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We didn’t promise April date to remove subsidy – Okonjo-Iweala


THERE was never a time the president said the withdrawal of oil subsidy would be in April as published in some media. I did not say so either.
The April date was the handiwork of some mischief makers.”
With these words, Finance Minister, Dr Ngozi Okonjo-Iweala, dismissed the claim that the Federal Government reneged on the promise to remove the subsidy on petrol in April 2012 as against January 1 when it did.


Okonjo-Iweala, who is also the Coordinating Minister on the Economy, added: “It was never to my knowledge that the president gave such a date (April 2012). There is no particular time one could say was best suited for the withdrawal. It is the prerogative of the president. The important thing is that we cannot carry on the way we did in the past. It would be plunging our future into crisis.”
The minister spoke yesterday on a Radio Nigeria current affairs programme.
In her opening remarks, she said the petrol subsidy removal was to safeguard the future of Nigeria and her children. According to her, if Nigeria did not take the measures, the country would be forced to experience such hardship “that would frustrate the future of our children and we will be like some countries like Greece which kept on borrowing until they got to the crisis situation that they have found themselves”.
Okonjo-Iweala said that if Nigeria continued to borrow to run government, then crisis was imminent and the best thing was to begin to arrest the situation.
The minister asked Nigerians to understand that withdrawal of oil subsidy was just one aspect of deregulation of the industry.
Two or three callers centred their questions on the misdeeds of the past and how it will be difficult to believe that there would be genuine changes this time. The minister assured that the Jonathan government would be transparent. She spoke on other aspects of the nation’s
economy.
ON JOBS
This exercise (fuel subsidy removal) will help in creating about 370,000 jobs and this will help the problem of unemployment.
ON INFRASTRUCTURE
Increase in fuel prices is not the only cause of increase in transportation costs. Bad roads are part of the problem because vehicles get easily damaged on bad roads and the costs are forced down on commuters. This withdrawal will help government source more money
to put our roads in better shape and therefore reduce transport fares.
The railways will also benefit and this will further reduce costs. The trains are generally cheaper means of transportation and something will be done in this respect.
ON HEALTH
Nigeria is one of the worst cases in maternal health care. Nigerian women record deaths in maternal cases more than many other countries and this sector will benefit from the money that will accrue from this withdrawal.
ON MISTRUST
I understand the pains Nigerians are going through. I personally do and so do other colleagues of mine. We plead for patience. The impact of this will begin to show
soon. We intend to start publishing the amount we are saving from this withdrawal of oil subsidy monthly and also where we are directing them. Nigerians will be participants in this process. In few months prices will begin to come down depending on market forces.
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5 comments

  1. Adekunle Oshodi OkeJanuary 8, 2012 at 6:38 PM

    It is irrelevant to stick to fuel subsidy removal. It seems that your government is pleased to be seeing hunger striking corps being litred all over the country. With no fuel subsidy removal people are dying due to hunger and unemployment. Where is the money realised by the Nigerian Government on oil boom since 2003 to date. Can't the government set aside some portions of the money already in the pockets of those who served the Nation during the aformentioned period to fix up whatever problem is emerging in the country and use the rest to pay our debts. Why do we have EFCC. This is a critical time to fish out those corrupt officials, nag them and let them cough up our nations money for better utilization.

    ReplyDelete
  2. It is dishearten to see an oil rich economy minister claiming that the economy will be retored. Why is it that sourcing for fund is now causing mayhem in Nigeria while the so call elected official are earning so much. Different kind of allowance could be used on power generation, contruction and rehabilitation of roads, restructure of health sector, Agriculture and social services.

    Why can't our money be retrieved from previous embessled fund? How much has EFCC realised? Trust me if all these could called back and things is in place. I trust my fellow Nigerians they can go extra mile for nations rebuild.

    I taught Mr President has tasted poverty in the time past? You know what it means? Mrs Economy was born with sliver spon in her mouth. How would she knows the impact when she has not been there?

    All I know is that, if you don't come down to masses voice and promote good governance, Libya is a case study for all of you or you need to learn lesson from J.Rawlings of Ghana.

    A little is enough for a wise.

    Thanks.

    ReplyDelete
  3. It is unfortunate to read from this publication that Iweala argued that Jonathan did not at anytime said oil subsidy will be remove in April.Is there any journalist that can prove Iweala wrong?If noeone can,what is the source of this rumour?
    Anyway,My major concern is that Iweala is a big liar and Jonathan government is absolutely wrong to calimed that Railway will reduce cost of transportation in Nigeria.However,It is the most briliant ideas to put our railway running,but it should be noted that that the benefit of Railways in Nigeria will not include cheaper fare.Let reiterate here that there is nowhere in the world where railways is cheaper means of commune.In UK for instance,rail journey is the most expensive journey,In swizerland with most passanger ratio per population, railway is the costlier mean of commuting,In Germany,France,USA,etc.Rialways is not cheaper mean of transporting passenger but it is the safest, reliable dependable and most environmentally friendly.The cost of bulding and running rialway is economically benefitial to well populated nation like ours.
    To be realistic,what have they use money acquired from previous subisidy to do.The bulk of our so call rulers in jonathan have no children in Nigerian university,so they are not concern wether the university is permanently closed,How many of our senator can send their children to any of their old secondary school.No one can,so they are not concern.If the cost of schooling is as hih as today tell me how wll poeple like our president would have been able to go to university.

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  4. Madam Minister for Finance, may I ask you ma, without oil in Nigeria, what alternative economic formula do you have to offer? There are thousands of countries all over the world that are doing well without it. Why are you leaders in Nigeria turning petroleum exploration to be a curse rather than blessing to us?. If you can not help the common man that you are invited to come and do here, I will rather advice you to carry your bags and baggages back to where you came from.

    ReplyDelete
  5. Madam Minister for Finance, may I ask you ma, without oil in Nigeria, what alternative economic formula do you have to offer? There are thousands of countries all over the world that are doing well without it. Why are you leaders in Nigeria turning petroleum exploration to be a curse rather than blessing to us?. If you can not help the common man that you are invited to come and do here, I will rather advice you to carry your bags and baggages back to where you came from.

    ReplyDelete

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