NECA Chides FG On Rising Debt, Subsidy Regime
The Nigeria Employers’ Consultative Association has asked the Federal Government to check the nation’s increasing debt profile and the fuel subsidy regime, saying they remained clogs in the wheel of the nation’s move towards development.
This was contained in a statement released in Lagos on Monday, a copy of which was made available to our correspondent.
The Director-General of NECA, Mr Timothy Olawale, who spoke in Abeokuta, also called on the government to deregulate the downstream sector of the nation’s oil and gas industry, in order to stop the incidence of petrol scarcity and the attendant suffering on Nigerians.
He noted that the nation’s continued dependence on offshore sources for petroleum products had led to perennial shortage of petroleum products, loss of productive man-hours as a result of endless hours spent at filling stations, massive and unimaginable corruption in the management of the subsidy dispensation.
He said, “Increasing debt profile and the corruption-ridden fuel subsidy regime are twinevils that have clogged the wheel of the nation’s march towards development in the last decade.
“Government should do the needful by immediately putting in place a process and enlightenment machinery that will lead to the deregulation of the downstream oil sector and a deliberate disengagement from the debt burden.
“Like a sore that has refused to heal, the recurrent issue of fuel scarcity has reared up its ugly head again. We are where we are today because despite past sound counsel, government has not been faithful to the deregulation of the PMS market of the downstream sector of the oil and gas.
“Let us ponder and ask ourselves where the non-deregulation of the petroleum sector has led our economy: continued dependence on offshore sources for petroleum products supply, perennial shortage of petroleum products, loss of productive man hours as a result of endless hours spent at filling stations, massive and unimaginable corruptions in the management of the subsidy dispensation.
“These are not sustainable.”
Giving insight into the need for urgent deregulation of the downstream oil sector, the NECA boss stated that “over the last decade, the country has spent over N9tn on fuel subsidy, about N15.5tn on Capital Expenditure, N2.1tn on Health and about N3.9tn on Education. This is a misplacement of priority and shows that critical developmental items such as education, health and infrastructure have suffered due to the expenditure on fuel subsidy.”
