Subsidy Removal: Pan-Yoruba groups back Tinubu, caution Labour, others against protests

Razaq Bamidele
A coalition of eight pan-ethnic organisations under the umbrella of Oodua Self Determination Groups, on Tuesday, in Lagos State, held a joint press conference to declare its support for President Bola Ahmed Tinubu on his decision to withdraw the vexatious subsidy on the petroleum products saying the step was for the interest of the masses of Nigeria.

Addressing the press at the Lagos airport Hotel on behalf of other seven leaders of the groups that make up the coalition, Comrade Razaq Olokoba, congratulated Nigerians on the survival of democracy in the country for seven unbroken transitions through well-organized elections for 26 years peacefully.

However, while saluting Nigerians on the feat and congratulating the new President, Bola Ahmed Tinubu and his Vice, Senator Kashim Shettima on their electoral victory on February 25, peaceful handover and successful inauguration, the Coalition warned, that “we cannot be careless because eternal vigilance is the price of liberty.”

Dwelling into the state of the nation, Olokoba said. “It is in the light of this that we must situate and address the current state of our nation because of the fact that, this two week old government, will need the support of everybody, to settle down without distractions into the job of building the economy and commonwealth of Nigeria.”

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Speaking on the business of fuel subsidy and its removal, the Coalition went down the memory lane to say, “As far back as during the campaigns, Asiwaju Bola Ahmed Tinubu made no pretense that he would muster the political courage and the will to take tough and hard decisions and one of such hard decisions concerns the issue of fuel subsidy.

The press statement continued, “For this year 2023, Nigeria budgeted N11 trillion of its oil revenue on subsidising petrol alone. This cannot continue. This is good money going down the drain, with little or nothing to show for it. This huge amount can be channelled into solving our several deficits, including: Infrastructural, housing, education, healthcare, and generally upgrading the quality of life for Nigerians. It will also help strengthen the naira.

“So, to keep the pump price of petrol at N165/litre, the Federal Government currently spends above N600 as subsidy on every litre of fuel consumed in Nigeria. Our daily petrol consumption in Nigeria is 66.8 million litres. Therefore, petrol subsidy costs the government N40.1 billion every

single day and N1.243 trillion every month. Due to this subsidy, Nigeria’s economy that depends 90 per cent on petroleum exports for its revenue, and one-third of its GDP, has been recording zero revenue from the sector.

“Tinubu has said that he inherited the assets and liabilities of the last regime. Nigeria currently owes massive local and foreign debts to the tune of ₦71 trillion. That is our reality, the Coalition lamented.

Another reality, according to the groups is that if Nigeria fails to kill subsidy, subsidy will kill wondering that since year 2000, when the Nigerian government gave about 20 refinery licences to private companies, not one refinery has been built, apart from Dangotes?!

Continuing, Olokoba observed that, the reason for that is simple because investors and licence- holders found they could not recover their investments due to the artificially low price structure caused by fuel subsidies asserting that, “Total deregulation of the oil sector is the way to go.”

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NNPC ended up being the sole importer of fuel to Nigeria because other major importers boycotted importation as the pricing mechanism became either unrealistic or profitable, the Coalition observed admonishing that, “In the spirit of free enterprise, we need to let the market dictate and consumers have a choice of purchase.”

Competition, not monopoly, will bring about lower prices, the statement submitted, warning that, “the monopoly of fuel importation by the Nigeria National Petroleum Corporation (NNPC) alone must be discontinued.”

While drawing references from TELECOMS to support their claims, the groups had this to say: “If prices appear to be on the high side today due to deregulation, the situation can only be temporary. We should borrow lessons from the telecommunications industry. When the market opened, people bought SIM cards for as much as N50,000. In the face of stiff competition within the GSM industry, SIM cards today cost no more than N150, and sometimes free-of-charge. This will happen in the oil industry.

“We must see NNPC as the equivalent of the NITEL in the telecommunications industry. NNPC monopoly is one factor leading to high cost of petrol. In reality, Nigerians are paying for the greed of a cabal on the altar of corruption. Subsidy must go!” the Coalition insisted.

On the threat of industrial actions, he joint Oodua Self-Determination Groups speaking on behalf of the Yoruba people advised strongly that, no part of the South-West shall be available for any fuel-subsidy unrest or other unrests, admonishing that, “the proposed protests and civil disobedience over the fuel subsidy should be suspended immediately, while dialogue continues and the government is allowed to come up with lasting solutions that will drive the development of Nigeria and the welfare of the citizens.”

The Coalition, therefore, urged and pleaded with the Nigerian workers, under the umbrella of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), to sheathe their swords and give peace a chance.

“Let us give the new government a chance. The President has already begun the most robust move, since 1999, to put the refineries in order and bring them back to work. The Port Harcourt Refinery will roll out products before December. In addition to that, the government also plans to dish out palliatives to 50 million Nigerians through a cash-transfer programme targeting the poor to cushion the effect of zero-fuel subsidy. Moreover, plans have been set in motion to upgrade the minimum wage from the current N30,000 to a higher figure,” the Coalition pleaded.
In conclusion, the groups insist they will continue to maintain that the system of
government in operation today under the 1999 Constitution remains unsustainable, urging President
Bola Ahmed Tinubu and his party-APC- must make it their priority to commit to the Restructuring of Nigeria into a true Federalism.”