A week ago, I had cause to address Nigerians on the
security challenges we are facing in parts of the country, which
necessitated the declaration of a state of emergency in 15 Local
Government Areas in four states of the Federation. That course of action
attracted widespread support and a demonstration of understanding. With
that declaration, government had again signaled its intention to combat
terrorism with renewed vigour and to assure every Nigerian of safety.
The support that we have received in the fight against terrorism from
concerned Nigerians at home and abroad has been remarkable. We believe
that it is with such continued support that progress can be made on
national issues. Let me express my heartfelt appreciation to everyone
who has expressed a commitment to support us as we strive to improve on
the country’s security situation, and build a stronger foundation for
the future. The recent mindless acts of violence in Gombe, Potiskum,
Jimeta-Yola and Mubi are unfortunate. I urge all Nigerians to eschew
bitterness and acrimony and live together in harmony and peace. Wherever
there is any threat to public peace, our security agencies will enforce
the law, without fear or favour.
This evening, I address
you, again, with much concern over an issue that borders on the national
economy, the oil industry and national progress. As part of our
efforts to transform the economy and guarantee prosperity for all
Nigerians, Government, a few days ago, announced further deregulation of
the downstream petroleum sector. The immediate effect of this has been
the removal of the subsidy on petrol.
Since the
announcement, there have been mixed reactions to the policy. Let me
seize this opportunity to assure all Nigerians that I feel the pain that
you all feel. I personally feel pained to see the sharp increase in
transport fares and the prices of goods and services. I share the
anguish of all persons who had travelled out of their stations, who had
to pay more on the return leg of their journeys.
If I were
not here to lead the process of national renewal, if I were in your
shoes at this moment, I probably would have reacted in the same manner
as some of our compatriots, or hold the same critical views about
government. But I need to use this opportunity as your President to
address Nigerians on the realities on the ground, and why we chose to
act as we did. I know that these are not easy times. But tough choices
have to be made to safeguard the economy and our collective survival as a
nation.
My fellow Nigerians, the truth is that we are all
faced with two basic choices with regard to the management of the
downstream petroleum sector: either we deregulate and survive
economically, or we continue with a subsidy regime that will continue to
undermine our economy and potential for growth, and face serious
consequences.
As you all know, the subject of deregulation
is not new, we have been grappling with it for more than two decades.
Previous administrations tinkered with the pump price of petroleum
products, and were unable to effect complete deregulation of the
downstream sector. This approach has not worked. If it did, we would
not be here talking about deregulation today. I understand fully well
that deregulation is not a magic formula that will address every
economic challenge, but it provides a good entry point for transforming
the economy, and for ensuring transparency and competitiveness in the
oil industry, which is the mainstay of our economy.
As a
President, elected and supported by ordinary Nigerians, and the vast
majority of our people, I have a duty to bring up policies and
programmes that will grow the economy and bring about greater benefits
for the people. Let me assure you that as your President, I have no
intention to inflict pain on Nigerians.
The deregulation
of the petroleum sector is a necessary step that we had to take. Should
we continue to do things the same way, and face more serious economic
challenges? Or deregulate, endure the initial discomfort and reap better
benefits later? I want to assure every Nigerian that whatever pain you
may feel at the moment, will be temporary.
The interest of
the ordinary people of this country will always remain topmost in my
priorities as a leader. I remain passionately committed to achieving
significant and enduring improvements in our economy that will lead to
sustained improvement in the lives of our people.
I am
determined to leave behind a better Nigeria, which we all can be proud
of. To do so, I must make sure that we have the resources and the means
to grow our economy to be resilient, and to sustain improved livelihood
for our people. We must act in the public interest, no matter how tough,
for the pains of today cannot be compared to the benefits of tomorrow.
On assumption of office as President, I swore to an oath to always act
in the best interest of the people. I remain faithful to that
undertaking.
