Business Oil & Gas

Centre for Justice Development advocates gradual removal of petroleum subsidy

The lead director of the Centre for Social Justice (CSJ), Mr. Eze Onyekpere, has demanded that Nigerian subsidies be gradually eliminated.

At the Public Policy Dialogue and Unveiling of Partnership for Amplified Voices (PAV) in Abuja, Onyekpere made the announcement.

The director stated it was time for drastic action to be taken on subsidy. The director was the keynote presenter of a paper titled “Fuel Subsidy and Nigeria’s Future: Looking Back, Thinking Ahead.”

According to Onyekpere, 50% of the subsidy might be eliminated in the first year and the remaining 50% in the second.

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Onyekpere suggested that more steps could be taken to ensure the process’ success.

“Government should engage organised labour, private sector and the public with relevant information and design a social intervention programme to cushion the hardship in critical sectors like transport, agriculture, food.

“Government should also take steps to conclude the revitalisation of existing refineries and thereafter run them efficiently.

“In the alternative, government should concession or privatise them after the repairs and turn-around maintenance.

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“The proposed private sector participation should be done under a process that is transparent and that guarantees value for money.

“It should also ensure that the firm has technical, financial and managerial capacity to run the refineries.

“On no account shall a firm taking over the management of the refineries be allowed to engage in asset stripping.

“Government should also transparently support Dangote Refinery to start production at the earliest time.”

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Regarding the debates around actual Premium Motor Spirit (PMS) use, the director suggested that the government launch a transparent and open public investigation.

He also demanded action against oil theft.

“The Nigerian people have been massively wronged and robbed and as such need a remedy through prosecution and conviction of offenders.

“Also, there should be recovery of stolen resources, compensation, apology and guarantees of non-repetition through system strengthening,” he said.

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Participants in the debate, including the World Bank Country Director and a CODE (Connected Development) representative, all contributed their opinions.

Other participants in the event included Civil Society Organizations (CSOs), the Nigeria Union of Journalists (NUJ), and the National Association of Nigerian Students (NANS).

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