Wednesday, 18 May 2016

Why Nigerians Should Accept Removal Of Subsidy On Petrol


There has been a lot of opposing reactions and protests against the decision by the Federal Government of Nigeria to deregulate petrol price and marketing. The Nigerian Labour Congress and the Trade Union Congress have declared an indefinite national strike for Wednesday this week should the Federal government refuse to reverse the deregulation policy.
Here are some things Nigerians should be aware of in regards to the petrol price and marketing:
1. Over the years the four existing refineries have been performing poorly and unable to meet domestic supply of petrol, in order to meet the nation’s need for petrol the Federal government has to import petrol, regular and long-term importation of petrol has contributed greatly in depleting the nation’s foreign reserve and a weak and depressed naira.
2. The hope of getting new investors to build new refineries may be dashed if the deregulation policy on petrol is derailed by organized Labour and pressure groups. No credible investor would carry out massive financial investment in a business where profits would not be made.
3. Over the years the activities of unpatriotic Nigerians have compounded our woes making previous subsidy packages on petrol a huge waste, their activities include diversion of petrol products to neighboring countries, hoarding of products, refusal to sell at official price, and dubious claims for subsidy payments.
4. Nigerians would be able to buy petrol at a cheap rate when we have a stronger naira, this can be achieved when collectively work together to increase the number of products we export, import less, buying made in Nigeria products, use of local raw materials for manufacturing processes, eliminating money laundering, and patronizing Nigerian services.
5. Aborting the current decision on the deregulation of petrol price and marketing would only be postponing the evil day. The current state of foreign currency reserve at the Central Bank of Nigeria cannot support importation of subsidized petrol, we should expect recurrent fuel scarcity and cut throat petrol prices at the black market.
6. The argument and claim by a large number of Nigerians that as an oil producing nation, Nigerians should enjoy cheap petrol price. Those who hold this view should consider the huge financial investment put into crude oil production and refining of petroleum products.
Over the years successive Nigerian government has been unable to fully deregulate the price and marketing of petrol, once again we at that crossroad.

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