The Executive Director of Civil Society Legislative and Advocacy Centre (CISLAC) Auwal Ibrahim Musa Rafsanjani, has said that the President Bola Ahmed Tinubu-led federal government was taking Nigerians for a ride.
Rasfanjani, in a statement made available to journalists in Abuja on Tuesday, said the government is clearly insensitive to the plight of the growing number of Nigerians slipping into poverty daily as a result of its harsh policy directions.
During his inauguration ceremony, President Tinubu had declared petrol subsidy gone, leading to a quick increase in the pump price of fuel from N197 per litre to N537.
Auwal said the government has so far demonstrated by the very policy it has rolled out, that its programmes are not people-friendly.
According to him, the government has been inconsistent in the application of its “austerity measures” as it is pursuing outrageous, unsustainable, unjustifiable and reckless spending at the expense of the welfare of its citizenry.
He said Nigerians still remain the ultimate burden bearers of the government’s failure to take effective preliminary, decisive and demonstrable actions towards addressing oil and gas sector challenges.
He lamented that the citizens have been taken for a pain ride and lied to at every step of the way by various beneficiaries and stakeholders in the value chain.
He explained that on 1st June 2023, the Group Chief Executive Officer, Nigerian National Petroleum Company Limited, Mele Kyari, in response to the rising prices of PMS, alleged that competition among major players in the oil sector would force down the price of petrol as against the upward trends that have caused panic in the country.
He said similarly, in trying to allay the fears of citizens, the Independent Petroleum Marketers Association of Nigeria (IPMAN) on the 1st of July 2023, denied the alleged plan by the association to increase the pump price of Premium Motor Spirit (PMS), also known as petrol, to N700 per litre nationwide .
“The recent increase in petrol prices has been attributed to an increase in crude oil prices in the international market, with Brent crude benchmark price surpassing $80 per barrel; as well as the increase in the Dollar to Naira exchange.
“Why are there no corresponding adjustments in prices when these factors go in the opposite direction? So far, out of over 56 companies that applied for import licences to bring in petrol, only 10 made commitment to import, and only 3 have imported petrol into the country.
“What are the underlying drivers of this low investor response, that should drive competition and force down the price of petrol?
“In January this year, daily petrol consumption was 62 million litres; February, 62 million litres; March, 71.4 million litres; April, 67.7 million litres; May, 66.6 million litre; June, 49. 5 million litre; and now 46.3 million litres, a 35% reduction.
‘While this suggests reduced demand, it does not suggest a reduced dependence on it. Less people can afford petrol to meet their transportation, home-powering and other needs, and Small and Medium-sized Enterprises (SMEs) are facing difficulties in accessing affordable power.
“This has huge implications for businesses which rely on refined crude products like diesel and petrol, respectively. Petrol and Diesel prices negatively and significantly affect manufacturing output in Nigeria.
“There are at least 39.6 million micro, small and medium enterprises (MSMEs) operating in Nigeria as of December 2020, accounting for 96.7 percent of businesses, 87.9 percent of employment, and 49.7 percent of national GDP.
“Totaling about 17.4 million enterprises, they account for about 50% of industrial jobs and nearly 90% of activities in the manufacturing sector, in terms of number of enterprises.
“The trade deficit of $20 million recorded in November 2022 from the low crude oil export receipts signalled the urgency to jettison petrol subsidy, develop local production capacity and end fuel import dependency for a favourable balance of trade.
“While it is true that no nation has control over the price of crude oil, several measures can be put in place to mitigate the effect of oil price volatility on the country’s domestic economic productivity. The current underutilization of Nigeria’s refineries impedes the country’s ability to meet local demand and its economic potential.
“Nigerians are yet to receive firm commitments, actions and timelines on the delivery of our four moribund refineries to optimal operations. Furthermore, the private and modular refineries have a refining capacity that will strengthen Nigeria’s refining sector, eradicate dependency on imported oil products and lead to improved crude export earnings.
“A major effect of the subsidy removal is its knock-on effect on prices of goods and services. Increased transportation costs due to the high fuel prices, directly impact agricultural production and have implications for food security.
“The government must show real concern and take urgent actions to cushion the effect of its decision which is perpetuating poverty and inequality. This is widening the country’s already-existing income inequality with low-income citizens and vulnerable segments of society facing greater financial strain to meet their basic food needs.
“We must build a democracy centered on public trust and accountability. Unfortunately, we have a history, practice and tradition that has encouraged the misconception of the government as the public’s master and not its servant and this notion must be reversed,” He said.
On his part, Spokesperson of the Coalition of Northern Groups (CNG) Abdul-Azeez Suleiman said the sudden increase in fuel pump price to about N617 naira per litre is certainly bound to pinch Nigerians particularly with its multiplier effect on commodities.
He said Nigerians must not rush to judgment given that we patiently endured the past administration’s initial lapses even with evident symptoms of failure until the time when it became glaringly evident that it was downright clueless.
He said he thinks it is too early in the day to judge the present administration without waiting to see what it says it has up its sleeves.
“I think the nation should not be in too much hurry in assessing and judging the Tinubu administration against incredible expectations and hopes; against fair standards of judgment, including the judgment from his political opponents, against developments and circumstances that no one knew the nation will confront, and even against the failures and abuses the nation is having to pay for from the previous administration,” he said.
