Subsidy removal: Shun superiority on negotiation table, experts warn FG

Add as a preferred source

The team representing the Federal Government in the ongoing negotiation with organised labour and other stakeholders to resolve the controversy surrounding the recent removal of fuel subsidy has been advised not to consider themselves superior on the negotiation table.

The Chartered Institute of Transport Administrators of Nigeria (CIOTA) and other stakeholders in the transport sector gave this advice as a consensus at the virtual national roundtable discussion put together by the professional body.

Speaking on the topic, “Fuel subsidy removal conundrum: National consensus on removal, but cacophony on how to achieve it,” the participants said government would need to properly handle the matter by ensuring that people who represent it on the negotiation table are honest and not speaking with double mouths.

They said government must be able to use the current fuel crisis to win the hearts of Nigeria’s populace particularly the downtrodden by using the funds freed on subsidy to improve their lots and also invest significantly in health, education, power supply and other social services.

They said enough of government voluntarily making agreements without fulfilling them.

The President of CIOTA, Prince Segun Obayendo, said it was even unfortunate that subsidy that was introduced to alleviate the suffering of the people in the 70s had now become a major source of their suffering.

He, however, expressed worry that fuel subsidy removal in Nigeria could most likely trigger increase in the smuggling of the product to the neighbouring countries where prices are higher and in effect compounds Nigeria’s problem.

Delivering his own paper, the Lead discussant and Professor of Transport and Logistics at the Lagos State University(LASU) Ojo, Samuel Odewumi, said it appears that most Nigerians agree to the removal of subsidy on fuel because of draining the country’s resources but that the hasty proclamation of the removal by the president without first engaging other critical stakeholders of the sector seems to be the problem.

He said it would even be better for government to subsidise fuel production than consumption as the former according to him would certainly boost employment generation and also lead to self-sufficiency of the product locally and equally for export.

He said government could partner for example, with the Dangote Refinery when in operation by supplying the refinery with crude oil to refine at subsidised price for the country.

He said such arrangement would certainly boost Nigerian economy appreciably.

He said in the interim, both government and the labour negotiation teams must be absolutely honest and sincere on reality and also continue to negotiate for a win-win situation for all parties and the entire Nigerian populace to laugh.

Other contributors at the forum, who include former National President of the Trade Union Congress, Peter Esele; former Corps Marshal, Federal Road Safety Corps, Dr Boboye Oyeyemi; Dr Kayode Opeifa and Prof. Innocent Ogwude, among others, also agreed that subsidy removal should remain but that the controversy emanated from the development should be well-managed to end in something that would improve Nigeria and peoples’ lives.

READ ALSO FROM NIGERIAN TRIBUNE