Subsidy Removal: OPS Raises Alarm over Consequences on Nigerians
The Organised Private Sector (OPS) has taken a swipe on the federal government policies saying that rather than address the hydra-headed socio-economic problems that have engulfed the country, government policies have worsened the hardship as poverty continues to rise. It also noted that the planned removal of subsidy on fuel will only worsen the already bad situation in which Nigerians found themselves.
The OPS, which bared its mind on the state of the economy, is worried that current government policies have not translated positively on the populace just the high cost of doing business and harsh economic environment have led to the collapse of many businesses.
Dr. Herbert Demola Ajayi, national president of the Nigerian Association of Chambers of Commerce, Industry, Mine and Agriculture (Naccima), said the business community continued to grapple with the usual problems of challenging operating environment, policy inconsistencies and infrastructural constraints, particularly the perennial power and energy crisis.
Ajayi, whose association is currently coordinating the secretariat of the Organised Private Sector (OPS), noted that the hope of the citizenry for an improved economy has also been dashed since the federal government released the Medium Term Fiscal Framework (MTFF) strategy for the next four years penultimate week, leading to a huge national outcry against one of its contents - the planned removal of fuel subsidy effective January 2012.
On the currency regime, Ajayi said the continued unstable value of the Naira against the US Dollar is unrealistic and a major threat to the implementation of the 2012 federal budget just as he agued that the recent increase in tariff on electricity under the current inefficient supply of electricity is unacceptable and needs to be reviewed as it increases the cost of doing business.
On wealth creation, he said in spite of the stupendous wealth generated by the country, the quality of live of the citizenry has remained low, regretting that rather than address the problem, the cost of governance has continued to rise.
“It is a known fact that Nigeria is rich in crude oil and gas where it has earned billions of petrodollars. However, the country seems to be facing the problem of successfully translating the huge oil wealth into prosperity for all Nigerians,” he said.
According to him, “per capita oil revenue is supposed to have significant positive impact on per capita household consumption, electricity generation, GDP, agriculture and manufacturing, but this is yet to be realized as the need for further improvement of the well-being of the citizens is now a human rights issue.”
Ajayi noted that Nigeria runs one of the most expensive democracies in the world. “There is urgent need to address it by releasing more funds for agriculture and infrastructural development that will empower the large army of unemployed youths in the country and improve the welfare and standard of living of Nigerians,” he said.
The OPS, which bared its mind on the state of the economy, is worried that current government policies have not translated positively on the populace just the high cost of doing business and harsh economic environment have led to the collapse of many businesses.
Dr. Herbert Demola Ajayi, national president of the Nigerian Association of Chambers of Commerce, Industry, Mine and Agriculture (Naccima), said the business community continued to grapple with the usual problems of challenging operating environment, policy inconsistencies and infrastructural constraints, particularly the perennial power and energy crisis.
Ajayi, whose association is currently coordinating the secretariat of the Organised Private Sector (OPS), noted that the hope of the citizenry for an improved economy has also been dashed since the federal government released the Medium Term Fiscal Framework (MTFF) strategy for the next four years penultimate week, leading to a huge national outcry against one of its contents - the planned removal of fuel subsidy effective January 2012.
On the currency regime, Ajayi said the continued unstable value of the Naira against the US Dollar is unrealistic and a major threat to the implementation of the 2012 federal budget just as he agued that the recent increase in tariff on electricity under the current inefficient supply of electricity is unacceptable and needs to be reviewed as it increases the cost of doing business.
On wealth creation, he said in spite of the stupendous wealth generated by the country, the quality of live of the citizenry has remained low, regretting that rather than address the problem, the cost of governance has continued to rise.
“It is a known fact that Nigeria is rich in crude oil and gas where it has earned billions of petrodollars. However, the country seems to be facing the problem of successfully translating the huge oil wealth into prosperity for all Nigerians,” he said.
According to him, “per capita oil revenue is supposed to have significant positive impact on per capita household consumption, electricity generation, GDP, agriculture and manufacturing, but this is yet to be realized as the need for further improvement of the well-being of the citizens is now a human rights issue.”
Ajayi noted that Nigeria runs one of the most expensive democracies in the world. “There is urgent need to address it by releasing more funds for agriculture and infrastructural development that will empower the large army of unemployed youths in the country and improve the welfare and standard of living of Nigerians,” he said.
