By Merit Ibe
In the face of the planned removal of fuel subsidy, National Association of Chamber’s of Commerce Industry Mines and Agriculture( NACCIMA )and the Lagos Chamber of Commerce and Industry ( LCCI) have recommended that the removal be phased and with a complement of investment in critical infrastructure that support production.
Acknowledging government’s dilemma and difficulties for an enduring solution to the issue of removal of petroleum subsidy, the Director General of NACCIMA, Ayo Olukanni, noted that the decision to move the date and suspend subsidy removal beyond June is not surprising.
He said the government was faced with the issue of relieving itself of the onerous burden of a burgeoning petrol subsidy and on the other hand how to come up with commensurate benefits to cushion the effect of removal of subsidy on the people or economy at large.
Olukanni emphasised the necessity to consider a practical and acceptable implementation plan in the quest to gradually wean the public off petrol subsidy and cushion the impact with appropriate palliatives.
He therefore noted that it can only be done in consultation with organised labour and other stakeholders including the private sector.
”Such an implementation plan must take into account appropriate timing aligned with the MTEF of government, as well as other concerns related to security. It is equally important that all efforts must be made not overheat the polity either by commission or omission especially as we ahead to an election year. We need a peaceful Nigeria for businesses to thrive, and and attract foreign investment.”
On her part, the DG, LCCI, Chinyere Almona, who called for full implementation of the PIA and the total deregulation of the oil and gas sector, noted that the chamber was not insensitive to the plight of the masses that may feel the pains of some of the provisions like the removal of fuel subsidy.
Almona recommended heavy investment in critical infrastructure that supports production in the economy, adding that more production means more job creation, poverty reduction and improved economic growth.
The DG said the Federal Government must consider doing all that is possible not to truncate the implementation of the PIA 2021 which has already brought so much hope for industry watchers as a big game-changer for the oil and gas sector. “There is a need for stakeholders’ consultations on addressing the implications of lapsed provisions of the Act and forging the way ahead towards the full implementation of the Act.
“Since the announcement of the planned removal of fuel subsidies, there have been numerous reactions expressing displeasure and readiness to stage protests against the planned action. The government on the other hand had expressed its concerns about the unsustainable subsidy payment which has become a strain on government revenue.”