The Organised Private Sector of Nigeria (OPSN) has urged the Federal Government to take steps to address any socioeconomic issues that may arise as a result of the proposed removal of fuel subsidies.
Mr Taiwo Adeniyi, Chairman of OPSN, announced this at a news conference in Lagos on Tuesday.
According to Adeniyi, the controversy over the proposed removal of fuel subsidies was reaching a “crescendo,” necessitating the need to guide the government and other stakeholders.
“We urge the government to address the following as a prerequisite to the total removal of the subsidy as a matter of boosting Nigerians’ and other stakeholders’ confidence and demonstrating its goodwill:
“The resuscitation of the four refineries in which millions of dollars had been invested in Turn Around Maintenance or the outright sale of the refineries to private investors in order to improve their sustainability.”
“In addition, specific reliefs to address the expected drastic reduction in citizens’ disposable income and standard of living.”
“An increase in fuel prices is expected to have a direct and immediate impact on transportation and food costs, among other things: a more sustainable, well-thought-out relief should be proposed.”
“Specific relief to workers and organized businesses, not just to mitigate the immediate effects of the increase, but reliefs that will ensure and enhance businesses’ capacity to remain sustainable and continue to provide jobs,” he said.
The OPSN urged the government to engage key stakeholders, including employers and organized labor, in order to develop a more realistic strategy to mitigate the effects of the subsidy removal on workers, employers, and Nigerians in general.
He also stated that previous efforts to provide palliatives had proven to be shallow and unsustainable.
“We assert that removing fuel subsidies based on the argument of international oil prices and other parameters without taking into account the context of those climes is unrealistic within the context of our environment.”
“The nation cannot afford any form of economic disruption or industrial disharmony because it could spell the end of many organizations,” Adeniyi said.
The chairman expressed concern about the government’s recent announcements about reintroducing the excise duty on carbonated beverages.
He stated that the economic situation that necessitated the suspension of the excise in 2009 had not improved, and that businesses are now facing greater hardship than they did in 2009.
“The imposition of the tax will be counter-productive because it will further suffocate businesses in that industry.”
“As a result, we urge the government to abandon the idea of reintroducing the excise duty on carbonated beverages.”
“However, it should continue to support and promote the industry in order to achieve full recovery after the pandemic’s onslaught.”
“Also, position the industry to accommodate the teeming unemployed Nigerians, particularly the youths,” Adeniyi added.
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