Tinubu Defends Subsidy Removal, Seeks N500bn Approval from House for Palliatives

•Says policy to benefit majority of Nigerians  

•Declares he’s aware people going through hard times

Deji Elumoye, Ndubuisi Francis and Juliet Akoje in Abuja

President Bola Tinubu yesterday defended his decision to remove petrol subsidy, just as yesterday, he requested the House of Representatives to amend the 2022 Supplementary Appropriation Act in order to accommodate N500 billion for palliatives to vulnerable Nigerians.

The president in a letter addressed to the Speaker of the House, Abbas Tajuudeen, which was read at plenary yesterday, said the amendment was to extract N500 billion from the 2022 supplementary budget to provide palliatives to cushion the effect of subsidy removal.

The letter read: “I write to request for the amendment of the 2022 supplementary Appropriation Act.

The request became necessary to provide necessary palliatives to mitigate the effects of the removal of fuel subsidy on Nigerians.

“Thus, the sum of N500 billion has been extracted from the 2022 supplementary appropriation act of N819.536 billion for the provisions of palliatives to cushion the effects of subsidy removal. I seek the expeditious consideration of this request.”

Relatedly, Tinubu yesterday, said subsidy removal was done in the interest of the larger Nigerian society.

He also explained that he was conscious of the hardship efforts to revive the economy, especially the removal of fuel subsidy, had imposed on Nigerians, assuring that savings from the policy would be to the benefit of all Nigerians.

The president, who stated this yesterday when he received in audience members of the Class of 1999 Governors, which he is a member of, at the State House, Abuja, assured Nigerians that the framework for palliatives to remedy the effects of fuel subsidy removal was being worked out.

He canvassed for more patience from Nigerians, as government speeds up the process and ensure a full-proof social security structure that will not be compromised, especially in cash-transfer.

His words: “I understand that our people are suffering yet there can be no childbirth without pain. The joy of childbirth is the relief that comes after the pain. Nigeria is reborn already with fuel subsidy removal. It is a rebirth of the country for the largest number over a few smugglers. Please tell the people to be a little patient.

“The palliative is coming. I don’t want cash-transfer to fall into wrong hands. I know it pinches and it is difficult. In the end, we will rejoice in the prosperity of our country.

“We served as governors and sat in this Council Chamber. All I wanted was democracy and the salvation of the country. I never thought I was going to be here as President, but God Almighty has brought me.”

Tinubu assured the governors and Nigerians that he would work towards, “unity, equity, stability, and prosperity of the country.” 

“My commitment to that democratic value is unwavering. I am overwhelmed and honored by the numbers of you here.

 “I have an open door policy. You are my advisers. We went into the pond and wrestled with a pig. We got dirty, and cleaned up. That is why I am here today”.

The president noted that the country would not make meaningful progress without fixing electricity, assuring that his administration will harness gas resources, and explore every opportunity to ensure stable power generation and supply.

Commenting on security, Tinubu,who had earlier met with Governor Babagana Zulum of Borno State to review situation in the north east, appealed to Nigerians, especially Plateau State, to sheathe their swords and use dialogue in resolving conflicts, adding that issues of borders were man-made, not created by God.

“We will do everything possible to stabilise the country,” he added.

Speaking earlier, the former governors in a speech by its Chairman and ex-governor of Edo State, Chief Lucky Igbinedion, urged the president to pursue his vision for a greater Nigeria with vigour, steadfastness, and resilience, trusting their support for development policies, and promising to provide the necessary social structure for actualization.

“We are here with you. We are your foot soldiers, and you can tap into our experience. You are a person who believes in Nigeria. With your good leadership, Nigeria will take its place,” Igbinedion said.

Addressing newsmen after the meeting, Igbinedion said “we came to congratulate Mr. President and also to thank him for making one of us the Secretary to Government. We came to assure him that he has our full support and prayers for the bold steps he has started to take, for his initiatives and also let him know that this is beyond party politics, we’re now talking about the Project Nigeria, therefore all hands must be on deck to give Mr President the needed support and encouragement to foster a better a better nation.

“We also seized the opportunity to congratulate him as the new Chairman of the ECOWAS and assure him that we’re with him and anytime he wants to dig into the wealth of experience of this very prominent and well-founded members of Class of ’99, he should be rest assured that we’ll continue to give him the necessary support.

“On his part Mr President assured us that it is his dream to see a better Nigeria and he also wants us to let you know that the decisions that he has taken so far might be painful, but it’s just like a child birth; in order to celebrate a child, you must go through labour.

“Therefore, Nigerians should wait patiently and believe in him, that he’s going to come up with palliatives that will put smile on the faces of every one of us in Nigeria

“So we believe him and we want to encourage you also to give him the necessary support through the media and give correct information to the general populace so that we’ll have a greater nation,” he said.

Igbinedion further disclosed that the group had discussions on other national issues, ranging from security to unemployment and infrastructure needs.

“We talked about security, we talked about unemployment and we talked about electricity because without electricity, we really cannot develop. So for us to develop, then there must be constant, uninterrupted power supply.

“The issue of subsidy is gone and it’s gone forever. People should start finding their level and I’m sure we time things will come to normal and also the unification of the exchange rate into one now, as was also mentioned.

“So these are just the basic issues that we raised there and Mr President, on his own, thanked us for coming en mass. You can see in 1999 we were 36, but today we’re now 26. We want to assure you that even though some of us have gone to the great beyond, but the majority of us are still very much alive and it is our prayer that we’ll continue to be of service to our nation, without any prejudices”, he said.

He affirmed that they were 19 at the meeting, including President Tinubu, who was former Governor of Lagos State and Secretary to the Government of the Federation (SGF), George Akume, former Governor of Benue State, while ten of their mates had passed on.

Other governors at the meeting with President Tinubu were Niyi Adebayo, Ekiti State, Sen. Orji Uzo Kalu, Abia State, Sen. Sam Egwu, Ebonyi State, Adamu Muazu, Bauchi State, Donald Duke, Cross River State, James Ibori, Delta State, Obong Victor Attah, Akwa Ibom State, Chimaroke Nnamani, Enugu State, Saminu Turaki, Jigawa State, Sen. Aleiro Adamu, Olusegun Osoba, Ogun State, Adebisi Akande, Osun State, Sen. Joshua  Dariye, Plateau State, Attahiru Bafarawa, Sokoto State, Ahmad Sani Yarima, Zamfara State and Rev. Jolly Nyame, Taraba State.

Meanwhile, a former Commissioner for Finance in Imo State and President of the Association of Capital Market Academics, Prof. Uche Uwaleke has backed the request by Tinubu for the National Assembly to approve N500 billion palliatives to cushion the impact of the recent removal of fuel subsidy.

He noted that although the nature of the palliatives was not indicated, the government should as much as possible, look into the direction of non-cash options in the utilisation of such funds..

Uwaleke’s position was conveyed in a statement made available to THISDAY, yesterday.

He said: “The request by the President to the National Assembly to utilize N500 billion for palliatives to cushion the impact of the fuel subsidy removal is in order and I urge the National Assembly to give it favourable consideration as speedily as possible.

“Although the nature of the palliatives was not indicated, as much as possible, the government should look into the direction of non-cash palliatives in the utilisation of such funds.

“Reports say Nigeria has secured $800 million from the World Bank as a soft loan to cushion the impact of subsidy removal (expected to be distributed as cash to about 10 million households).

“If we add this N500 billion to the N600 billion (assuming I & E average rate of N750 applied to the World Bank’s facility), that should give N1.1 trillion.”