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PENGASSAN distances self from fuel subsidy removal

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By Victor Ebimomi

 

Members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have distanced themselves from the fuel subsidy removal planned by Abuja, to which all governors have reportedly agreed.

PENGASSAN President Babatunde Ogun insisted that the body is not part of it because “Labour has not been properly engaged by the government” to get a clear picture.

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He said all stakeholders should discuss and the government has to look for a proper solution before fuel subsidy can be removed, so that the masses would not suffer.

The money has to be used for poverty and infrastructural development and poverty alleviation.

 

The Academic Staff Union of Universities (ASUU) has equally voiced its opposition to fuel subsidy removal unless the knotty issues in the petroleum industry are resolved.

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ASUU National Treaturer, Ademola Aremu, made the point while delivering a lecture, “Clamour for fuel subsidy removal: In whose interest?”, at the pre-May Day lecture organised by the Oyo State chapter of the Nigeria Union of Journalists (NUJ) in Ibadan.

 

He described the plan as ill-advised, arguing that subsidy cannot be removed from fuel without tackling other policy and socio-economic issues.

 

In his view, “the starting point of this would be the removal of opacity, which has become second nature to oil business in Nigeria, albeit a general characteristic of the business all over the world.

 

“This could only be achieved through government’s accountability to its citizens.”

Aremu wondered why the government should expect the public to support its action when there is mistrust.

His words: “Is it possible for the government to give a near estimate of the crude oil being explored in Nigeria on daily, weekly or other such periodic basis?

“Can Nigerians be made aware of the amount of money invested in refining the crude oil being produced? Can the memorandum of understanding between the international oil companies and the Nigerian government be made public with the rules of engagement stated in black and white?”

He said these are some of the important questions to be asked in ensuring that subsidy removal would be accepted by Nigerians and yield the desired effect. “But such a move can only be supported by the citizens if this were a people’s government.”

 

Fuel subsidy removal is a tetchy point in Nigeria, the world’s sixth largest oil producer.

When the government tampered with it in January 2011, there were protest across the land as the public groaned under a 100 per cent increase in transport fares.

This corresponded with a rise in fuel pump price from N65 to N141 per litre in urban areas and between N150 and N180 in semi urban and rural areas.

 

It was reported last week that no governor opposed fuel subsidy removal at the FAAC (Federal Account Allocation Committee) meeting in Abuja.

 

Investigation by TheNiche showed that many Nigerians will not oppose the removal of fuel subsidy if the funds will be used to develop infrastructure.

 

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