Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke
President Goodluck Jonathan on Tuesday said the Federal Government would still remove fuel subsidy.
But he said the government would first discuss the proposal with Nigerians before removing the subsidy.
The President said at the Nigeria
Summit, which held in Lagos, “We cannot continue to waste resources
meant for a greater number of Nigerians to subsidise the affluent middle
class, who are the main beneficiaries (of fuel subsidy).
“We believe that as we progress, government is going to continue to enlighten Nigerians on the need to remove fuel subsidy.”
The Federal Government had announced the
total removal of subsidy on petrol on January 1, 2012 without prior
announcement, raising the price of a litre of the commodity to N141 from
N65.
The removal was, however, vehemently
rejected by the citizens, who staged weeklong mass demonstrations in
major cities of the country, forcing the government to partially remove
the subsidy and reduce petrol price from N141 to N97 a litre.
According to the Petroleum Product
Pricing Regulatory Agency’s pricing template, the landing cost of a
litre of petrol is currently N131.10, with total distribution margins of
N15.49, thus bringing the total cost to N146.59.
This means that if the government
eventually removes the subsidy, Nigerians will be paying a minimum of
N146.59 per litre of petrol at filling stations.
The President also said the government was planning to create 480,000 jobs through its transformation programme this year.
He said, “Fifty per cent of our
population is below the age of 35. That is why we established the YouWin
programme. The idea is to make entrepreneurs to create jobs for
themselves so that one youth can employ more than five youths. Our
target is that this programme will create 80,000 jobs.
“Through the SURE-P programme, we are
targeting 400,000 jobs this year. This is part of our transformation
agenda, which is based on policies and programmes to promote job
creation, engender private sector led inclusive growth, and promote
peaceful environment. Our ultimate goal is to have everyone occupied in
our development programme so as to improve the standard of living of our
citizens.”
Jonathan said significant changes were
going on in the agricultural sector, encouraged by the reforms, adding
that the government was committed to finding sustainable solutions to
terrorist threats currently confronting the nation.
He said, “We have adopted a value-chain
approach to accelerate the production of staple foods such as rice. The
Mortgage Refinance Company will bridge the housing gap in the country
and improve the number of mortgages to 200,000 within the next few years
from its current 20,000.
“Our economic transformation is not
without major challenges. It is important for the business and
international community to recognise that these security challenges are
part of a rising global phenomenon. Terrorist groups operating within
the country are increasingly linked to other groups operating
internationally.”
Jonathan said, “The first of our
three-prong approach to addressing this menace comprises the
strengthening of counter terrorism cooperation with neighbouring
countries. Now more than ever before, the international community is
giving support in the fight against terrorism.
“Our second approach is openness to
political dialogue. This can only be realistic when the groups involved
in the act of terror can relinquish their anonymity, come forward and
make their objectives known.
“Our third approach is economic
inclusion. This strategy targets the disadvantaged and unemployed,
particularly in the northern part of the country. We are also
diversifying the economy away from oil to agriculture, housing, the
creative industry and other sectors that can generate jobs.”
He noted that the three tiers of government were now meeting regularly to appraise government’s anti-corruption fight.
The Minister of Finance and Coordinating
Minister of the Economy, Dr. Ngozi Okonjo-Iweala, while speaking on
where the agenda for the structural reforms of the economy currently
stood, said the Nigerian economy had improved from its 2.3 growth rate
when the present administration assumed office in 2003.
She said Nigerians were asking questions
and demanding for change, which the present administration was focused
on, by putting a system in place to check corruption in governance.
“We are working on fighting corruption,
which is about building institutions. This is where other countries are
getting it right; it is not as if they don’t have corrupt people. Our
system is antiquated and we have to put in place a new system,” the
minister said.
PUNCH
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