FUEL SUBSIDY REMOVAL;A MUST !

“The federal government of Nigeria spent 300 billion dollars an equivalent of N 1.3 trillion on fuel subsidy annually”. The governments’ve been campaigning on energy subsidy reform which mandated the removal of petroleum subsidy on the grounds that such subsidy only benefits a few member of the private sector, the cartel in the oil industry while the subsidy is inimical to the government and Nigerians. Although the subsidy removal may cause limited hardship like hike in petroleum prices, increase in transportation fare actually it will ensures economy consolidation by providing infrastructure; employment generation, improved standard of living and also improve the security of the nation.

Provision and maintenance of infrastructures are basic need of the people. Functional hospitals and health centres must be provided to meet the medical need of the people. Good road construction to facilitate both movement of persons and goods especially from the rural areas to the urban centres must be accessible. Also constant electricity supply as a source of power generation for industrial and household consumption which in turns improved the economy of the nation. These necessities are achievable if there is proper funding of these sectors.

Employment generation is a vital programme of every responsible government. Agriculture remains the largest employment of labour and engages seventy percent of labour.It is the source of essential food production and a major role as an engine for economy growth and employment. The money for subsidy should be channel to this direction and other sectors such as textile industry, entertainment and more so as to engaged the unemployed. Agricultural grants should be increase so as to provide improved seedlings; increase in agricultural produce and also research funding.

However, sequel to the proposed plan of subsidy removal by government, the Nigeria Labour Congress; Nigeria Labour Union, Senior Staff Association of Nigeria Polytechnics (SSANIP), Campaign For Democracy and other activist groups have opposed the proposed subsidy removal by government that such decision is premature and will only bring an untold hardship on Nigerians, increase in transportation fare, and worsen the security situation of the nation.

Finally, the oil subsidy is inimical to the government and Nigerians but only favours a cartel in the oil industry. Such removal will be channel to other areas and consolidate the economy by providing infrastructure like good road to facilitate goods and movement; equipped standard hospitals and constant electricity supply. Also standard of living of the people is improved, employment generation and proper security is assured in the nation. Fuel subsidy reform encourages foreign investors and the oil sector will be competitive like the telecommunication sector.