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| MRS OKAURU |
EDITORIAL: THE POLITICS OF PETROLEUM SUBSIDY: MRS ALLISON DEZEANI MADUEKE VS MRS OMOGUI OKAURU; ANALYSIS OF THE PROBLEMS & PROSPECTS OF OIL SUBSIDY REMOVAL & CONFLICTING FRONTIERS.
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The issue of petroleum subsidy removal is a hard nut to crack as both sides of the argument have good tenable and acceptable reasons for the subsidy to be removed and for it to remain.
The conflicting frontiers have become an interesting aspect of public discuss, as great sons and daughters of the Nigerian Federation engage in the politics of nay and ya…yin and yang about the proposed removal.
While those who want it to be removed posits reasons of prudent economic management, balance of budget position, rapid social economic developments in other viable areas of the economy that is affected by the subsidy; as well as in general industrialization of the polity and in capital flights, which are acceptable and tenable reasons for the removal of the oil subsidy; to free the economy to grow and diversify to a full market economic leverages at par with other economic giants of the world.
The proponents of this view which include the President of the Nigerian Federation H.E Goodluck Jonathan, Mrs. Alison Maduekwe the Petroleum Minister, Prof. Aminu Jubril a former Petroleum Minister and a host of other great sons and daughters of the Nigerian Federation. Their argument is sound , realistic and presentable as a solution to boost the Nigerian ailing economy , create jobs and attract more direct foreign investments into the petroleum industry in the context of encouraging private refineries, Tran Saharan gas pipeline to take off successfully based on market forces…etc..
On the other hand the CEO of FIRS of Nigeria, Mrs Omogui Okauru has cried out passionately yesterday that the petroleum subsidy removal will have adverse effect on the economy as in the direct increase in prices of petroleum products will translate to direct increase in the prices of good and services in the country on a National basis.
She tendered strong arguments to support her observations as she posited that it may crush the real sector of the economy as in the manufacturers paying more in the cost of overheads on production, this may lead manufacturers to downsize their work force and will create unemployment and have a direct effect on the Internally Generated Revenue which is her department, and consequently counter productive.
As the internally generated revenue will plummet; which may endanger her office from meeting the projected internal revenue generation targeted by the Federal Government, addressed to operate a disciplined fiscal policy for the first time in Nigerian History by the FG; will be adversely affected.
Her streams of consciousness is rightly guided as she nevertheless recognized and appraised the advantages of removing the Petroleum subsidy as economically justifiable on a national basis especially in its capacity to free the economy to adequate laiser faire that will invigorate genuine national economic growth and developments.
Mrs Okauru is also a member of the Economic and Industrial Team of the Nigerian Policy thrust headed by the Finance Minister Mrs. Okonjo Iweala.
At this juncture we have to add quickly that President Jonathan has somewhat come to equity by advising that the subsidy removal, be in stages, as in subsidy to be given to the Kerosene products, while the petrol and diesel products will not enjoy subsidies…
We believe at National Peoples News ISSN: 1595-0549, that an all embracing meeting be held among the various stake holders of the economy with a view to evolve a good win-win solution to the problem… this can be achieved.
The conflicting frontiers have become an interesting aspect of public discuss, as great sons and daughters of the Nigerian Federation engage in the politics of nay and ya…yin and yang about the proposed removal.
While those who want it to be removed posits reasons of prudent economic management, balance of budget position, rapid social economic developments in other viable areas of the economy that is affected by the subsidy; as well as in general industrialization of the polity and in capital flights, which are acceptable and tenable reasons for the removal of the oil subsidy; to free the economy to grow and diversify to a full market economic leverages at par with other economic giants of the world.
The proponents of this view which include the President of the Nigerian Federation H.E Goodluck Jonathan, Mrs. Alison Maduekwe the Petroleum Minister, Prof. Aminu Jubril a former Petroleum Minister and a host of other great sons and daughters of the Nigerian Federation. Their argument is sound , realistic and presentable as a solution to boost the Nigerian ailing economy , create jobs and attract more direct foreign investments into the petroleum industry in the context of encouraging private refineries, Tran Saharan gas pipeline to take off successfully based on market forces…etc..
On the other hand the CEO of FIRS of Nigeria, Mrs Omogui Okauru has cried out passionately yesterday that the petroleum subsidy removal will have adverse effect on the economy as in the direct increase in prices of petroleum products will translate to direct increase in the prices of good and services in the country on a National basis.
She tendered strong arguments to support her observations as she posited that it may crush the real sector of the economy as in the manufacturers paying more in the cost of overheads on production, this may lead manufacturers to downsize their work force and will create unemployment and have a direct effect on the Internally Generated Revenue which is her department, and consequently counter productive.
As the internally generated revenue will plummet; which may endanger her office from meeting the projected internal revenue generation targeted by the Federal Government, addressed to operate a disciplined fiscal policy for the first time in Nigerian History by the FG; will be adversely affected.
Her streams of consciousness is rightly guided as she nevertheless recognized and appraised the advantages of removing the Petroleum subsidy as economically justifiable on a national basis especially in its capacity to free the economy to adequate laiser faire that will invigorate genuine national economic growth and developments.
Mrs Okauru is also a member of the Economic and Industrial Team of the Nigerian Policy thrust headed by the Finance Minister Mrs. Okonjo Iweala.
At this juncture we have to add quickly that President Jonathan has somewhat come to equity by advising that the subsidy removal, be in stages, as in subsidy to be given to the Kerosene products, while the petrol and diesel products will not enjoy subsidies…
We believe at National Peoples News ISSN: 1595-0549, that an all embracing meeting be held among the various stake holders of the economy with a view to evolve a good win-win solution to the problem… this can be achieved.
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