Connect with us

Headlines

Why Buhari Canceled Planned Subsidy Removal

Published

on

Details have emerged on how security advice forced President Muhammadu Buhari to make a U-turn on the decision to remove fuel subsidy.

An impeccable security source told The PUNCH that intelligence handed over to the President by security officials showed that the protests that would have accompanied the subsidy removal might have been far worse than the #EndSARS demonstrations, mass protests against police brutality that grounded many parts of the country in 2020.

The official, who spoke to The PUNCH on strict condition of anonymity because he was not authorised to speak with the press, said the President was eager to implement the Petroleum Industry Act which would have ensured that subsidy was removed by June and investments in the oil sector increased.

He further stated that the government was afraid that such protests would have easily been hijacked by the opposition and affected the chances of the All Progressives Congress in next year’s election.

The official added, “The police, DSS, the National Intelligence Agency and the Office of the National Security Adviser usually send security reports to the President on the impact of sensitive issues like fuel subsidy. Reports given to the President showed that the protests being planned by unions would have been 10 times bigger than the #EndSARS protests.

“Petrol price was projected to increase to about N350 if the international price of oil continues to rise. This would have increased the cost of everything and encouraged everyone to take to the streets.

“They also drew the President’s attention to the coups sweeping many African countries and how the protests could have been hijacked by the opposition. This was why the President not only delayed subsidy removal but transferred the responsibility to the next government.”

Former President Goodluck Jonathan had in 2012 faced a similar challenge when he removed petrol subsidy forcing the price to rise from N65 per litre to N140.

The incident sparked protests in several parts of the country especially in Lagos where thousands converged on Ojota for over a week, grounding commercial activities in the country’s commercial capital.

“Some ministers actually advised the President to go ahead with subsidy removal because of the potential investments that deregulation would bring. But the President could not have taken such advice. The country is currently facing insecurity in several states, people are hungry. Outright removal of subsidy would have led to a rise in the cost of goods and protests. The alternative given to the President is to increase fuel price slightly. This could be done gradually by adding N3 or N5 periodically,” he said.

When one of our correspondents called the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, on the phone on Thursday for a reaction, he declined making any comments on the issue

But, the Special Adviser to the President on Media and Publicity, Femi Adesina, had in an interview on Channels Television’s ‘Sunrise Daily’ programme on Wednesday,  said subsidy removal would have forced Nigeria into a tailspin.

Adesina added, “If that subsidy had been removed, it would have been a show of will that we want to solve this problem (oil fraud). There was a will but if you have a will and what you want to do will upturn the system, throw the country into a tailspin, then you would have to reconsider, you will weigh it. That is why further consultations will still happen.”

The Nigeria Labour Congress and the Trade Union had last year said it would on Thursday (yesterday) and February 2 embarked on nationwide protests against government’s plan to remove fuel subsidy.

But on Tuesday, the union shelved the protests following government decision to shift fuel subsidy removal by 18 months and amend the Petroleum Act, whose implementation was earlier scheduled to start in June.

The Punch

Continue Reading
Advertisement

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Headlines

UN Deputy Sec Gen Condemns Gruesome Killing of Deborah, Demands Justice

Published

on

Amina Muhammed, the United Nations Deputy Secretary-General, has called for justice following the killing of Deborah Yakubu in Sokoto over blasphemy.

Muhammed spoke out via her official Twitter page on Tuesday, stating that religions should not be “misinterpreted to preach violence”.

“Justice must be done for the senseless, brutal killing of the young Deborah Yakubu in Nigeria. Religions should not be misinterpreted to preach violence when they promote peace.

“My prayers are with the family and for the repose of her soul,” she tweeted.

Yakubu, a second-year student of the Sheu Shagari College of Education, Sokoto, was lynched on the school premises on Thursday after classmates accused her of blasphemy.

On Monday, the Sokoto Police Command arraigned two suspects, Bilyaminu Aliyu and Aminu Hukunci, before a Chief Magistrate’s Court in the state, for their alleged participation in the crime.

The suspects pleaded not guilty to the charges while the defence counsel, Prof. Mansur Ibrahim, applied for their bail on liberal terms, citing constitutional provisions and sections of the Administration of Criminal Justice Law.

The trial judge reserved the ruling on the bail application and ordered the accused to be remanded at a correctional centre.

The Punch

Continue Reading

Headlines

AfDB’s Adesina Not Contesting for Presidency – Report

Published

on

The President of the African Development Bank, Akinwunmi Adesina, will not be contesting the Presidency of Nigeria.

A support group had purchased and submitted the N100m Presidential form of the All Progressives Congress for the top banker last week.

Some had also reported that Adesina visited Mamman Daura, the influential nephew of the President, Major General Muhammadu Buhari (retd.) last week to seek his support.

But The PUNCH confirmed that Adesina will not be taking part in the Presidential screening of the APC slated for May 23.

Adesina’s office is expected to issue a statement in a few hours distancing himself from Nigeria’s partisan politics.

The AfDB regulations bar its President from partisan politics.

Specifically, Paragraph 2 of Article 38 of the agreement establishing AfDB, titled ‘Prohibition of Political Activity; the International Character of the Bank’, states that “The Bank, its President, Vice Presidents, officers and staff shall not interfere in the political affairs of any member (country); nor shall they be influenced in their decisions by the political character of the member (country) concerned.”

Paragraph 3 of the article states that “The President, Vice Presidents, officers and staff of the Bank, in discharge of their offices, owe their duty entirely to the Bank and to no other authority.”

Similarly, the AfDB code of conduct bars its executive from partisan politics. Section 10 of the Code reads: “Although Executive Directors are elected representatives of governments from their constituencies, they shall during their tenure of office as executive directors refrain from participating in active politics in their home countries or elsewhere.”

Should Adesina seek to run for the office of President of Nigeria, he would need to resign his current position permanently, a risk it was learnt the top banker was not willing to take.

There are at least 25 other aspirants running for President on the platform of the APC.

Some of them include APC stalwart, Bola Tinubu; Vice-President Yemi Osinbajo; former Transport Minister, Rotimi Amaechi; Senate President Ahmad Lawan; oil mogul, Tein Jack-Rich; Senator Ajayi Boroffice; Governor Yahaya Bello of Kogi State; Governor Badaru Abubakar of Jigawa State and many others.

The Punch

Continue Reading

Headlines

N80bn Fraud: EFCC Arrests Accountant-General of the Federation, Ahmed Idris

Published

on

Nigeria’s Accountant-General, Ahmed Idris, has been arrested over alleged money laundering and diversion of public funds, according to a report by PREMIUM TIMES.

According to the report, Idris was intercepted in Kano by operatives of the Economic and Financial Crimes Commission (EFCC) on Monday evening and flown to Abuja, the nation’s capital, for interrogation.

Sources said the EFCC has for sometime now been investigating a case of diversion of at least N80 billion in public funds which was allegedly laundered through some bogus contracts.

The companies used in laundering the funds have allegedly been linked to family members and associates of the accountant-general, investigators said.

The sources further said that after progress was made in the investigation, Idris was summoned repeatedly for interrogation but he failed to honour the invitations.

“We kept inviting him but he kept dodging us,” one of our sources said. “We were left with no choice than to keep him under watch and arrest him.”

However, a top EFCC confirmed the development but asked not to be named because he had no permission to discuss the matter with the media.

President Muhammed Buhari appointed Mr Idris accountant-general on June 25, 2015.

Continue Reading