
According to Moronkola Teslim, National Chairman of RNYM, it is no longer news that removal of subsidy would have adverse effects on the masses from the increase in the price of petrol and the increase in the cost of goods and services and high-level inflation to mention but a few.
He said it was important to realise that there would be a huge benefit which Nigerians stand to gain in the removal of oil subsidy, provided that government maintains its ground and with little endurance from the masses.
“It is just within the twinkle of an eye that we will all start enjoying the benefits of the subsidy removal.
“The benefits we stand to gain from the removal of the fuel subsidy ranges from availability of funding for other important projects of the government.
According to him, the removal of subsidy will stop the illegal diversion of petrol to neighbouring countries by some marketers and the product would now be available to Nigerians.
He, however, called on patriotic Nigerians to wake up, not only to support the removal of oil subsidy by the Federal Government.
As Nigerians adjust to the new fuel price administration, the Trade Union Congress of Nigeria, TUC, has released some demands it made at the meeting held with the Federal Government on Sunday June 4 over the fuel subsidy removal.
It highlighted 14 of the demands for immediate implementation and five for the medium term. The demands include maintenance of the status quo ante of the pump price of petrol, while discussion continued.
“Minimum wage should be increased from the current N30,000 to N200,000 before the end of June 2023, with consequential adjustment on cost of feeding allowance, like feeding, transportation, housing, among others.
“A representative of the state governors will be party to this communique and all the governors must commit to implement the new minimum wage.
“Tax holiday for employees both in government and private sector that earn less than N200,000 or $500 monthly whichever is higher.
“PMS Allowance to be introduced for those earning between N200,000 to N500,000 or $500 to $1,200 whichever is higher, “ it said.
Others include the setting up of intervention fund where government would be paying N10 per litre on all locally consumed petrol.
In a statement signed by the union’s President, Festus Osifo, and General Secretary, Nuhu Toro, the union called for the immediate implementation of the demands.
According to the TUC, the primary purpose of this fund is to solve perennial and protracted national issues in education, health and housing.
TUC also called for a governance structure that will include labour, civil society and government will be put in place to manage the implementation.
“Federal Government should provide mass transit vehicles for all categories of the populace.
“State governments should immediately set up a subsidised transportation system to reduce the pressure on workers and students: the framework around this will be worked out.
“Immediate review of the National Health Insurance Scheme to cover more Nigerians and prevent out of stock of drugs,” the union said.
On the medium term, the union called for the deployment of Compressed Natural Gas, CNG, across the country in line with the earlier promise made by the government.
It said that the framework and timeline would be developed and agreed by both parties.
It also called on labour and government to design a framework that would be geared toward the reduction of cost of governance by 15 per cent in 2024 and 30 per cent by 2025.
“A framework should be immediately put in place to maintain the road and expand the rail networks across the country.
“Government must design a framework for social housing policy for workers through Rent to Own System.
“The state of electricity in the country must be appraised and an action plan should be defined with timelines on how to get this fixed.
“A strong monitoring team comprising all parties will be constituted.” the union added.
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Tags: Festus Osifo FRSC Mele Kyari NNPC Nuhu Toro President Bola Tinubu
