FG sets up subsidy reinvestment board •Appoints Kolade as board chairman •Belgore to head FG’s negotiating team

Newsflash

Front Page News

FG sets up subsidy reinvestment board •Appoints Kolade as board chairman •Belgore to head FG’s negotiating team

Written by Leon Usigbe, Christian Okeke and Adunola Oladapo Tuesday, 03 January 2012

PRESIDENT Goodluck Jonathan has set up a Subsidy Reinvestment and Empowerment Programme Board and appointed Dr Christopher Kolade as the chairman.

Similarly, he has named a high-powered committee headed by a former Chief Justice of Nigeria, Justice Alfa Belgore, to meet with the organised labour and all other stakeholders with a view to resolving issues that may arise from the removal of the subsidy on petrol.

The Kolade committee is to oversee and ensure the effective and timely implementation of projects to be funded with the savings accruing to the Federal Government from subsidy removal. Major-General Mamman Kontagora (retd) will serve as deputy chairman of the board.

According to a statement issued by the Special Adviser to the President on Media and Publicity, Dr Reuben Abati, the Subsidy Reinvestment and Empowerment Programme Board would also include two representatives of the National Assembly, two representatives of the organised labour, one representative of the National Union of Road Transport Workers (NURTW), one representative of the Nigeria Union of Journalists, one representative of Nigerian women groups, one representative of Nigerian youths, one representative of civil society organisations, the Coordinating Minister of the Economy/Minister of Finance, the Minister of National Planning, the Minister of Petroleum Resources, the Minister of State for Health, the Special Adviser to the President on Technical Matters, and six reputable individuals from the six geopolitical zones in the country, three of whom will be women.

It said the mandate of the board shall be to oversee the fund in the petroleum subsidy savings account, and the programmes specifically initiated to improve the quality of life of Nigerians in line with the transformation agenda of the president.

It added that the Board would have the following responsibilities:

(a) Determine, in liaison with the Ministry of Finance and Ministry of Petroleum Resources, the subsidy savings estimates for each preceding month and ensure that such funds are transferred to the Funds’ Special Account with the Central Bank of Nigeria.

(b) Approve the annual work plans and cash budgets of the various Project Implementation Units (PIUs) within the Ministries, Departments and Agencies (MDAs) and ensure orderly disbursement of funds by the PIUs in order to certify and execute projects.

(d) Update the president regularly on the programme.

(e)Periodically brief the Executive Council of the Federation on the progress of the programme.

(f) Appoint consulting firms with international reputation to provide technical assistance to the board in financial and project management.

(g) Appoint external auditors for the fund.

(h) Do such other things as are necessary or incidental to the objective of the fund or as may be assigned by the Federal Government.

Members of the committee to meet with the organised labour, civil society groups and other stakeholders are the chairman of the Governors’ Forum, Governor Rotimi Amaechi of Rivers State; Governor Mu’azu Aliyu of Niger State; Governor Peter Obi of Anambra State; Governor Adams Oshiomhole of Edo State and Governor Sule Lamido of Jigawa State.

The committee, which is expected to begin its work immediately, also includes the Minister of Finance and Coordinating Minister of the Economy, Mrs Ngozi Okonjo-Iweala; Minister of Petroleum Resources, Mrs Diezani Allison-Madueke; Minister of Labour and Productivity, Chief Emeka Wogu; Special Adviser to the President on Inter-party Affairs, Senator Ben Obi and Mrs Ngozi Olajemi.

Meanwhile, as tension continues to build and hardship already swelling following the removal of fuel subsidy, the Federal Government has said the deregulation of the downstream sector of the oil industry was not aimed at causing hardship on Nigerians but opening up the sector for growth and investments.

Most petrol stations across the country now sell premium motor spirit at the rate between N145 and N150, with the organised labour, civil society groups and opposition parties threatening showdown with the government.

But the government said it noted that with the take-off of the deregulation policy, "there might be initial hike in the price of fuel" and claimed that it was taking measures to check the trend through active participation of the Nigerian National Petroleum Corporation (NNPC) in the sale of fuel to guard against profiteering.

Minister of Information, Mr Labaran Maku, as the spokesperson of the Federal Government, made the remarks at Akwanga, Nasarawa State, while addressing the people on the implementation of deregulation in the downstream oil sector.

