The Centre for the Promotion of Private Enterprise (CPPE), has urged the Federal Government to quickly initiate fiscal and monetary measures to mitigate the pains of fuel subsidy removal.
The Centre said it is the only way to reciprocate the gesture of organised labour, which chose the path of dialogue over strike, as such as action would have further exacerbated an already difficult situation.
The Director/CEO, CPPE, Dr Muda Yusuf, in his commentary on Sunday, also charged the Federal Government to ensure inclusive, impactful, and sustainable palliative measures.
He commended the Nigeria Labour Congress (NLC), and the Trade Union Congress (TUC), for opting for dialogue adding that Nigerians have demonstrated an incredible understanding, tolerance, patience, and resilience.
As such, he said the government cannot afford to overstretch the gesture or to be perceived as taking them for granted, as the pains inflicted on Nigerians, especially the vulnerable segments of society, are very severe.
He said: “The sufferings are real and affect the citizens across all segments of our society – public service, private sector, informal sector, artisans, students, SMEs, the unemployed, the aged, pensioners etc.
“There is, therefore, a need for urgent responsive actions from all tiers of government. The mitigating measures should be holistic and inclusive and should be driven by a combination of direct interventions, fiscal policy measures, and monetary policy actions.
“Hardship mitigating measures could be classified into immediate, short term, medium and long term. Such responses would send the right signals to citizens and demonstrate the government’s sensitivity to the devastating impact of the subsidy removal on the poor.”
The sufferings are real and affect the citizens across all segments of our society – public service, private sector, informal sector, artisans, students, SMEs, the unemployed, the aged, pensioners etc.
Inflationary effects
Yusuf further noted that transportation costs have risen by between 20 and 50% and the attendant inflationary effect is already posing a threat to the livelihood of many, both within and outside the public sector, as wage earners, small business owners, informal sector operatives, artisans, and the unemployed are all very vulnerable.
“This is the context in which the government needs to urgently respond to the current crisis, focusing on the scope of impact, effective targeting, inclusion, and the right messaging.
“Immediate panaceas need to be activated, not just with respect to transportation costs, but the surging cost of living generally. The agreement signed with labour did not reflect the desired urgency of the mitigation measures. It is also scanty on immediate actions and quick wins, which are needed to immediately assuage the feelings of ordinary citizens and stabilize the social environment.
“Meanwhile, beyond the documented demands of the labour unions, the CPPE is recommending the following interventions in the interest of social justice and social stability,” Yusuf explained.
Direct interventions
Calling for direct interventions, Yusuf advised the NNPC Limited (NNPCL), to sell petroleum products at 10% lower than prices of other private sector marketers to demonstrate the desired social sensitivity by the government in this transitional phase of the subsidy removal.
“This is without prejudice to the new status of the NNPCL as a public Limited Liability Company,” he added.
Regarding the acceleration of the Presidential Power Initiative to upscale power supply in Nigeria, he urged that state governments and private investors should be supported to leverage the decentralization of power supply and off-grid power solutions.
He advised that the power improvement strategy should be implemented immediately to reduce the demand for petroleum products for the purposes of electricity generation by households and businesses.
In particular, he insisted that “Government must put an end to the pricing of gas in dollars for domestic use, especially for manufacturers.
“The government must take necessary urgent steps to put an end to this dollarization framework to ensure moderation in energy costs for the manufacturing sector.”
