TUC: Nigerians not against petrol subsidy removal -- but government must lead by example

TUC: Nigerians not against petrol subsidy removal — but government must lead by example

August 26

09:15 2022

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Festus Osifo, president, Trade Union Congress (TUC), says Nigerians are not against the removal of the petrol subsidy, but the government must earn the trust of its citizens.

Osifo spoke during a panel session on Thursday at an energy event in Lagos.

Speaking during a session titled ‘energy transition, PIA, petroleum pricing and the way forward for the downstream sector’, the union leader said the majority of Nigerians were not interested in the energy transition but were only concerned about affordable and reliable energy.

Osifo, who is also the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), noted that the downstream sector had not reached its potential due to the thorny issue of petrol subsidy.

He said apart from communicating with the people to create an attitudinal change, the government must lead by example by cutting out wasteful spending and making sacrifices that would help Nigeria overcome its economic challenges.

“The presidency should come out and say that they are reducing their budget. The national assembly also needs to do so. That is leading by example,” he said.

“Nigerians are not really averse to the subsidy removal but the government must be ready to demonstrate not just by talking but by doing and by acting.

“The government must demonstrate that if subsidy must go, this must reflect in our education, it must reflect in our healthcare and also our level of infrastructure.

“So, the trust deficit that Nigerians have must be addressed before we can make any progress.”

However, Olumide Adeosun, chairman, Major Oil Marketers Association of Nigeria (MOMAN), called for the phased removal of the petrol subsidy to mitigate its impact on Nigerians.

In November 2021, the federal government said it would replace petrol subsidy with ‘transport allowance’ for the poorest Nigerians –– but it was scrapped.

Last week, Zainab Ahmed, minister of finance, budget and national planning, said the federal government would halt the costly petrol subsidy in June 2023.