FUEL SUBSIDY/DEREGULATION - MATTERS ARISING &WAY FORWARD

by SCG
(Abuja)

Deregulation of downstream sector of the oil industry (removal of fuel subsidy)is not really a bad policy, but we must get the implementation right to reduce/eliminate initial hardship on the populace.


This can be achieved through phased implimentation, this will ensure that there is no sudden hike in fuel price with its attendant economical and psychological effects on the people. It will also allow govt time to put in place measures that will cushion the effects subsidy removal on PMS.

It also build people confidence in the policy if they see some gains from partial deregulation, it will be easier to sell the idea of full deregulation to them

Another every important thing is that government needs to show transparency and carry the people along in their dealings.

The people will want to see increasing production from the existing refineries and evidence that new ones are coming up either by the govt or private investors.

The populace still wants to be sure that the proceeds from the removal of subsidy will be used for the good of the people.

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PIB TASK FORCE NEW
by: News

Following the promise made by President Goodluck Ebele Jonathan, GCFR, earlier today, that the passage of the Petroleum Industry Bill (PIB) will be “given accelerated attention”, the Honorable Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has today set up a bi-partisan Special PIB Task Force to work with the Ministry to further facilitate the quick passage of the PIB.
Members of the Special PIB Task Force are:
1. Senator Udoma Udo Edoma Chairman
2. Senator Tunde Ogbeha Member
3. Senator Lawan Shuaibu Member
4. Honourable Chibudom Nwuche Member
5. Honourable Abdulahi Gumel Member
6. Honourable Habeeb Fashinro Member
7. Mr. Peter Esele (President, TUC) Member
8. Legal Adviser, FMPR Secretary
The Special PIB Task Force will be inaugurated on Thursday, January 19th at 10am in the Federal Ministry of Petroleum Resources.
Signed;
Alhaji Goni Sheik
Permanent Secretary
Federal Ministry of Petroleum Resource


Read more: http://www.enewswire.co.uk/2012/01/16/diezani-alison-madueke-inaugurate-special-petroleum-industry-bill-task-force-pib-thursday/#ixzz1jnN5APK6

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EFCC raids PPPRA, NNPC NEW
by: ThisDay

http://www.thisdaylive.com/articles/efcc-swoops-on-pppra-nnpc-over-subsidy-payments/107293/

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Aluta continua
by: Sunny

FG has reduced the price of PMS to N97 and Labour has suspended the strike, but the struggle continues.

The issues as seen during the past two weeks goes beyond fuel subsidy removal. The main issues here are good governance, transparency and accountability not only at the federal level but also at the State and local government.

To ensure we dont find ourselves at the position we were last week, there is need for labour and civil society to follow up on those issues that were thrown up.

The process that will ensure that we can refine our oil here in Nigeria should be followed. Those things that need to be done to encourage local refineries to spring up should be fast forwarded.

We need to know why those who have already been licensed to build refineries are yet to start. If they lack the capacity, licenses should be given to more people with the capacity.

Major oil companies operating in the upstream sector like Shell, Chevron etc can be encouraged to build refineries in the country.

The truth is that until we are able to refine our our oil, will will continue this issue of increase in fuel price and resultant strikes and hardship on the people.

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Aluta continua
by: Sunny

FG has reduced the price of PMS to N97 and Labour has suspended the strike, but the struggle continues.

The issues as seen during the past two weeks goes beyond fuel subsidy removal. The main issues here are good governance, transparency and accountability not only at the federal level but also at the State and local government.

To ensure we dont find ourselves at the position we were last week, there is need for labour and civil society to follow up on those issues that were thrown up.

The process that will ensure that we can refine our oil here in Nigeria should be followed. Those things that need to be done to encourage local refineries to spring up should be fast forwarded.

We need to know why those who have already been licensed to build refineries are yet to start. If they lack the capacity, licenses should be given to more people with the capacity.

Major oil companies operating in the upstream sector like Shell, Chevron etc can be encouraged to build refineries in the country.

The truth is that until we are able to refine our our oil, will will continue this issue of increase in fuel price and resultant strikes and hardship on the people.

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Holistic approach
by: Anonymous

The events of the past week and mass action of the past two days has actually thrown up a couple of issues. The problem is more than removal of fuel subsidy hence the solution should go beyond reinstatement or reinvestment of subsidy.

1) The Nigeria people are disenchanted with government and desire a change (not necessarily in people in govt but in the way govt is run).

2) There is a big disconnect between the government and the governed; and those who are meant to be representatives of the people at different strata of govt to bridge this gap have largely failed.

3) The people in govt may know what to do but lack the courage to do so. Are you not surprised how some people that just left corridors of power speak with so much passion on how to get things right in govt.?
4) There is enormous corruption in govt and the beneficiaries of the corrupt system are not willing to let go.
WAY FORWARD.
Our problem is beyond removal of subsidy hence the solution is more than reinstatement of subsidy.
1) Even if the subsidy is returned tomorrow, this struggle should not stop.
2) The people need to continuously set agenda and put pressure on govt to deliver dividends to the people.
3) Govt institutions need to be strengthened.
4) Govt processes and transactions need to be more transparent and available for public scrutiny.
5) The Legislature has largely failed in their oversight functions as they are in most cases more interested in being part of the sharing. Organized labour, the media and civil society should provide a platform to continuously engage the govt (not necessarily through street protest). They can organize periodic town hall meetings and discussions.

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FUEL SUBSIDY - WAY FORWARD -Phased implimentation
by: Jude Ayoka

There are 2 things everybody both from govt and the labour/civil society seems to agree.

1)The sudden hike in the price of fuel is very painful to the masses, it is a shock some people can hardly take.

2)Deregulation of the downstream of the oil sector if well implemented will be to the good the Nigeria and Nigerian esp in the long term.

A way forward then should be to implement this in phases over a period and implementation monitored by labour/civil society. I will suggest 3 phases over 2 years.

What this means is that if the first third of the subsidy is removed now; the govt and the people will agree what the savings from the one third should be used to achieve in the next eight months. After this period if these measurable milestones have been achieved, the second will be removed. If at the end of the second phase the set target is achieved then the second bit of the subsidy will also be removed and so on.

With this approach by the time the last phase of the subsidy is removed the TAM of the refineries would have started yielding fruits and the new refineries being built by the private sector would have also been completed.

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Labour Should Engage Govt in Meaning Dialogue
by: Tony Okey Ayoka

As the strike enters day 2, the leadership of labour and civil society must not disappoint the people and as they move to the streets, the leadership must engage government in dialogue, for the door to dialogue must never be closed in any dispute. The leadership of labour and civil society must know that this is a golden opportunity to extract agreements that will create platforms that will help monitor governance and entrench systems that will improve transparency and accountability in governance. There should be agreed milestones and measurable benchmarks and indicators to gauge govt sincerity in implementing measures to benefit people directly. There should be specifics on savings and sacrifices from cuts on govt excesses and measures to plug leakages in government. this struggle must not just be about FUEL SUBSIDY.

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Let the Refineries work
by: Anonymous

The refineries need to be working before the subsidies are removed. The government can also compel the major oil companies that into oil exploration and production to each build at least one refineries in the country.

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