Fuel subsidy removal: Elites fight back to retain ‘illicit profits’ — President Tinubu

…Multiple exchange rate policy diverted monies to “elite of elite”

…identifies over 1trn savings from subsidy

…FG to provide N1billion credit facility at 9% per annum to 75 manufacturers

…hints on purchase of 3,000 units of 20-seater CNG-fuelled buses

…FG, Labour to meet again today

President Bola Ahmed Tinubu has revealed that elites in the country have been fighting back to retain illicit profits ever since subsidy was removed on Premium motor spirit (PMS).

In a nationwide broadcast yesterday, President Tinubu said, “For several years, I have consistently maintained the position that the fuel subsidy had to go. This once beneficial measure had outlived its usefulness. The subsidy cost us trillions of Naira yearly. Such a vast sum of money would have been better spent on public transportation, healthcare, schools, housing and even national security. Instead, it was being funnelled into the deep pockets and lavish bank accounts of a select group of individuals.

“This group had amassed so much wealth and power that they became a serious threat to the fairness of our economy and the integrity of our democratic governance. To be blunt, Nigeria could never become the society it was intended to be as long as such small, powerful yet unelected groups hold enormous influence over our political economy and the institutions that govern it.”

“The whims of the few should never hold dominant sway over the hopes and aspirations of the many. If we are to be a democracy, the people and not the power of money must be sovereign.”

He praised the Buhari administration for forseeing the looming danger amd making no provision in the 2023 Appropriations for subsidy after June this year.

“Removal of this once helpful device that had transformed into a millstone around the country’s neck had become inevitable.” He said.

Multiple exchange rate policy diverted monies to “elite of elite”

Commenting on the multiple exchange rate policy in use by the previous administration, Tinubu noted that the policy diverted money that should have been used to create jobs, build factories and businesses for millions of people.

“Our national wealth was doled on favourable terms to a handful of people who have been made filthy rich simply by moving money from one hand to another. This too was extremely unfair. It also compounded the threat that the illicit and mass accumulation of money posed to the future of our democratic system and its economy,” he lamented.

“I had promised to reform the economy for the long-term good by fighting the major imbalances that had plagued our economy. Ending the subsidy and the preferential exchange rate system were key to this fight. This fight is to define the fate and future of our nation. Much is in the balance.

“Thus, the defects in our economy immensely profited a tiny elite, the elite of the elite you might call them. As we moved to fight the flaws in the economy, the people who grow rich from them, predictably, will fight back through every means necessary,” Tinubu added.

…identifies over 1trn savings from subsidy removal

Giving a defence for the removal of subsidy, Tinubu said the administration “in a little over two months, we have saved over a trillion Naira that would have been squandered on the unproductive fuel subsidy which only benefitted smugglers and fraudsters.”

“That money will now be used more directly and more beneficially for you and your families,” the former Lagos State governor said.

“For example, we shall fulfill our promise to make education more affordable to all and provide loans to higher education students who may need them. No Nigerian student will have to abandon his or her education because of lack of money,”

Recall that in May 29th, Tinubu, in his inauguration speech, announced the removal of the petrol subsidy — a development that had led to a hike in the price of the product and untold hardship on Nigerians.

FG to provide N1billion credit facility at 9% per annum to 75 manufacturers

To further cushion the effects of the removal of subsidy, President Tinubu reeking out some of his proposed palliative measures said that the Federal Government will be providing N1billion credit facility at 9 per cent per annum to 75 manufacturers.

According to Tinubu, “Earlier this month, I signed four (4) Executive Orders in keeping with my electoral promise to address unfriendly fiscal policies and multiple taxes that are stifling the business environment. These Executive Orders on suspension and deferred commencement of some taxes will provide the necessary buffers and headroom to businesses in manufacturing sector to continue to thrive and expand.”

“To strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs, we are going to spend N75 billion between July 2023 and March 2024. Our objective is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity. Each of the 75 manufacturing enterprises will be able to access N1billion credit at 9 per cent per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.”

He also added that his administration will inject micro, small and medium-sized enterprises and the informal sector sector with N125 billion noting that N50 billion of the sum will be spent on Conditional Grant to 1 million nano businesses between now and March 2024.

“In like manner, we will fund 100,000 MSMEs and start-ups with N75 billion. Under this scheme, each enterprise promoter will be able to get between N500,000 to N1million at 9% interest per annum and a repayment period of 36 months.” He said.

…hints on purchase of 3,000 units of 20-seater CNG-fuelled buses

By March 2024, the Federal Government would have acquired 3000 units of 20-seater CNG-fuelled buses to mitigate the hardship occasioned by the removal of subsidy on PMS, President Tinubu declared.

He said, “Part of our programme is to roll out buses across the states and local governments for mass transit at a much more affordable rate. We have made provision to invest N100 billion between now and March 2024 to acquire 3000 units of 20-seater CNG-fuelled buses.”

Speaking further, he noted that the purchased buses will be shared to major transportation companies in the states, using the intensity of travel per capital.

“Participating transport companies will be able to access credit under this facility at 9% per annum with 60 months repayment period.” Tinubu said.

FG, Labour to meet again today on planned strike action

The Organized Labour and the Federal Government will meet again today to further discussions on the planned protest by the labour against the hardship occasioned in Nigerians by the removal of fuel subsidy and distribution of palliatives.

Speaking to correspondents, the Chief of Staff to the President, Rt.Hon Femi Gbajabiamila said, “We have been locked behind for a couple of hours, we had a good meeting, issues were thrashed out on the situation in Nigeria today in terms of issues centred around on government intervention on the situation in the country.”

“We agreed to adjourn till tomorrow as you know Mr. President is making a national broadcast today. Based on what we anticipate that Mr. President will be telling Nigerians we decided to adjourn meeting till 12pm tomorrow before labour can decide whether or not they want to continue with the protest on Wednesday.”

“But we believe that after tonight broadcast, President will speak to all the issues, he will roll out his interventions and needles to say we believe any reasonable person will tell you that at that point there will be no need for any protest.”

However, the President of the Nigeria Labour Congress (NLC), Joe Ajaero, said the plan for workers to proceed on a peaceful protest from Wednesday has not changed.

He dismissed fears that the peaceful protest could be hijacked by hoodlums, saying that such had never happened in the history of workers protest.

However, he said it is the responsibility of security agencies to provide security for the protest to protect the workers.