To save Nigeria, we must all be prepared to
make sacrifices. On the part of Government, we are taking several
measures aimed at cutting the size and cost of governance, including
on-going and continuous effort to reduce the size of our recurrent
expenditure and increase capital spending. In this regard, I have
directed that overseas travels by all political office holders,
including the President, should be reduced to the barest minimum. The
size of delegations on foreign trips will also be drastically reduced;
only trips that are absolutely necessary will be approved.
For the year 2012, the basic salaries of all political office holders
in the Executive arm of government will be reduced by 25%. Government is
also currently reviewing the number of committees, commissions and
parastatals with overlapping responsibilities. The Report on this will
be submitted shortly and the recommendations will be promptly
implemented. In the meantime, all Ministries, Departments and Agencies
must reduce their overhead expenses.
We are all greatly
concerned about the issue of corruption. The deregulation policy is the
strongest measure to tackle this challenge in the downstream sector. In
addition, government is taking other steps to further sanitize the oil
industry.
To ensure that the funds from petroleum subsidy
removal are spent prudently on projects that will build a greater
Nigeria, I have established a committee to oversee the implementation of
the Subsidy Reinvestment and Empowerment Programme. I sincerely believe
that the reinvestment of the petroleum subsidy funds, to ensure
improvement in national infrastructure, power supply, transportation,
irrigation and agriculture, education, healthcare, and other social
services, is in the best interest of our people.
Fellow
Nigerians, I know that the removal of the petroleum subsidy imposes an
initial burden on our people, especially the rising cost of
transportation. Government will be vigilant and act decisively to curb
the excesses of those that want to exploit the current situation for
selfish gains. I plead for the understanding of all Nigerians. I
appeal to our youth not to allow mischief-makers to exploit present
circumstances to mislead or incite them to disturb public peace.
To address the immediate challenges that have been identified, I
have directed all Ministries, Departments and Agencies of government to
embark immediately on all projects, which have been designed to cushion
the impact of the subsidy removal in the short, medium and long-term, as
outlined in the Subsidy Reinvestment and Empowerment Programme
Document.
Tomorrow, 8th January, I will formally launch a
robust mass transit intervention programme to bring down the cost of
transportation across the country. The programme will be implemented in
partnership with state and local governments, labour unions, transport
owners, and banking institutions, and supported with the provision of
funding at zero interest rate as well as import duty waiver on all
needed parts for locally-made mass transit vehicles, which will create
additional jobs in the economy.
We will keep these
incentives in place for as long as it takes. I want to assure you that
Government will not rest until we bring down the cost of transportation
for our people. Let me thank the transporters’ associations that have
agreed to reduce transport fares. I have directed the Minister of Labour
and Productivity to work with these associations to come up with a
sustainable plan to guarantee this within the shortest possible time.
In addition, I have ordered the mobilization of contractors for the
full rehabilitation of the Port Harcourt –Maiduguri Railway Line and the
completion of the Lagos-Kano Railway Line. I have also directed the
immediate commencement of a Public Works programme that will engage the
services of about 10, 000 youths in every state of the Federation and
the Federal Capital Territory. This will create an additional 370, 000
jobs.
Government has taken these decisions in the best
interest of our economy, so that we not only have benefits today, but to
ensure that we bequeath even greater benefits to our children and
grandchildren.
Let me assure Nigerians that every
possible effort will be made to ensure that we march forward, with a
collective resolve to build a Nigeria that can generate greater economic
growth, create and sustain new jobs, and secure the future of our
children.
This Administration will aggressively
implement its programme to reposition and strengthen our economy, while
paying adequate attention to the immediate needs of our citizens.
I assure you all that we will work towards achieving full domestic
refining of petroleum products with the attendant benefits.
As I ask for the full understanding of all Nigerians, I also promise that I will keep my word.
Thank you. May God bless you; and may God bless the Federal Republic of Nigeria.
Goodluck Ebele Jonathan, GCFR
President
Federal Republic of Nigeria
January 7, 2012
Goodluck Ebele Jonathan, GCFR
President
Federal Republic of Nigeria
January 7, 2012
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