CSO’s call on Otu to unveil Subsidy removal amelioration strategy

PRESS STATEMENT BY CROSS RIVER STATE CIVIL SOCIETY NETWORK ON THE REMOVAL OF SUBSIDY ON PREMIUM MOTOR SPIRIT(PMS) BY THE FG: A CALL ON GOV. BASSEY OTU TO UNVEIL HIS SUBSIDY REMOVAL AMELIORATION STRATEGY FOR THE STATE AND ON THE PRIVATE SECTOR TO ACT RESPONSIBLY. 

May 29th 2023  heralded a new dawn for the nation and the State in particular. At the Federal level, the baton of the Presidency passed from President Muhammadu Buhari to President Bola Tinubu. At the State level, same day and time, we witnessed the end of the administration of Governor Ben Ayade and the emergence of a new government led by Governor Bassey Otu. 

Instructively, the new President in his inaugural speech picked some burning national issues to address frontally, one of such being the lingering subsidy on PMS that successive administrations had been burdened with financing from the moment our publicly owned refineries could no longer cater for our fuel ( PMS) consumption and we therefore had to resort to importation of refined crude oil to meet our domestic demands for fuel and other byproducts of crude oil despite our enviable status as a major producer of the commodity in the world. 

The President without mincing words stated that "Subsidy is gone" a statement that resulted in series of negative actions and catastrophic effect on the poor and vulnerable in the country, plunging their economic and social status to an all time low due to the transportation crisis that they didn't envisaged. This unfortunate development occured in the backdrop of a very high inflation already in the country, causing the cost of basic commodities to skyrocket beyond the reach of many Nigerians.

From the foregoing, perhaps fearing another backlash similar to that of 2020, some Governors became proactive and took crucial decisions to protect the welfare and survival of their citizens in the midst of the hardship in the country, now exerbated by the withdrawal of subsidy on PMS. Some of these steps are worth commending  though a lot more needs to be done by these Governors. While we acknowledge the prompt action of our State Governor to set up a Joint Task Force for Petrol Price Monitoring and for Prevention of Hoarding, we are however constrained to state unequivocally that the situation is now beyond monitoring of PMS prices and preventing hoarding of the commodity since the Federal Government has now fully  embraced immediate withdrawal of Subsidy and so effectively  endorsed a new price regime for PMS without subsidy on the product discarding the end of June 2023 initial end to subsidy as planned by the previous administration of Muhammadu Buhari. The implication of the current development is that new measures must now be in place to ameliorate the severe hardship experienced by our fellow compatriots who live and work in the state.

Notably, the Governors of both Edo and Kwara states have taken deliberate actions to ameliorate the plight of their people through issuing  statements that  reduce the days of work of the state Civil/Public servants from five to three days though  excluding the essential sector workers and encouraging those categories of workers to work from their houses the remaining two days till further instructions are issued in that regard. We consider this initial interventions by the Governors as timely and commendable though we also view it as not being comprehensive to respond to the plight of all categories of the citizens in the states. We also point out the unilateral action of the Federal Government to increase the allowances of its workers before the implementation of the subsidy withdrawal as commendable though just as the state Governors it targeted only its workers while excluding other segment of society expected to also bear the pain of the new policy on PMS. 

It is in view of this that we call on the State Governor,  "Sweet Prince", to show Leadership at this point by harnessing the virtues that endeared him to majority of voters in the recent Governorship election in the state who were convinced that his priority was the "PEOPLE FIRST" before any other personal or political considerations. He should immediately consult widely and consequently  unveil his administration SUBSIDY REMOVAL AMELIORATION STRATEGY FOR THE STATE. 

In the meantime, as partners in the development of the state we use this medium to recommend the following to be considered in arriving at such a Strategy:

(i) Reduction of Working Days for Civil/Public Servants from five to four days subject to upward or downward review at the end of every two months;

(ii) Increased funding of School Feeding program for improved food quality and to increase coverage for all pupils/ students in Primary and Secondary Schools of the State;

(iii) immediate mobilisation and circulation of available government owned official vehicles to transport residents across  major  highways of the state capital and other urban towns of the state at minimal cost sufficient to maintain the vehicles;

(iv) immediate employment of young qualified Cross Riverians to fill vacancies in the state civil/ public service;

(v) immediate increase in transport allowance to Civil/Public Servants in the State especially those earning below N100,000 per month;

(vi) Establishment of transportation loan facility  to all eligible Cross Riverians;

(vii) Increase   in the coverage of Cross Riverian benefitting from the conditional Cash Transfer programme for poor and vulnerable household;

(viii) review of the salary status of the state and ensure all civil/ public sector workers fully enjoy the current N30,000 minimum wage without   any type of illegal deductions while putting modalities in place to immediately implement the new minimum wage increase proposed by the Federal Government to be agreed with Labour;

(ix) Recommencement of payment of gratuity to Retirees with prompt payment of pensions alongside transportion support.

 

(x) Provision of Transportation Bailout Funds to a minimum of 600 Transporters at zero interest" with the goal of having them charge affordable transport fares. 

(xi) Revitalisation of the State Public Transportation Company(CROSS LINES) through immediate purchase of 20 new coaster buses and 5 Innoson CNG/LNG luxurious buses for Inter Local Government Areas passenger service and conveying of basic agriculture goods. 

(xii) Collaboration  with Communications network companies to improve internet connectivity in major communities and towns across the state to promote remote working and E- Learning.

For a sustainable post subsidy removal state, we cannot ignore the vital responsibility that is also placed on the Private Sector of the state. Firstly the enormous investment resources that is required will also have to be mobilised by the private sector and not just the government, as a state with Tourism as a key revenue generating sector, the private sector should invest in modern transportation opportunities    that now beckons to attract more visitors to tourism sites that abound in the state working in close partnership with the new state government of Governor Otu to turn the Subsidy Removal crisis to new job opportunities and wealth creation for the People of the State and other residents.

Secondly, the Private must understand its Corporate Social Responsibility at moments like this by creating awareness within its community that exploitation of the citizens and maximization of profits will lead to society with widespread poverty and crisis which does not augur well for any business to flourish.

SIGNED:

 Jonah Okpa

Date: 9th June,2023