National Chairman of the All Progressives Congress (APC) Chief John Odigie-Oyegun said Friday that the government had to do away with the subsidy regime because it was evident that Nigerians were not benefiting from it. Addressing a news conference at the party national secretariat, Oyegun said a few Nigerians who had manipulated the sector over the years have continued to enrich themselves from proceeds of the subsidy regime in the country, adding that it was high time the government free the economy and allow the forces of demand and supply take place. While appealing for understanding of organised labour and their civil society allies as well as the Nigerian public over the increase, the APC Chairman admitted that the price increase will force increased hardship on the Nigerian people, but was quick to add that the “economy is being freed in a way that the ordinary Nigerian will become the major beneficiary”. Oyegun said: “I invited you because of the fundamental announcement that was made within the last 24 hours because I wanted to join my voice with that of the Minister to appeal to the Nigerian public, to our unions and other civil society groups for understanding of the situation that has led to the partial deregulation of fuel prices. “Yes, Nigerians have a right to subsidy on that one natural resource that the good Lord has endowed us with. But there is no question at all that over time. The subsidy regime has become so intensely manipulated, so abused that it really was no longer operating in the interest of the Nigerian public. “I think that it has become very clear that the kind of queues that has become endemic over several regimes in this nation is a clear indication that something has gone seriously wrong with the subsidy regime. Those who were privileged were exploiting it to amass more wealth. “Meanwhile, the person for who it is basically meant has to bear the cost in higher transport fare. Each time these queues develop, of course the ordinary Nigerian bears the cost while the importers and manipulators of the system are the ones that make all the money. “I don’t know how many people have drivers. So, you are I fact having the middle class of this nation queuing at petrol stations for long hours to buy fuel at over N200 per liter. A situation like that is revibrating to the detriment of the same people that the government has sworn to protect and to promote. “What the new regime is therefore doing is to ensure availability and having fuel at all so as to prevent indecent queues at petrol stations which has become something that is no longer desirable especially considering the fact that when you eventually get the fuel, it is already overpriced. “From our point of view as a party, if has become necessary to fully and in order to recover from the economic situation which we have been plunged to totally free the economy and let the normal laws of demand and supply operate. “Of course, with government standing bye to protect the long suffering Nigerian who is at the margin. If is unfortunate, it is painful what has happened, it will increase cost in all directions. But in the medium term, in three months at best, I foresee that the prices will come crashing down when there is availability. “NNPC will continue to be in the field anyway either through the refineries whenever our pipelines are allowed to function or through importation and so will continue to be a player in the fuel supply market. Prices are bound to come down. “A typical example is what happened when mobile phones were introduced. I remember that I bought a SIM card for over N30, 000, but today, it is virtually free. If we free the fuel market, that same thing will happen which was as a result of competition is likely to happen. “In any case, the current budget did not provide for subsidy and so, if the region of subsidy is to be reintroduced, it can only divert resources from the crying needs of other sectors, including the programme to help the Nigerians living at the margin. “So, the appeal which is a very sincere appeal to the Nigerian people; yes there is a lot of hardship, yes increased pump price will also increase that hardship. But the economy is being freed in a way that the ordinary Nigerian will become the major beneficiary and we are talking of a matter of months from removing this one last bottleneck that has held the Nigerian economy down. “So, it is an appeal and we should watch what happen in the next few months as far as the fuel issue is concerned because I am sure it will come crashing down. In any case, it will free resources eventually that will be used to create good jobs which have been promised and improve the lot of the Nigerians at the margin. “That is the message the party wants to convey. The economy is in bad shape as a result of which our people are going through hard times. But unless we correct some of these chocked points within the economy, we will not revive as quickly as if should be”. Oyegun argued that the issue in the nation’ soil sector is more complicated than what Nigerians are seeing! saying “the industry has been bedeviled for a long time. Ask yourself, why we have not built new refineries. Why has the private sector not been able to build new refineries? Being a crude oil producing country,why have we not benefited from it. “Once you have government interference and controlling prices, a man do his arithmetic and come to the conclusion that if he built a refinery, he may not be able to sell at control price and so, he hands off. “What is happening now is going to free the sector and attract new investment into the sector and create jobs because people now see that government interference is off and there is profit in investing there. At the end of the day, the nation is going to benefit from the inflow into the industry” He assured that the government will do something to cushion the effect of the price increase, saying “I think that is something that will very much be under consideration. I suppose this had to be done urgently because the depredation at the fuel stations was really too much and this had to be done immediately, the issue of cushioning will come and I am sure the ministry will be looking at that”.

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