Confab Delegates in Heated Debate Over Fuel Subsidy

 

Delegates at the on-going National Conference yesterday debated the desirability and otherwise of the much-touted Fuel Subsidy as they spoke either in support or against the complete removal of the subsidy as recommended by the Standing Committee on Public Finance and Revenue.

The debate on the committee's report kicked off after delegates had resumed for the week following the death of the wife of the conference chairman, Justice Idris Kutigi, on Wednesday last week.

A total number of 147 delegates indicated interest to comment on the report and as at close of session yesterday evening only about 50 had spoken prompting adjournment and continuation of the debate today.

Each delegate spoke with passion on why the Federal Government should either keep subsidising petroleum products for the public or why it should be removed.

According to the report, as presented by the committee chairman Senator Adamu Aliero, subsidy on petroleum products was an avoidable major financial burden on the nation.

It said between 2006 and 2007, subsidy accounted for 30% of government expenditure which translated to 118% of capital budget and 4.18% of the Gross Domestic Product (GDP).

It was also revealed that subsidy payment of N2.527trillion in 2012 and 2013 averaged N1.263trillion per annum and describing it as "a burden too heavy for the nation and its populace."

The Committee stated that the situation was anomalous and encouraged smuggling; and that government resources which should have been used to undertake more developmental projects were being spent on subsidy, arguing that its removal will "most certainly" ensure product availability at all times and significantly mitigate illicit cross-border activities.

The committee posited that the poor and the rural dwellers to whom the subsidy scheme was initially targeted were not reaping the benefits and its removal would encourage investments in refineries and the downstream sector.

Those who argued against the removal of fuel subsidy as recommended by the committee said since constant power supply in the country was still a mirage, government should fix all the moribund refineries for local production of petroleum products before removing the subsidy.

Source: All Africa