N94trn Unremitted To Federation Account’ — Falana-Led Coalition Writes Buhari
By Unini Chioma
The interim Coordinating Committee of the Alliance on Surviving Covid-19 And Beyond (ASCAB) has written a letter to President Muhammadu Buhari, debunking the claim that fuel subsidy was removed because it benefits only the rich and not the masses. The group went ahead to pulverize the lack of funds argument, listing areas where N94 trillion is trapped.
The group, in an open letter, dated 28 September and signed by Mr Femi Falana, a Senior Advocate of Nigeria, lamented that petrol prices had increased for three straight months, rising from N122 per litre in June to N142 in July, N150 in August and now N163! , saying there is no good reason for this!!
In March and April of this year the Government, the Committee went ahead, reduced the price of fuel by about 15%, but it has now increased the price again so the new price is now about 12% higher than it was last year (N145). “The new price of fuel does not make any sense in terms of the global price of crude oil and the exchange rate of the naira and the dollar.”
It went further: “Last year the price of crude was about $60 a barrel and the dollar was about N360. Now the cost of crude is about $45 and a dollar is worth about N390. So, last year the cost of barrel of crude oil was about N22,000 a barrel and now it is only N17,500 a reduction of about 20%.
Why is the Government forcing us to pay 12% more for fuel than last year when the cost of oil has significantly reduced?
Unconstitutionality and illegality of deregulation of fuel price. Mr. President, your officials and representatives argue that your government has decided to remove ‘fuel subsidy’ because it benefits only the rich and not the masses.
We reject this argument, as you rejected it during your pre-2015 electoral campaigns, when you argued correctly then that any government that said there was fuel subsidy was a fraudulent government. We agree and adopt your argument then that what is being subsidised is corruption, inability to fight corruption, incompetence and inefficiency in the oil sector.
Mr. President, your electoral promises to the Nigerian people was that the Federal Government under your watch would subsidise production and not importation, that you would make the refineries work and in fact build more refineries so that apart from satisfying domestic demand, your government would also export petroleum products.
Unfortunately, your Government has failed to fulfil these electoral promises. Mr. President, your pre-election electoral promise remains the only solution. The ordinary people of Nigeria continue to reject any other measure as fraudulent, anti-poor people and pro-oil dealers.
The policy of fuel price increases hurts the masses. There is a relationship between the price of fuel and the prices of all other goods and services. The masses rely heavily on road transportation; once there is a rise in transportation costs, the prices of all ither goods and services are bound to rise simultaneously. Therefore, the policy of fuel price increase is a conscious policy to directly impoverish the poor.
Mr President, when the N30,000 National Minimum Wage was passed into law, that rate lagged behind the rate of inflation. With the increases in electricity tariffs since 2016 and the recent increase by about 100%, coupled with increases from about N120/litre of fuel in June 2020 to N162/litre in September, the rise in VAT from 5% to 7.5%, devaluation of the currency among other policies, only a conquered people with slavish mentality would not resist the punitive economic policies your government has imposed on them. Nigerians have been driven to the wall and now have no choice but to resort to section 40 of the Constitution to peacefully protest policies that seek to annihilate them.”
Below is ASCAB’s letter to Buhari:
28th September, 2020
The President
Federal Republic of Nigeria Office of the President
Aso Rock Presidential Villa Federal Capital Territory Abuja.
Dear Mr. President,
Open letter to Mr. President:
GOVERNMENT POLICIES MAKE THE DOWNTRODDEN POORER
Introduction
This letter has been authorised by the interim Coordinating Committee of the Alliance on Surviving Covid-19 And Beyond (ASCAB) on behalf of the teeming masses of Nigeria on the main issues of unprecedented and sharp increases in fuel price and electricity tariff.
Mr. President, in comparing the burden any past government has heaped on the masses with the agony the masses go through today under your government, the public perception of the effects of public policies under your government is akin to the Biblical verse, which says:
“My father made your yoke heavy; I will make it even heavier. My father scourged you with whips; I will scourge you with scorpions” (1 Kings 12”14).
The over 80 subscribing organisations to ASCAB had resolved to support the nationwide strike and mass protests called by organised labour and backed by their rank and file members.
Despite the calling off of the strike, ASCAB will still be supporting protests to achieve the aims of the strike of a reversal of the prices of fuel and electricity. We will continue to support the strike by ASUU for proper funding of the education sector. We will also support the unions in the health sector for proper funding for that sector. Finally, will continue to support protests and strikes for the implementation of agreements with the Government in the education and health sectors and for the full implementation of the minimum wage of N30,000 in all states.
We will also be campaigning for another increase in the minimum wage next year.
The argument that ‘fuel subsidy’ because it benefits only the rich and not the masses
Mr. President, your officials and representatives argue that your government has decided to remove ‘fuel subsidy’ because it benefits only the rich and not the masses.
We reject this argument, as you rejected it during your pre-2015 electoral campaigns, when you argued correctly then that any government that said there was fuel subsidy was a fraudulent government. We agree and adopt your argument then that what is being subsidised is corruption, inability to fight corruption, incompetence and inefficiency in the oil sector.
Mr. President, your electoral promises to the Nigerian people was that the Federal Government under your watch would subsidise production and not importation, that you would make the refineries work and in fact build more refineries so that apart from satisfying domestic demand, your government would also export petroleum products.
Unfortunately, your Government has failed to fulfil these electoral promises. Mr. President, your pre-election electoral promise remains the only solution. The ordinary people of Nigeria continue to reject any other measure as fraudulent, anti-poor people and pro-oil dealers.
The policy of fuel price increases hurts the masses. There is a relationship between the price of fuel and the prices of all other goods and services. The masses rely heavily on road transportation; once there is a rise in transportation costs, the prices of all ither goods and services are bound to rise simultaneously. Therefore, the policy of fuel price increase is a conscious policy to directly impoverish the poor.
Mr President, when the N30,000 National Minimum Wage was passed into law, that rate lagged behind the rate of inflation. With the increases in electricity tariffs since 2016 and the recent increase by about 100%, coupled with increases from about N120/litre of fuel in June 2020 to N162/litre in September, the rise in VAT from 5% to 7.5%, devaluation of the currency among other policies, only a conquered people with slavish mentality would not resist the punitive economic policies your government has imposed on them. Nigerians have been driven to the wall and now have no choice but to resort to section 40 of the Constitution to peacefully protest policies that seek to annihilate them.
Petrol prices have increased for three straight months, rising from N122 per litre in June to N142 in July, N150 in August and now N163! There is no good reason for this!!
In March and April of this year the Government reduced the price of fuel by about 15%, but it has now increased the price again so the new price is now about 12% higher than it was last year (N145). The new price of fuel does not make any sense in terms of the global price of crude oil and the exchange rate of the naira and the dollar.
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