The Arewa Economic Forum has called upon President Bola Tinubu to reconsider the subsidy removal decision, proposing instead that the additional funds from the Federal Allocation Accounts Committee be directed to states for reinstating the Premium Motor Spirit subsidy.
The forum recommended that the decision be implemented until the President can guarantee the transparency and accountability of state governors to citizens, within the limits of his constitutional authority and political reach.
These remarks were conveyed by Ibrahim Dandakata, the Chairman of the forum, during a press briefing in Abuja on Thursday, where solutions to the nation’s problems were proposed.
He emphasized the tough times faced by citizens grappling with the soaring costs of essentials like food, medications, and basic needs, attributing it to hyperinflation triggered by the removal of fuel subsidies and the steep depreciation of the naira.
Tinubu, in his inaugural address on May 29, declared an end to petroleum subsidy regime.
The announcement led to a spiralling cost of goods and services, with fuel prices leaping by over 100 per cent.
In his discourse titled “Reflecting on the Subsidy Removal Policy,” Dandakata noted that the significant funds allocated to state governors are not trickling down to the grassroots level due to governors’ failure to invest in initiatives that would stimulate the state economy and their lack of commitment to providing relief measures for the people.
He said, ‘To be fair to him, President Bola Ahmed Tinubu made it unambiguously clear during electioneering that he would remove fuel subsidy if he won the election. What he didn’t, however, warn Nigerians of is the unprecedented hardship this singular decision will cause for our people.’
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‘But fuel subsidy removal is not all about bad news. It has at least caused a massive increase in the monies shared at the Federation Account Allocation Committee meetings, with states going away with humongous figures every month. But how has more money for governors to play with affected the lives of the masses? How?’
‘The forum has found out that the huge sums of money available to state governors are not trickling down because the governors are not investing in areas that will reflate the state economy and are not committed to providing palliatives for the people.’
‘A check we conducted on recent FAAC allocations has shown that some of the states have had their allocations increased by up to 90 per cent with little or no improvement in the lives of the people. The percentage increase in the allocations to states after fuel subsidy removal is humongous.’
‘We are therefore using this platform to call on President Tinubu to reverse the subsidy removal policy and use the extra money FAAC has been giving to the states to resume paying subsidy on PMS. The President should do this urgently if he knows he can’t find a way within the limit of his constitutional powers and political influence to make the governors more accountable to the people.’
In addition, the forum emphasized the need for the government to establish a reliable social register for distributing food items directly to Nigerians, bypassing state government participation.
‘We are also calling on the federal government to put together a proper social register that can be used to distribute food items to Nigerians without the involvement of the state governments,’ he said.
Touching on the forex crisis and economic challenges, Dandakata urged the government to demonstrate strong political determination in curbing the depreciation of the naira by outlawing the practice of storing dollars in homes or offices and clamping down on all hoarders of dollars.
He mentioned that analysis suggests a pattern where the price of dollars rises after every FAAC meeting.
He said ‘We are also of the opinion that the federal government must summon adequate political will to arrest the free fall of the Naira compared to the rising dollar. Dollar is not a legal tender in Nigeria. The government should therefore ban the practice of keeping dollars at home or in offices, and clampdown on all hoarders of dollars.’
‘The government should also investigate why dollars go up after every FAAC meeting. Relevant government agencies should also ban the practice of paying for goods and services online in dollars. Everything must be in Naira as far as it is done by a Nigerian in Nigeria. If we don’t stop our obsession with the dollar, our Naira will never rise.’
Regarding the matter of state policing, the forum advocated for the government to revitalize and broaden the Police Constabulary, equipping it with the necessary logistics to assist security agencies in combating local-level crimes, instead of instituting state police forces that could be subject to the governor’s directives.