The Minister of Information, Alh. Lai Mohammed, on Monday said the administration of President Muhammadu Buhari has not let down Nigerians with the new fuel pump price of N145 per litre.
He said the present government has no choice than to deregulate the petroleum sector.
He said in 2015, the Federal Government paid N1trillion as subsidy, which amounted to one-sixth of the nation’s budget.
He said there was no way the government can afford such a huge amount of subsidy again.
He, however, claimed that the liberalization policy will lead to the creation of 600,000 jobs in the country.
But he denied claims that labour leaders were deceived or tricked on the new pump price.
Mohammed, who made the clarifications at a briefing of Bureau Chiefs in Abuja, gave six reasons for the new deregulation policy.
The reasons are as follows:
- To end the crippling fuel scarcity and ensure availability of products
- Drastic fall in the price of crude oil
- FG cannot afford N1trillion per year subsidy again
- No funding or appropriation to pay N16.4 billion monthly subsidy
- Renewed insurgency and pipeline vandalism reduce oil production from 2.2m bpd to 1.65m bpd
- Foreign reserves have fallen
The minister said: “As you are undoubtedly aware, a new price regime for Premium Motor Spirit (PMS) was recently announced by the Federal Government. Many have been asking why this would happen at this time and what triggered the decision concerning the new framework for petrol products supply, distribution and pricing.
“Gentlemen, we have no choice than to liberalize the price of petrol, if we are to end the crippling fuel scarcity that has enveloped the country, ensure the availability of the products and end the suffering of our people over the lingering scarcity.
“Many have also tried to compare what happened in 2012, when the last administration increased fuel price, with the new price regime of 2016. Our answer to that is that there is no basis for comparison.
“The truth is that the NNPC does not have the resources for, nor is it designed to meet this increase in supply. The result is the crippling fuel situation across the country. Pushed to supply 90 per cent of the products required for domestic consumption, the NNPC has continued to utilize crude oil volumes outside the 445,000 barrels/day allocated to it, thereby creating major funding and remittance gaps into the Federation account.
“Also, the renewed insurgency and pipeline vandalism in the Niger Delta have drastically reduced national crude oil production to 1.65 million barrels per day, against 2.2 million barrels per day planned in the 2016 budget, further reducing income to Federation account and also affecting crude volumes for PMS conversion and impacting Federal Government’s forex earnings.” Click to signup for FREE news updates, latest information and hottest gists everyday
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And whose fault is it, anytin u pple do up there u will all always want d masses 2 suffer 4 it. Atleast if Dat 1 trillion z wat d poor masses will gain 4rm d whole budget I concor
ReplyDeleteWo!_But you had option to borrow more than 13 million naira from bank nbc for only five people to attend a two- day conference in china..corruption don dey wear sokoto and Babariga abi. God dey ooo! Anyway by the next general election Nigerians have no options but to chase your incompetent wicked selfish dictatorial vindictive witchunting confused insensitive and clueless APC government and people away through the ballot. The unfortunate thing is that by then you hard sent many Nigerians to their early graves through your hunger hardship and starvation caused by your wicked and insensitive selfish policies. God dey ooo. Make una fear God ooo!
ReplyDeleteWO! But you had options to borrow more than 13 million naira from bank NBC for five people to go to China for a two - day conference Abi? God dey oo! Corruption now wear sokoto and Babariga. The voters have no options but to vote your wicked corrupt incompetent insensitive vindictive witchhunting dictatorial and clueless APC government and people out come 2019. The unfortunate thing is that you have sent many Nigerians to their early graves through your with led and insensitive policies which is only anti- masses.God dey ooo! Make una fear God ooo!
ReplyDeleteAPC ....Change!
ReplyDeleteOur change don turn to Shame!O to!
Y would u have other choice since u and your generation are not buying the fuel. F.G should have deregulated without fixing that exorbitant price to futher impoverish the masses. There has not been anything positive since this administration came on board, not even one.
ReplyDelete#GodWillFight4Us#
HABA, I THOUGHT THIS LIE-LIE MAN HAS EXHAUSTED ALL THE LIES IN HIS ARSENAL. KEEP FEEDING US LIES. EVEN SOME OF US THAT ARE DIE-HARD BUHARI APOLOGISTS ARE BEGINNING TO LOOSE HOPE. OH HOW HAS JUSTICE FLED WITH THE BEASTS. NO MATTER, BUHARI'S SHADOW SEEMS BETTER THAN HIS PREDECESSORS' SUBSTANCES. WE WILL STILL SURVIVE. Jay 2, Abuja.
ReplyDeleteMany has tried to compare what happened in 2012 to what is happening now in 2016,and our answer is there is no basis for comparison,liar Mohammed,what are your reasons,as far as am concerned,you gave none...bullshit...GOd will judge all of you,there is no single policy u fools hve made that has not brought sufferings,am beggining to think you guys are the anti Christ the Bible talked about..
ReplyDeleteNigerians should understand the reality of the current economic situation around the world. The govt is trying. The people should focus on agriculture. Our farmers are now enjoying good prices for their produce.
ReplyDeleteUnderstand indeed...have they cut there allowances...when it becomes difficult,the masses are always the soft target,why must it always be like that...this is wickedness...check the budget of national assembly alone,then you will see what am talking about..
DeleteThis lying govt should first cut their salaries and benefits by at least 50% before telling the masses to swallow any bitter pill. This is just blatant and evil farming of cash from the masses using stories and nonsense "Daramola" figures as basis. Even the NNPC which gets forex at official rate is selling at this exorbitant price. Criminals!
ReplyDeleteYes, the unquestionable owners of the country. Go ahead with whatever you decide. The country belongs to you people. Go ahead please.
ReplyDeleteLie lie lai and layer TAye Taiwo of nigeria politics
ReplyDelete