In rapid succession, the Federal Government implemented petroleum subsidy
removal, abolished the naira exchange rate differential, removed the subsidy
on electricity, while the Central Bank of Nigeria, CBN, imposed a 0.5% levy on
electronic transfers, among other measures meant to extract revenues from the
dry pockets of Nigerians.
The petrol subsidy removal was imminent because all the three major
presidential candidates – Tinubu, Atiku Abubakar and Peter Obi – had pledged
to implement it. While Atiku and Obi came from the old Peoples Democratic
Party, PDP, background which had always believed in the subsidy removal,
Tinubu’s APC had mobilised opposition against it but turned around to
implement it when it assumed power.
Nigerians were still reeling from the hurt of the petrol subsidy removal and
naira collapse when the Minister of Power, Adebayo Adelabu, also slammed the
controversial removal of electricity subsidy. Consumers were classified, and
the best supply of available power apportioned to the highest bidders – the
so-called “Band A” customers. This category of metered customers was to pay
N225 per kilowatt hour, kwh, up from the former N68kwh – more than 300 per
cent rise.
Organised Labour has already commenced picketing of the premises of the
Nigerian Electricity Regulation Commission, NERC, and power companies
nationwide. Unlike their earlier seeming half-hearted efforts to confront the
Tinubu government’s harsh economic policies, the picketing was well received
by the populace who have virtually been bled dry in the name of economic
policies.
Many economic experts fault the Tinubu government’s approach on two major
fronts. These measures seem to be a close compliance with prescriptions of the
International Monetary Fund, IMF, and World Bank, WB, which have called for
the abolition of all subsidies, especially on petroleum and power. Tinubu is
an enthusiastic shopper for foreign investors, and is convinced that complete
subsidy removals will bring them in droves.
The second ground of disagreement is that this regime has remained profligate
in the spending of public resources with overload of ministers in the Tinubu
cabinet, allocation of N90bn to hajj pilgrimage and sumptuous allocations to
the three arms of government in the current national budget.
The Tinubu government seeks to dodge “bankruptcy” by shifting the same to the
people. This is unacceptable. The subsidy on electricity must be maintained.
Government owes it to Nigerians. Local investors, manufacturers and businesses
cannot be sacrificed for foreign investors. They, especially small businesses,
need reliefs like the power subsidy, to survive. If everyone is chased out of
business, where will the economy be?
We say no to power subsidy removal.
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