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Fuel price hike palliatives
IN the wake of the recent hike in the prices of petroleum products, the fifth time in five years, and the protest
by the Nigeria Labour Congress (NLC), the Federal Government promised to institute relief measures to cushion its
effects.
To demonstrate its seriousness, it quickly set up a multi-platform committee, the Independent Co-ordinating Committee
for Cushioning Measures on the Increases in Prices of Petroleum Products. The committee is headed by Deputy Senate
President, Ibrahim Mantu.
The committee which was set up on October 11 sat for barely two weeks before turning in its report to the President.
Following the submission of the report, the Federal Government on Friday, October 29 under the aegis of the National
Economic Council reeled out relief measures which it said would cushion the harsh effects of the hike in fuel price.
The measures include a reduction of duties on buses and commercial vehicles from 22 per cent to 10 per cent as
well as slash of duties on drugs from 20 per cent to five per cent.
Part of the palliatives also include provision of a minimum of N100 million as grant by the Federal Government
to each state plus Abuja with a 200 per cent matching contribution by each state government for lending to bonafide
transport owners or operators at an interest rate of not more than three per cent.
According to the Federal Government, some highly populated states like Lagos, Rivers, Kano, Oyo and Abuja would
get N200 million each while their respective governments would contribute N400 million. The cumulative amount which
stands at N11.1 billion would be deducted from the excess crude oil fund.
The palliative measures quickly released by government may have confirmed the earlier fears and reservations expressed
by Labour and Nigerians that the composition of the committee was suspect. The committee has more members drawn
from the Presidency than independent bodies of stakeholders in the society.
The suggestion by Labour leader, Adams Oshiomhole, that the committee be expanded to include members of the civil
society was hushed thus raising anxiety among Nigerians that the committee�s recommendations would fall short of
expectation.
Again, by coming out with N100 million grant-in-aid to each state, the government has also confirmed the fears
that it is not exactly in tune with the lend of privation and need in the land. The palliatives as reeled out are
across as a painful mockery of the realities on the ground. The announced relief measures appear like an attempt
to divert the attention of the people from the real issue at stake, to wit, the high and contentious prices of
petroleum products.
It beats the imagination to conjecture what N300 million would do to a people already famished, bruised and broken.
Even for those sceptical about the outcome of the committee�s deliberations, there was some expectation that government
would through it make far reaching decisions that will directly and positively affect people�s products said welfare.
Of course, a reduction in the prices of the petroleum product remains the demand of the people.
In addition to a middle course review of the prices, the expectation has been that government should also address
pivotal issues like housing, roads, food, electricity, school fees and general infrastructure.
The recent increases in the prices of petroleum products have gone a long way in increasing the economic burden
of the people and sentencing many to the class of the poor. The strident cry over the increase in the fuel prices
is a cry from the heart by the people.
The Federal Government�s plan to handover any palliative funds to state governments for onward disbursement to
transport owners and operators is not just begging the issue, it is way beside the point.
By using state government machinery which in clear terms translates to politcal party machinery, there is no guarantee
that the money would get to those who need it. There is the overwhelming likelihood that politicians and the foxes
in the bureaucracy would feast on the money in the same manner they abused the masses-oriented Peoples Bank of
Nigeria, the Federal Urban Mass Transit Authority (FUMTA), the Poverty Alleviation Programme (PAP) and sundry people-friendly
initiatives of various governments, past and present.
Already the NLC has distanced itself from these recommendations because it appears that government had abinitio
made up its mind on what it wants to do long before the committee was inaugurated.
By washing its hands of the recommendations and alerting Nigerians to an imminent indefinite strike starting from
tomorrow, November 16, it means that we are merely going through the motions on a key issue that touches on the
nerve of our national life. This is why government must act fast to head off the impending crises which if not
nipped in the bud may throw up dire and far-reaching socio-economic consequences.
To do this, we urge the Federal Government to go further than its marginal reduction in the price of kerosine.
It should summon courage to review downward the prices of other key petroleum products.
We believe there can be a meeting ground between government and Labour.
There is also an urgent need to ensure that the four refineries perform at optimal capacities, whatever that may
be. This way, we will cut down on the quantity of imported fuel. Again, government should initiate policies that
would discourage importation of fuel while encouraging its export. This it can achieve by asking major marketers
and other stakeholders to build their own refineries within a stipulated time frame in the same manner it asked
GSM service providers to manufacture their recharge cards locally with effect from next year, of course with attractive
incentives.
The on-going fuel price hike impasse presents government an auspicious opportunity to identify with the peoples
direct needs in its return policies.
© 2004 @ Champion Newspapers Limited (All Right Reserved).
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