The federal government of Nigeria has planned that by 2022, the subsidy on petroleum will be removed completely. This means petrol pee litre will be sold not less than 300 naira or so.
The issue is that if the government removes subsidy completely, there is going issues of inflation because buyers have to start paying more on transporting goods to the market.
Although, it’ s believed that the government won’ t do something that will cause problems for the people, but if subsidy on petrol is removed, then they may sufferings among the people across the country. So government should look into into this with caution.
However, governors of the 36 states of the federation have agreed to back the Federal Government’ s plan to give poor Nigerians N5, 000 transport palliative, arguing that if the fuel subsidy regime continues, state government will be unable to pay salaries in 2022.
The Governor of Kaduna State, Nasir El- Rufai, disclosed this on Tuesday during the launch of the World Banks’ November 2021 Nigeria Development Update report in Abuja.
El- Rufai decried the high cost of fuel subsidy, which according to him, is not reasonable.
He stated that the Nigerian Governors’ Forum had met and agreed to back the Federal Government’ s transport palliative scheme.
He said, ” This is why the Nigerian Governors’ Forum met and agreed to support the Federal Government’ s social compact. Withdraw this subsidy by February, use the N250bn per month that would have been lost between February and May to do this conditional cash transfer that would put money in the pockets of Nigerians and alleviate not only the cost of transportation but the 2- 3 per cent job inflation that is expected when the subsidy is eliminated. We cannot sustain it. We cannot continue with it.
” I don’ t want to predict what will happen when 35 out of 36 states cannot pay salaries of civil servants, or even have any money to run the government. We will not have enough money to pay salaries. Already, some states are building up arrears, even oil- producing states are struggling to pay salaries.
” So, we support the plan to do conditional cash transfer for six to twelve months, N5, 000 a month to the most vulnerable households. This is the position of the state governments and I have been mandated to communicate this. ”
Earlier, the Federal Government had announced plans to replace the controversial fuel subsidy with an N5, 000 monthly transportation subsidy to the poorest Nigerians.
The issue now is that how can the federal government identify and pay 5000 naira transport support to the poor people? Believe it or not, many Poor people may end up not getting this money when the subsidy is removed.
The best thing to do is government should reconsider the thought of removing subsidy at this time that people are already facing serious challenges interms of high cost of living.