Around 82 civil society organizations (CSOs) working under the umbrella of the “Civil Society Coalition for Economic Development (CED)” have applauded President Muhammadu Buhari’s plans to end Nigeria’s subsidy regime.
The coalition made the remark in a seven-point communique issued at the conclusion of the Coalition’s conference in Abuja on Friday.
The coalition said in a communique signed by the convener, Yusuf Dan Maitama, and the Secretary, Badaru Ayewoh, that it was a good step in the right direction.
The coalition stated that the subsidy regime was unsustainable and that the best way to address the issue was to eliminate subsidies.
According to the communique, the conference, titled “Fuel Subsidy Removal in Nigeria,” was purposefully chosen in light of current realities.
He stated that if the money spent on fuel subsidies was channeled into infrastructure and other social sectors of the economy, there would be growth and development.
They also suggested that the fuel subsidy program be phased out beginning in January 2022.
They claimed that the subsidy regime was a major challenge, forcing the federal government to borrow from outside sources.
“The resource persons, who are world-class researchers in the oil and gas industry, extrapolated issues related to Nigeria’s oil and gas industry and identified Nigeria’s major economic challenges as an active fuel subsidy regime.”
“Participants agreed unanimously in group discussions that Nigeria was the only country in the world that had maintained a fuel subsidy regime for the past 20 years.”
“Because the fuel subsidy regime was a capitalist and elitist policy that benefited only the wealthy, successive governments struggled to implement their economic policies.”
“It was pointed out that the federal government spends N250 billion per month on fuel subsidies.”
“The development, debaters claimed, was largely responsible for national debts because revenue coming into the Consolidated Revenue Fund (CRF) account is used to settle fuel subsidies.”
They pleaded with organized labor not to go on strike as a result of the end of subsidies.
The group urged the federal government to submit a budget for N5000 grants to be distributed to citizens in order to mitigate the impact of the removal of fuel subsidies in 2022.
Due to the obvious financial burden orchestrated by the subsidy regime, the Federal Government of Nigeria should end the fuel subsidy regime on January 1, 2022, in order to save N250 billion monthly.
“Because Nigeria is a monolithic economy, revenue earnings must be guarded with zeal and channeled into road construction, power, education, health, and youth development.”
“Organized labor should exercise caution and refrain from going on strike now that the federal government has ended the fuel subsidy regime, given the reversal of vast resources back into federal government coffers.”
“The Federal Government and all stakeholders in the oil and gas industry must strictly enforce the provisions of the Petroleum Industry Act (PIA), which became effective after President Muhammadu Buhari signed it into law.”
“The federal government, private and public sectors should start sensitizing Nigerians about the need to remove fuel subsidies immediately in order to save the country from further financial hemorrhage.”
“The federal government of Nigeria should forward to the two arms of the National Assembly for legislative debate before the passage of the 2022 budget a budgetary provision of N5000 grant to citizens to cushion the effect of fuel subsidy removal.”
“The Civil Society Coalition congratulates the Group Managing Director of Nigeria National Petroleum Corporation (NNPC) Limited on his dedication to the stability of Nigeria’s oil and gas industry.”
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