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Friday, 13 May 2016

7 challenges Nigerians will face as petrol deregulation begins, no 6 will affect everybody



As expected, Nigeria will remain tensed in the coming days. This is because of the sudden reality that the government would not renege in its decision to liberalise the premium motor spirit, also called petrol.

With the announcement on Wednesday by Emmanuel Ibe Kachikwu, the minister of state for petroleum, these following must be expected as shown by The Cable:

1. Protests

The decision to deregulate petrol has torn Nigeria into those for and those against the removal of subsidy. On social media, those who are angry have begun mobilisation for a re-enactment of the 2012 #occupyNigeria which almost claimed the country.

Surprisingly however, most of those who partook in the 2012 edition may not likely be active this time.

2. Increased agitation by organised labour

The time has come for the Nigeria Labour Congress and the Trade Union Congress to consolidate on their agitation for an increment in the minimum wage of the country’s workers.

Currently the minimum wage is N18,000 and labour recently demanded for N56,000, an amount the government says it is still considering.

3. Commendation from IMF, WORLD BANK

The duo of the International Monetary Fund (IMF) and the World Bank may have won in the call for Nigeria to carry out full deregulation sector as well as remove subsidy.

4. Sale of refineries

Nigeria has four refineries which have gulped billions of dollars in maintenance, yet have not met expectation. It has always been sad news of low output.

As reported, Kachikwu says Nigeria is currently speaking with Total, Chevron and Agip to see how a partnership deal could be struck concerning the refineries.

5. Passage of petroleum industry bill

With the deregulation of premium motor spirit, the National Assembly could now be motivated to pass the petroleum industry bill to now give total deregulation to the sector.

6. Naira devaluation

Did you just say it is not possible? In Nigeria, anything is. After all, President Muhammadu Buhari, in 2015, argued that it was not the best to increase pump price because it would affect other sub-sectors of the economy.

He has also constantly argued that there was no serious reason to devalue the naira, but Nigeria is currently facing two-digit inflation and the citizens are not smiling.

7. Delayed economic recovery

Though Kachikwu has promised that the price of petrol would stabilise in about six months, many still believe that the economy will take time to recover, especially with a president who believes in ‘slow and steady’.

NAIJ.com had earlier reported that the announced removal of subsidy on the premium motor spirit, popularly called petrol, on Wednesday, may end up becoming a re-enactment of the January 2012 #occupyNigeria, as some agitated citizens have commenced a new campaign to have it repeated against the government of President Muhammadu Buhari.

With the removal of subsidy on the product, the government fixed N145 as the maximum amount to be charged per litre on petrol and while some Nigerians are mobilising on social media for mass protest, the Trade Union Congress (TUC) thinks the fuel price hike was a coup against organised labour.

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