http://tribune.com.ng/index.php/front-page-news/33882-reversing-subsidy-policy-suicidal-for-economy-fg-insists-announces-palliative-measures-revert-to-n65-per-litre-or-face-strike-from-monday-nlc
•Announces palliative measures
•Revert to N65 per litre or face strike from Monday - NLC

Written by Leon Usigbe, Soji-Eze Fagbemi and Chris Agbambu, Abuja Thursday, 05 January 2012

AN emergency session of the Federal Executive Council (FEC) convened by President Goodluck Jonathan, on Wednesday, resolved to expedite action on the implementation of palliative measures to cushion the harsh effects of petrol subsidy removal, with government maintaining, however, that reinstating the subsidy would  have grave consequences on the economy.

Among the measures to provide immediate succour is the procurement of 1,600 diesel-powered 50 passengers and above capacity buses through a Public Private Partnership (PPP) N10 billion revolving loan deal attracting five per cent interest and repayable within five years.

The initiative, which is coming under Urban Mass Transit Programme, would see the buses distributed to credible transporters, including the Nigeria Labour Congress (NLC), Trade Union Congress (NLC), National Association of Road Transport Owners (NARTO), among others, as government hopes to reduce the cost of transportation.

The Minister of Information, Labaran Maku, who was joined by his Trade and Investment and Transport counterparts, Dr Olusegun Aganga and Senator Umar Idris, told State House correspondents, during a post-FEC briefing, that the president had directed ministries, departments and agencies (MDAs) to pay January salary by the 20th of this month to alleviate suffering.

Towards this end, he has ordered the Federation Account Allocation Committee (FAAC) to fast-track its January meeting to the 15th to enable the salary to be paid by this date.

Maku, who stressed that the present harsh effects of the subsidy removal would be temporary, noted that the failure to completely deregulate the downstream sector of the petroleum industry by past leaders had brought the economy to near collapse as government had continued to borrow to service debts.



As an indication of the resolve of the administration to implement the total deregulation in the face of pressure from labour and the general public, Maku pointed out that "having taken this plunge, to go back will be to cripple the economy. That is why we are calling on our citizens to bear with us.

"In no time, the prices of (goods and services) will come down. Unlike in the past, when marketers used to hoard fuel because the government was subsidising, that would no longer be the case. The customer will be king now because if they don't sell, they won't recover their money."

The minister explained that the country was going through a difficult situation and appealed to citizens to show understanding, as the government would not deliberately punish them, saying, "with measures  we have taken, we are confident that we will correct the imbalance in the economy."

According to him, "there is no way a country can survive with N5 trillion debt and uses N500 billion to service the debt. The entire capital budget is completely borrowed and if it continues, the economy will collapse and companies will be forced to cut workforce."

Also speaking on the declaration of strike by NLC, the Information Minister warned that strike would do greater harm than good, because "it will further compound the suffering of the people."

Th Minister of Trade and Investments  appealed to Nigerians to understand that they had given the present government the mandate to fix the country, saying that even though the decision to deregulate was painful, it had to be taken, but that the government, which he emphasised would not inflict punishment on the people, had the obligation to cushion the effects.

In his contribution, the Minister of Transport spoke of efforts to revive the railway and water transportation sectors in the county to provide services for commuters, noting that rail transportation had re-commenced in parts of the country, while efforts were ongoing to extend it to other parts.

Meanwhile, the organised labour declared, on Wednesday, that there would be “no retreat, no surrender.”

[size=20pt]Written by Leon Usigbe, Soji-Eze Fagbemi and Chris Agbambu, Abuja Thursday, 05 January 2012[/size]

Lasinoh:

Jona boy will reverse the subsidy soon. . .
After Nigerians have been ripped off.
Within six months. . . you wanno bet?

Good campaign strategy.



Haba!!!

'Ow many pipo dey write this small letter?
Na so 'subsidy' pain them reach?
WAZOBIA group of editors kwa nu?