NACCIMA advocates phased subsidy removal

By FRANKLIN ALLI
The Nigerian Association of Chambers of Commerce, Industry,
Mines and Agriculture (NACCIMA) has called on the Federal
Government to douse the raging fuel subsidy removal protests
across the country by adopting phased subsidy removal.
In a position statement, forwarded to the Presidency and made
available to journalists in Lagos, NACCIMA said: “We agree with
the Federal Government that fuel subsidy removal is inevitable
with deregulation of the downstream sub-sector of the
petroleum industry.
“However, we are convinced that the timing of this removal is
wrong and did not address the immediate effect on the citizens
and business and may not achieve the desired result.
“We, therefore, counsel as follows “Government should diligently
re-consider the adoption of phased subsidy removal that relates
closely with available local production
“The existing four refineries should be maintained to become
fully functional within six (6) months, and thereafter made ready
for privatisation under the Chairmanship of Mr. Vice President.
“Government should consider and revise its decision for an
agreed period to enable the Belgore Committee to determine
the true cost of the subsidy by first removing/extracting alleged
corruption element
“The Government should urgently push for the speedy passage
of the Petroleum Industry Bill, which has the capacity to
generate more than US$5 billion in savings for the country
annually. “All private operators previously granted licenses for
refineries should be required to be re-invited to partner with
Government and be assured of the supply of feed-stock of crude
oil; the refusal of which NACCIMA understands aborted their
intervention
*The importation and distribution of petroleum products should
be considered sensitive enough to be made transparent at this
early stage.”
“However, the true subsidy must first be determined before
commencement of a phased removal, preferably after existing
and new private refineries are enabled and assisted to meet
nation’s demand. To avoid worsening corruption, inefficiency,
leakages and waste associated with public utilities, Government
should resist the temptation to build and operate new refineries,
while existing ones should be privatised.
If Government had been more advisedly patient and allow for
on-going apparently meaningful and effective consultations to
be concluded, in addition to the awaited National Assembly
conclusion, it would have been much easier to douse tensions,
even as we accept the saying that “If a Leader would wait for
everyone to changes, nothing would ever be accomplished.”