Participants at a one-day national roundtable discussion organized by the Chartered Institute of Transport Administration of Nigeria, (CIOTA) on fuel subsidy removal at the weekend reached a consensus that there will never be a good time to remove the fuel subsidy than now but government must employ appropriate tactics and strategies to ameliorate the effect on Nigerians.
The association also pleaded with labour and government to negotiate having the suffering Nigerian masses at the back of their minds and strike a deal that will be beneficial to all.
The theme of the roundtable discussion was: “Fuel Subsidy Removal Conundrum: National Consensus on Removal but Cacophony on how to achieve it.”
The President and Chairman of Council, CIOTA, Prince Segun Obayendo said the reason for the programme was to find solution to the effect of the subsidy removal as well as solutions on the issues that may arise from the decision.
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He explained that the subsidy on fuel was introduced in 1977 to alleviate the effect of global fuel price that was on then.
“The country then I am sure must have felt this is the best way to assist people but after a long time it became an instrument of helplessness to the same masses, he said.
He pointed out that attempt to remove it before now during the past regimes has brought up strikes except during the Buhari administration.
“Now we have a new government and from day one the announcement was made and since then our lives are not the same.
“In as much as we wish the government well and we want it to succeed, we want solution to the crisis the removal of subsidy can bring and more especially reduce the stress on the masses,” he stated.
The lead discussant at the programme, Prof, Samuel Odewumi, a Professor of Transport and Logistics, in his paper titled, ‘Towards Getting out of the Fuel Subsidy Removal Quagmire’ said as government and labour start negotiation on the way out of the fuel subsidy removal, they should give the negotiation a chance overlooked by the seemingly hasty declaration of “Subsidy is Gone” but rather take notice of the massive disruption of the socio- economic activities of the country and consequent agony to be inflicted on the masses and present its log of demands in substitute for price reversal and put government on their toes to implement it.
He however added government must earn the trust of labour by implementing whatever is agreed and No ASUU treatment.
Odewumi who is also the Chairman, Road Sector Committee of CIOTA also advised that the team must embark on continuous talk until agreement is reached and must avoid strike by all cost because any protest could be hijacked., therefore negotiations must not be allowed to breakdown.
Listing what should be avoided during negotiation, Adewunmi said fixing any other price level rather than full deregulation, with multiplicity of importers, free non-transparent “hands out” to the so called poor, usually just a gift to the political supporters/thugs, cash transfer/market money with opaque selection criteria, hurried disbursement of the $800m world bank loan, threatening language from the side of government and any form of harassment or intimidation of union leaders should be avoided.
He also want government to consider reversal to old price till the end of June.
“Labour to present its table of demands Government to identify and implement those that it can implement immediately like hardship allowance for workers. Negotiation to continue unbroken with a standing team on both sides and this should be considered in the interest of the nation and our seriously sick dear fatherland.
For negotiation with marketers, the Professor said there should be continuous engagement to ventilate their challenges both financial or logistics and working together to develop templates to deal with them.
“Be assisted to invest more in their depots, distribution fleets and dispensing infrastructure; protect them from the extortion of law enforcement agencies, and illegal local governments’ tax and levy collectors and Agberos,” he said.
Speaking on the strike protest threats and the way forward, the Adewunmi said the strike threat is real and looming for Wednesday but the issue now is how to avert it and still achieve the national consensus of subsidy removal.
“My first plea with labour and government is to enter the negotiation room today with the suffering of Nigerian masses at the back of their minds and strike a deal.”
He added that the government can negotiate with Dangote, “however, if the price will be more than N350/litre the government should consider selling crude to Dangote at a calculated subsidy that will ensure he delivers to Nigerians below N350/litre benchmark”
This he said will amount to transferring subsidy to production not consumption and this arrangement should be in place in the short run for a minimum of six months to allow the in-coming government and the refinery to stabilise.
Speaking further, Prof Odewumi said post-subsidy removal should focus on areas of direct the savings which include Education: Infrastructure, Health Power/Energy: Multimodal Transportation Infrastructure; ICT Support and Agricultural Hubs support and price guaranty.
In his presentation, Dr. Kayode Opeifa, Executive Director, Centre for Sustainable Mobility and Access Development and Former Commissioner for Transportation. Lagos State urged Nigerians to accept the reality and look for solution for its effect on the economy.
“There is no need to discuss what has been done but the way forward and this is to find ways to keep out of poverty by improving on the transportation system within the state and interstate for easy access for people.
For Dr. Mercy Ilori, Director Transport Planning and Coordination, Federal Ministry of Transportation, Abuja, fuel subsidy is not sustainable and it must be removed and that was why the president removed it.
She added that instead of tackling government on what it has already been removed, “we need to have holistic approach to solve the problem that may arise from the situation.
“What we need is a lasting solution to the problem that has been plaguing us, the reality is here and it is time we advise the government properly on how to reduce the effect on the citizen.”
She advised that other investors should be allow to come in to avoid monopoly so that there will be a level ground for competition when it comes to fuel in the country.
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