By Chukwuma Umeorah 

Nigeria’s Organsied Private Sector (OPS) has blamed the lingering fuel scarcity and soaring prices of refined petroleum products across the country on corruption among some government officials. It called for cooperation with relevant stakeholders including the judiciary for serious investigation into the fuel subsidy scheme and for swift prosecution of those who are complicit. 

Reiterating its stance for a gradual removal of fuel subsidy, OPS called on the government to come up with a clear roadmap and cushioning mechanism for the citizens as well as to revamp the existing refineries in the country which had laid dormant for a long time. 

The OPS statement read, “While we strongly recommend that the fuel subsidy regime should be removed by Government by June 2023, as contained in the Appropriation Act, 2023, we also strongly urge that Government should not spare any effort to complete the Turn Around Maintenance of the four refineries before the June, 2023 date; institute a judicial inquiry involving employers and workers representatives to ascertain those that are culpable in the fuel subsidy scam and make necessary adjustment to the Finance Bill 2022, by removing sections that contradicts the Petroleum Industry Act, for the rapid development of the Oil and Gas Industry; jointly develop with stakeholders realistic and applicable cushioning mechanisms for citizens.”

Lamenting the high cost of sustaining subsidy and its consequences on the nations’ purse, the OPS also maintained that the whole scheme is cloaked in secrecy, corruption and lack of proper accountability by officials involved thus defeating its purpose as fuel is still being sold at a very high price in most part of the country. 

It stated further, “It should be noted that over a decade, the country has spent well over N20 trillion on fuel subsidies. In 2022 alone, over N5 trillion was expended and over N3trillion budgeted for same in the 2023 budget. It thus becomes worrisome that the same product that is being subsidized and supposed to be sold at pump price of about N165 per litre is being sold for over N300 and in some instances N650 per litre across the nation. 

Related News

“Since 1973 when fuel subsidy mechanism was introduced as a tool to cushion the landing cost of the petroleum products, it has taken a frightening turn, becoming a major drain in the purse of the nation. It is no gainsaying that the subsidy regime as currently operated is shrouded in secrecy and fraught with corruption…”

 

“The humongous amount spent in the guise of subsidy regime is literally being used to subsidize inefficiency, corruption and consumption. Recent comments by high-ranking Government officials including the Comptroller-General of Customs also alluded to the fact that the subsidy scheme is a brazen rape of our scarce resources.” 

The members of the OPS suggested that the huge amount of money that is being used for subsidy should be channeled into other areas of development such as building infrastructure. 

The statement further added that the government needs to work assiduously with all relevant stakeholders to ensure compliance and accountability at all level.