Mr Maku, in a circulated email on his behalf by Joseph Mutah, told the people that the Federal Government had entered into partnership with the original builders of the nation’s existing refineries to turn them around for production at installed capacity between 18 and 24 months.

He said three new refineries would be built in Lagos, Kogi and Bayelsa states by the private sector operators, with the government equity participation to refine 400, 000 barrels of crude per day.

The minister assured that in the next two years, all the petroleum products consumed in the country would be produced locally.

Mr Maku claimed he was worried that the price of fuel had stifled the growth of the downstream sector and prevented private sector investments in the refining of petroleum products.

He said private investors would now seize the opportunity of the deregulation to establish refineries that would compete in production to bring down the price of petrol in no distant future and create more job opportunities for Nigerians.

According to him, for development to take place in the country, decisive measures had to be taken in order to correct the wrong policies of the past.

He cited the implementation of deregulation in Ghana’s oil sector, which he described as a proactive measure to start oil exploration and refining on sound policies.

The minister appealed to Nigerians to disregard those calling for mass protest over the deregulation of the downstream sector of the oil industry, saying the aim of the policy was to transfer subsidy from consumption to production.

He promised Nigerians that funds that would accrue from deregulation would not form part of the regular budget, but would be managed by credible Nigerians from diverse interest groups and would apply the resources to projects that have direct bearing on the common man.

The minister said part of the Subsidy Re-investment Programme is the restoration of the railways across the country to provide alternative and affordable means of transportation of goods and services, while the government would provide interest-free loans to transporters to buy buses that would shuttle Nigerians at subsidised cost in order to ameliorate the high cost of transportation.

Set as favorite

Bookmark

Email this

Comments (11) Add Comment

Show/hide comments

Story! Story!
written by Saleh, January 03, 2012

Stop feeding us with this crap! No two way about it: GEJ's govt is utterly unscrupulous and anti-people! God punish you!

Mr
written by Augustine A, January 03, 2012

I cogratulate the president for taken such a bold step to deregulate the oil sector. Those protesting should try and see the huge benefits in stock for the populace. I appeal to all nigerians to have faith in this administration.It is unlike others. It meant well for nigerians. The so-called difficulties we might be expriecing now are a sacifice to be made in order to make us one of the best nations. Please let us excercise petience to allow this government take us to the promised land. God bless Nigeria!!!

-1

MANof GOD
written by ephraim Eze, January 03, 2012

MR precedent, ONE thing u must know, a second shock kills many this is a period where every average nigeria are looking forwod to cope and u precedent that all nigeria vote to power and u claim that u know the idear of hard ship wake up and remove subsidy rethink thanks

...
written by El Egwu, January 03, 2012

What a whole load of rubbish! The same old corrupt guard appointed to finish us off. What does this government thinks of the average person? What became of Petroleum Trust Fund and lots of other committees that went before? These big fancy words are just empty rhetorics to plunder resources as usual. They said so about electricity, EFCC, the Niger Delta reconstruction and so on. We are being taken for a ride yet again but this time, it is a costly one.

Give Jonathan A Chance
written by Lawrence Ekong, January 03, 2012

The removal of oil subsidy on January 1 2012 no doubt is a hard blow on the masses. However, I want to believe that the long-run benefits will outweigh the initial pains only
if the newly-inaugurated Re-investment and Empowerment Programme Board headed by a Management Guru, Dr. Christopher Kolade, live up to their responsibilities. The Board must ensure that no kobo saved on the subsidy removal enters private purses, and contracts to be funded from the subsidy savings do not change hands many times before getting to the final contractor so that the dividends of the deregulation can be realised. Let's give Jonathan a chance and watch how he would be vindicated.

Re:Subsidy Removal
written by mcbunde, January 03, 2012

Mr. Jonathan should have reomoved fuel subsidy in 18 to 24 months when the original builders of the existing refineries would have "completed" their turn around maintenance and were refining at full capacities, Mr. Goodluck, sorry Badluck should have removed subsidy when the three new refineries would have been build by private investors, Mr. Ebele should have removed fuel subsidy in the next two years when all the petroleum products consumed by country are been produced locally. Mr. President could start the decisive measures by cutting his allowances along with his cabinet members to reflect the sacrifices he is asking Nigerians to make. Mr. Azikiwe should have completed discussion with stakeholders and wait for the still-running 2011 Appropriation Act to expire and allow 2012 Appropriation Bill to be passed before removing subsidy. It shows no matter how hard the leopard tries, it can't change its spots. What are we saying? Lead by example.

mr
written by k k, January 03, 2012

Yes job for the masters. Nigerian local professionals are not to be considered for any consultancy but internanational. Where is the so called local content.

