The Organised Private Sector of Nigeria, OPSN, yesterday, presented three prerequisites that will ensure a rancor-free removal of the fuel subsidy and prevent economic disruption and industrial disharmony in the country.

The OPSN comprises Manufacturers Association of Nigeria, MAN; Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA; Nigeria Employers’ Consultative Association, NECA; Nigeria Association of Small Scale Industries, NASSI, and Nigeria Association of Small and Medium Enterprises, NASME.

Addressing newsmen on the state of the nation, Chairman of OPSN and President of NECA, Mr. Taiwo Adeniyi, expressed concerns over Nigeria’s rising debt profile.

Proffering ways to ensure a rancor-free subsidy removal, Adeniyi said: “The controversy being generated by fuel subsidy is getting to a crescendo and it will be important to guide government and other stakeholders.

“While there are proponents and opponents of the fuel subsidy regime, three things are indisputable: The fuel-subsidy regime seems fraught with corruption, with few petroleum importers benefiting. The subsidy payment is a huge leakage from the revenue portfolio of the nation and there is a need to address it urgently to free up needed funds for development. Nigerians should not suffer for a product that their nation is endowed with and neither should they suffer for the inefficiencies in government.

“It is no gainsaying that the current subsidy regime is not sustainable, with the subsidy payment hovering around N150billion monthly and around N2trillion annually. With the removal of subsidy, the funds that would be saved could help address the wide infrastructural deficits and another gap in the country.

“While it is desirable to remove the fuel subsidy, it is also important for Government to take a step to address the socio-economic issues that would arise. While we support the removal of the fuel subsidy, we urge that Government should first, as a matter of boosting Nigerians and other stakeholders’ confidence and demonstrating its goodwill, address the following as a prerequisite to the total removal of the subsidy: The resuscitation of the four refineries that millions of dollars had been invested in their Turn Around Maintenance, TAM, or outright sale of the refineries to private investors to enhance their sustainability.

“Specific relieves to address the anticipated drastic reduction in the citizen’s disposable income and standard of living. It is expected that an increase in fuel price will have a direct and immediate consequence on transportation and costs of foodstuff, amongst others. The touted N5,000 monthly stipend to 40million poorest of the poor will most likely aggravate tempers. A more sustainable, well-thought-out relief should be proposed.

“Specific relief to workers and organized businesses not only to reduce the immediate effects of the increase but reliefs that will ensure and enhance the capacity of businesses to remain sustainable and continue to provide jobs.

“While we note the short-term hardship that the removal of subsidy will cause the generality of Nigerians, it is important to state that the long-term benefits far outweigh the short-term pains, as the current beneficiaries of the subsidy are not the Nigerian masses.”

Rising debt profile

On the country’s rising debt profile, he said: “At the last count, the nation’s public debt stock hovers around N33.107 trillion with potential to increase further amid a shortage of revenue to fund the N16.39 trillion 2022 National Budget. This is not only worrisome but also calls for caution.”