In light of impending massive job loss, FG is advised to review its policies.

The Federal Government has been advised to review its policies in view of the problems created with their implementations, especially with the reports that many Nigerians will likely suffer job loss if nothing is done urgently.
Recall that since President Bola Tinubu announced the removal of fuel subsidy in May 2023, PMS prices have gone up by about 488 percent, from N175 to over N1,000 by October 2024.
According to the data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, fuel consumption dropped to 4.5 million litres per day in August 2024, from 60 million litres per day in May 2023, which represents 92 percent decline.
There are also reports that oil marketers have expressed concerns over significant losses, with about 10,000 oil dealers about to shut down.
Speaking with Daily Independent, Comrade Femi Lawson, Executive Director, Centre for Public Accountability, noted that there should be a review of the policies to the extent that while the country tries to save money it shouldn’t end up crippling the economy.
He said, “If we say we want to save money in the name of subsidy removal and we now cripple our economy to the extent that the average marketer cannot work and some people have to lose their jobs and so many other issues, I think we may be seen as penny wise pound foolish as a nation.
“Every country in the world subsidizes. In the UK, there’s a subsidy on electricity, in Saudi Arabia, Kuwait there are subsidies on PMS. These are countries that produce larger quantities of crude oil than Nigeria. They should review this policy by considering the harsh economic reality.
“Government is aware of the ripple effect of various policies that are being implemented. The issue of subsidy removal has been on for a while. Even successive administrations have tried to completely remove the payment of subsidy on petroleum products unsuccessfully but the fact that the Tinubu administration has taken it upon itself being his first policy statement when he came on board on May 29, 2023, showed that the subsidy has been removed if we are to follow the words of the President. But now we have continued to battle with the effect of subsidy removal on PMS. We have been told that we no longer pay subsidy on diesel and kerosene but PMS being the most used of all the petroleum products in the country, removing subsidy on the product has exposed the economic effect, what Nigerians have been trying to avoid over the years.
“The removal of subsidy has exposed it to the extent that almost immediately that policy was pronounced, it led to skyrocketed levels of inflation in the market, the type we never expected. The removal of subsidies has led to the increase in the price of virtually all products and services in the country. When inflation has gotten to this level, people cannot meet with the basic needs of transacting businesses. It will lead to job loss because a lot of organizations won’t have the capital to further their businesses.
“As we speak, there is lots of uncertainty in the petroleum sector. Two days ago, the independent marketers asked the Federal Government for a subsidy of about N100 billion so that they can remain in business. So, despite the removal, it has shown that we will continue to battle with series of inflation and I think one lesson we must learn from this is the fact that rather than out rightly removing the subsidy like the president did even though he had a valid intention, one would have expected that the Federal Government will first and foremost block the loopholes that have been created over the years because the argument has been that petroleum products are being taken across the border. Nigeria is paying subsidies on products used by neighboring countries. It’s an indictment on us as a nation that our borders are porous, that tankers of petrol can be ferried across them while the Nigerian government is paying subsidy. I don’t think that the argument about the diversion of these products has ended because there is confirmation from all quarters about how people have continued to ferry the products across the borders.”
While corroborating Lawson, the national chairman of Action Democratic Party (ADP), Engr. Yabagi Sani, told Daily Independent that the government should act very fast to ensure that Nigeria doesn’t drift into another recession.
He said, “I read that about 10,000 filing stations are going to close shops because Nigerians have stopped buying fuel. According to them, the fuel consumption from 60 million per day has now gone to 4.5 million per day. Which means that subsidy removals are a very bad policy on our economy. If care is not taken, we’ll experience another recession.”
The immediate past chairman of the Inter-Party Advisory Council (IPAC) said, “The IMF is telling us that subsidies in Nigeria cannot be sustained. In Europe, the standard of living is very high, the cost of living is very low and over there some of these things are subsidized.
“Here, they told us that we can’t subsidize fuel. We have to do everything possible to take the government out of business. Government has no business in business. Until you look at the macro aspect of the economy and see how you can bring private initiative into it, we’ll continue to experience this vicious cycle,” he added.

Source: independent.ng

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