OTHER ARGUMENTS FOR FUEL SUBSIDY REMOVAL

    Maintenance / construction of Nigerian road. Nigeria being a large country, removal of this fuel subsidy will help to accelerate the construction and maintenance of Nigerian roads since the monies that had been allied in the construction and maintenance of  Nigerian road  so far has not been enough  due to  the number of roads  that needs government attention in the north, south and eastern parts of this country.
It will create job opportunities: The Minister of Works Arch Michael Onolememen during his  plea to Nigerians on the need to embrace  government    policy on subsidy removal said that the
subsidy removal will create 3000 jobs  in his ministry. This subsidy removal will also engage so many youths in other sectors of the economy. The youth employment intervention will target large numbers of  unemployed youths from the poorest population in each state of the federation to FCT.  In addition, the level of remuneration will be  such that will ensure the self selection of  only the poor.
A robust programme structure will be  developed to  ensure adequate  over sight and accountability. During a presidential  broadcast on subsidy removal, Mr.  President said that he  will constitute a board known as “Subsidy Reinvestment Brand”,  consulting firms with international reputation will be appointed  to provide technical assistance to the board in financial and project management.  Relevant MDAs will set up project implementation while an independent body  will report directly to the board.
Allows for Nigerian to get fuel from alternative fuel dealers  (competition). Subsidy has discouraged competition and stiffed private investment in the downstream sector.  Investors have shied away from investment in the development of refineries, petrochemicals, fertilizer plants etc. the subsidy removal of the downstream sector of the petroleum industry will lead to rapid private sector investment in refineries and petrochemicals, which will generate millions of jobs and  lead to increased prosperity for our people.
Subsidy has also created huge price disparity, which has encouraged smuggling of petroleum products across the boarder to neighboring countries, where prices are much higher. Nigeria therefore ends up subsidizing consumption of petroleum products   in neighboring countries. 
There will be an improved fiscal space: The withdrawal of oil subsidy will also offer an opportunity to accelerate  investments in critical infrastructure  that  will directly spur economic growth,  job creation and will be consistent with the present administrations transformation agenda to  achieve  the preset  administrations transformation agenda  to achieve the vision 20:20:20 which Nigerians are craving for.
Water and Agricultural Development: Subsidy removal will harness  Nigeria’s abundant water resources for national development through  sustainable food production and water  conservation.  This component according to the Minister of Agriculture Dr Adewumi Adesina  will actualized the current policy thrust towards self reliance  for rice   and other food production and enable the agricultural  value chain transformation to be achieved. He equally stated in a chat will political platform that the revitalization of the irrigation projects will increase local production of  rice by over  400,000 tons per year, thereby  reducing the  importation of food in Nigerian . This will further ensure better food security for the country and improve  human  nutrition and health and will further enhance  job creation by all year round employment generation.
Need to address urban/ rural water supply projects:  the proceed from subsidy removal if save and part of it  reinvested in water supply projects will increase the  level of portable water supply available to about  10 million people.  It  will also increase the national access to water supply form  current levels of  58% to 75%  and will contribute  to a  reduction in the infant mortality rate due to improvement  in  sanitation and reduction in water borne diseases. This is as submitted by Hon Minister of Water Resource, Mrs.  Sarah  Ochekpe at Federal Executive Council meeting.
Enhancement of  power supply:  in a briefing federal ministry of power made by Prof Barth Nnaji on the need   for workers to embrace government policies, he stated and I quote “the  component of subsidy removal will  contribute  towards the power  sector reforms by improving the generation capacity  through hydro and power  mants” unquote. The  programme will  provide counterpart  funding for  the  contraction of   the large mammilla hydropower project  that will generate an additional  2,6000 megawatts of electric power. The  programme will also provide funding to complete a total  17  small and medium hydroelectric power project with  a cumulative capacity of  140.273 meg watts. This will provide  counterpart  funding for PPPs  with the private sectors for  development of coal power projects in  Enugu, Benue, Kogi, with  a potential  to generate  1000  megawatts of power.
Facilitation of ICT:  In one of the workshops jointly organized by ministry of youth development and ministry of communication technology to facilitate the  build out critical aspect of ICT infrastructure in  Nigeria,  the hon. Minister  of Communication  Technology  Mrs.  Omobolaji Johnson  stated that the proceeds from oil    subsidy will be beneficial to youths in the following way:
a.       The fund will be used to boost broadband connectivity at the transmission layer of the national infrastructure using failure, which unlike microwave delivers higher broadband sped at the access network, lead to more affordable and better quality of communication services.
b.      Will extend ICT connectivity to all tertiary institutions   in Nigeria through establishment of e- teaching and  e- learning platform
c.       The  initiative can generate  70,000 new  jobs spread  across the  six geopolitical zones, over 60%  will  be concentrated  in the north that has higher connectivity  advantage.
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