Mr
written by Aniegbunem Agbobu, January 03, 2012

What has happened to market force as economists will put it. Market works better if it is allowed to take care of itself. With the subsidy of agriculture in the western world and let us not forget, the importance of agriculture to all and sundry, rich and poor, old and young, we all see how this has been gravely abused. For crying out loud, we should stop playing the ostrich, it is only in Nigeria you have the cheapest feul in the world and this is not and will never be sustainable. This has brough in massive abuse by a very few, who now run as a mafia. They use this horrible practice of subsidy, to reap the government off, by extension the masses. They bring in the worst quality feul from only God knows where. They refuse to build the refinneries and saboutage the existing ones, as these only serve their selfish interest. Why can not Nigerians see all these? The nation is borrowing money to pay subsidy, that only benefits a very few. Fellow Nigerians this is not on. We should all insist that the government and law makers, make Nigeria an investors delight, by making good laws and creating a good economic environment for investors. We should ask all these pretend, placebo and generic polititians to stand up tall, rise above their petty political chennanighan and do the right thing for Nigeria. We should ask these political traders and hustlers, who are our so called leaders, to address our public transportation systems and fix them without delay. They should address our delapidating infrastuctures and make sure that they are good and running again and build new infrastuctures where they are required. It is common sense to borrow money to do these, instead of borrowing mony for subsidy, or to be looted and stolen. It is the masses that should be subsidised by addressing the above and not the very few by way of feul subsidy. The problem is that this government, can not put their case to the people, because they have lost all credibilities and nobody believes anything they say. Mr jonathan and his government are seen as 'CHOP AND QUENCH GOVERNMENT' and this is the lacuna.

...
written by tj, January 03, 2012

Na today them de promise us heaven on earth! This people can't be trusted! The worst part of it is that Ngozi failed me by say the Govt won't impliment it until april! All the respect for her gone! Shame on you Ngozi! Shame on you goodluck!

Re-Subsidy Removal
written by Tom Deggs, January 03, 2012

Nigerians are now familiar with the antics of Governments right from the Babangida administration to the Obasanjo Administration, the issue of de-regulating the downstream sector is a worn out song, which is no longer valid, history has shown that inspite of the abundance of natural resources in this country , wastage and mismanagement has being the bane of our National Life!

For crying out aloud the People of Nigeria must realise that they have to take their destiny in their own hands, neither Jonathan or any other person is the messiah,as a nation we should become more industrious and productive, we cannot continue depend on Oil Resources alone,we have an abundance of natural minerals which we can harness, vast arable land for agro cultivation, what stops us from being the bread basket of Africa, have we forgotten the groundnut and cotton pyramids,commercial Cocoa production in the old western region etc.
Nigeria can feed itself and the rest of the world, if we have multiple sources of income, then liberalising the petroleum sector would be more sensible and less painful.

We need more creative and sincere leaders, not accidental opportunist who are trying to use textbook palliatives for real problems, imported technocrats may not be the answer to our problems.
Nigerians get real, today it is the Jonathan Administration that is in the firing line, tommorow would be "Another-name" administration, when would the vicious circle of poverty end, please we need to get our priorities right!

Goodluck is a disappointment to the electorates
written by Nathan Akatakpo, January 03, 2012

There are some unguarded comments here. Why should there be a removal of fuel Subsidy in the first place, before talking of giving him chance. As far as I know and understand, GEJ has failed in his quest to sink the nation. I can't even imagine him trying such a thing. There are other pressing issues that requires urgent attention other than the removal of fuel subsidy. The lives and properties of his fellow Nigerians are in danger, and all he could do is to worsen it. Maybe it is because him and his family are adequately protected and financed. Whatever be the case, if man has no power and wisdom to make him change his evil mind, the almighty is surely intervene save Nigerians.