
…ask immediate reversal of fuel price, electricity tariff
The Peoples Democratic party in the House of Representatives has called on President Muhammadu Buhari to as a matter of urgency to reverse pump price of fuel and electricity tariff to meet the yearnings of Nigerians and realities of the moment.
The caucus chaired by its leader Rep. Kingsley Chinda (PDP Rivers) reached the resolution at its 18th virtual meeting, where it reviewed issues of national interest particularly, the recent cost increases by FG. This includes increase in pump price of fuel; electricity
Others include Stamp duties, telecommunication charges and Implementation of 7.5% Value Added Tax (VAT).
The caucus noted that “The COVID-19 pandemic has no doubted inflicted great hardship globally and have seen most economies fluttering”
“Conversely, the Nigerian Federal government led by President Muhammadu Buhari has found this inauspicious time to implement what can only be described as strangle-hold economic policies on the lives of perceived helpless Nigerian citizens”
on the issue of increase in pump price, it said that the increase inflicted on Nigerians will be the third hike since the advent of this administration.
” From an inherited pump price of N85 per litre, they have systematically increased it to an exorbitant, strangulating cost of N162 per litre. All these have been achieved without consultation or engagement with the Nigerian people, at whose pleasure he serves”
Rep Chinda further said that “Recall that in 2015 when this government took over the mantle of leadership, cost of crude was 93.17 to 48.66 USD; pump price of fuel in Nigeria was N85 per litre and about N500 Billion was said to be paid as subsidy annually”
” In 2020, crude sells for 39.68USD the pump price of fuel is N162. Ordinarily, lower cost of crude should entail lower cost of fuel; At every increase, Nigerians are told that subsidy payment has been removed and that price of fuel will be determined by market forces.”
“Paradoxically, in 2020 the government budgeted 450B for subsidy, whilst PPRA gave a realistic estimate of 750.81B to be spent by NNPC as subsidy in 2020, higher than N500 Billion even with almost 95% increase in pump price.”
Furthermore, President Buhari also promised to “Revive and reactivate our minimally performing refineries to optimum capacity and stabilise oil price. This is a promise far taller than his imagined economic prowess. The state-owned refineries are operating at a ridiculous fraction of their capacities. Nigeria (an oil producing country) continues to import more than 90% of her finished products.”
Information Minister, Lai Mohammed in his attempt to defend the increase in pump price of petrol said that “Despite the recent increase in the price of fuel to N162 per litre, petrol price in Nigeria remains the lowest in the west/central African sub-region.”
The caucus said that “What Minister Lai Mohammed conveniently left out is the “general rule that richer countries have higher price for gasoline, while poorer countries and countries that produce and export oil have significantly lower prices. The difference in prices across countries is due to various taxes and subsidies they decide to impose”.

“Hon. Minister didn’t take into consideration the fact that most of these other countries with higher cost have functional and reliable systems in place – public transportation, power and social security for its citizens; their standard of living and minimum wage are far above Nigeria’s; have constant and affordable power supply, and their citizens do not depend on alternative power generation like Nigerians do with generators.”
Again, the Honourable Minister failed to draw a comparison between the cost of PMS in Nigeria and other traditional oil producing but poor countries. Nigeria sells at 0.39USD, higher than Algeria (0.36USD), Angola (0.26USD) and Sudan (0.14USD)
“On what basis then, is the comparison made by Minister Lai?
“More worrisome is that this increase is coming at such a time when, the masses are also faced with a hike in the prices of food, especially the most basic staple food items (rice. garri and yam) yet the Government continues to live in self-denial claiming that there is a reduction in the cost of food items.” The Government rather than alleviate the suffering of citizens, chose to gift Nigerians a pre-October 1 gift with an increase in the prices of fuel, electricity tariff and full implementation of 7.5% VAT.
On electricity, the caucus recalled that the President on May 29, 2015 said thus:
“No single cause can be identified to explain the Nigerian poor economic performance over the years than the power situation. It is a national shame that an economy of over 180 million generates only 4000 MW, and distributes even less. We will not allow this to go on.”
CEIC data states that “Electricity production in Nigeria reached 7,720 GWh in March 2020. Electricity production data of Nigeria is updated quarterly, averaging at 6,901 GWh from March 2015 to March 2020. The data reached an all-time high 9,936 GWh in Sep 2015 and a record low of 3,247 GWh in June 2009.”
“President Buhari unequivocally and unconditionally promised to increase the Megawatts generated and make power steady, available and affordable. However, power supply remains epileptic.
On the issue of insecurity, the caucus also reminded the president of his promises when he said that “I will ensure that under my watch, no force, external or internal, will occupy even an inch of Nigerian soil.”
“These were comforting words belted by president Buhari to Nigerians during the 2015 election campaigns.”
“Six years after President Buhari took over the leadership of this country, insecurity is at an all-time high, with insurgent activities, banditry and herdsmen attacks which was localised in the North-East and kidnapping in the South-South, have all today assumed a national dimension and prevalent in every part of the country. Over half of the Local Government Areas in Bornu is under the effective control of insurgents.”
“The effect of these unsavoury economic policies is hyperinflation which has affected even the most basic food items and services in the market. The compound negative effect on security, physical and mental health and wellbeing cannot be over emphasised”
“Nigerians have gotten to the end of their tenders and will resist further draconian and non-people oriented policies, as the Federal Government has consistently flouted the contract of good governance entered with the people as enshrined in Chapter Two of the Constitution”
“The Federal government is hereby, advised to focus on working out modalities to ameliorate the pains and sufferings of an already hardworking, but traumatized people of Nigeria”
In addition to this call for a reversal, we also demand the following:
“That the four Refineries (PH I & II, Warri and Kaduna) be revamped to function optimally before any subsidy removal is considered after proper consultations with all stakeholders, including the National Assembly that holds the peoples mandate.
Stay the increase of electricity tariff, pending the provision of proper metering in all homes with regular and constant electricity to the populace.
“Stay the further implementation of 7.5% VAT increase to allow Nigerians recover from the effects of the COVIC- 19 pandemic”.
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