President Goodluck Jonathan has insisted that the Federal Government would still remove fuel subsidy, although the government would first discuss the proposal with Nigerians before removing the subsidy.
The President made this statement while speaking at the Nigeria Summit 2013 while speaking at The Economic Conference.
“We cannot continue to waste resources meant for a greater number of Nigerians to subsidise the affluent middle class, who are the main beneficiaries (of fuel subsidy).
“We believe that as we progress, government is going to continue to enlighten Nigerians on the need to remove fuel subsidy,” he said.
The Federal Government had attempted the removal of fuel subsidy last year when it suddenly announced the total removal of subsidy on petrol on January 1, 2012, raising the price of a litre of the commodity to N141 from N65.
The removal was, however, suffered a setback when it was vehemently rejected by the citizens, who staged weeklong mass demonstrations in major cities of the country, forcing the government to partially remove the subsidy and reduce petrol price from N141 to N97 a litre.
Going by the current pricing template of the Petroleum Pricing Products Regulatory Agency, which puts landing cost of a litre of petrol is currently N131.10, with total distribution margins of N15.49, Nigerians could be paying as much as N146.59 per litre should fuel subsidy be removed.
The President also said the government was planning to create 480,000 jobs through its transformation programme this year.
He said, “Fifty per cent of our population is below the age of 35. That is why we established the YouWin programme. The idea is to make entrepreneurs to create jobs for themselves so that one youth can employ more than five youths. Our target is that this programme will create 80,000 jobs.
“Through the SURE-P programme, we are targeting 400,000 jobs this year. This is part of our transformation agenda, which is based on policies and programmes to promote job creation, engender private sector led inclusive growth, and promote peaceful environment. Our ultimate goal is to have everyone occupied in our development programme so as to improve the standard of living of our citizens.”
The President also added that the reforms of his government were encouraging significant changes in the agricultural sector, even as the government was committed to finding sustainable solutions to terrorist threats currently confronting the nation.
He said, “We have adopted a value-chain approach to accelerate the production of staple foods such as rice. The Mortgage Refinance Company will bridge the housing gap in the country and improve the number of mortgages to 200,000 within the next few years from its current 20,000.
“Our economic transformation is not without major challenges. It is important for the business and international community to recognise that these security challenges are part of a rising global phenomenon. Terrorist groups operating within the country are increasingly linked to other groups operating internationally.
“The first of our three-prong approach to addressing this menace comprises the strengthening of counter terrorism cooperation with neighbouring countries. Now more than ever before, the international community is giving support in the fight against terrorism.
“Our second approach is openness to political dialogue. This can only be realistic when the groups involved in the act of terror can relinquish their anonymity, come forward and make their objectives known.
“Our third approach is economic inclusion. This strategy targets the disadvantaged and unemployed, particularly in the northern part of the country. We are also diversifying the economy away from oil to agriculture, housing, the creative industry and other sectors that can generate jobs.”
He noted that the three tiers of government were now meeting regularly to appraise government’s anti-corruption fight.
The Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, while speaking on where the agenda for the structural reforms of the economy currently stood, said the Nigerian economy had improved from its 2.3 per cent growth rate when the present administration assumed office in 2003.
She said Nigerians were asking questions and demanding for change, which the present administration was focused on, by putting a system in place to check corruption in governance.
“We are working on fighting corruption, which is about building institutions. This is where other countries are getting it right; it is not as if they don’t have corrupt people. Our system is antiquated and we have to put in place a new system,” the minister said.
The conference also had in attendance the immediate past Brazilian president, Lula da Silva, who explained that it was time for the African continent to work together to ensure the prosperity of their people instead of depending on aid from foreign countries.
He added that Nigeria and Brazil have large potentials that could be harnessed for the growth, development and progress to both countries, and encouraged Africa to rise up to the present global challenge in economy, trade and investment and other sectors in order to ensure greater future and enduring prosperity for its people.
Corporate leaders at the summit said regional integration would enhance the competitiveness of the African economies. Group managing director, First Bank of Nigeria (FBN) Plc, Mr. Bisi Onasanya, said competitive regional integration could only be built on efficient domestic capacity noting that companies would have to fully optimize opportunities in their immediate jurisdictions and develop competitive niches before being able to leverage on regional integration.
He noted that the globalisation of the financial markets has removed barriers and instituted operating framework for regional financial integration, although he stressed the need for financial services regulator in each country to ensure financial discipline and strict regulation as well as foster regional cooperation on financial regulation.
Vice President, West Africa, Procter & Gamble, Manoj Kumar, said governments need to focus on timely execution of existing policies and provision of supporting infrastructure to enhance regional economic integration, as the problem of regional integration and economic development has less to do with paucity of policies but more about the political and institutional wills to implement policies.
He said provision of adequate infrastructure would reduce turnaround time for trade within the region, reduce costs of products and ensure consumers benefit more from economy of scale and synergies.
Ministers at the event apart from Mrs Okonjo-Iweala were: Olusegun Aganga (Trade and Investment); Diezani Alison-Madueke (Petroleum); Samsudeen (National Planning); Akinwumi Adesina ( Agriculture) Chinedu Nebo (Power) and Bashir Yuguda (Minister of State for Works).