President Goodluck Jonathan: Fuel Subsidy Reinvestment Programme no longer possible.Why?

Posted by admin on February 21, 2012 in nigerian news | 2 Comments Nigerians have slammed President Jonathan over his comment that the fuel subsidy palliatives he promised are no longer possible. The President had yesterday said the Subsidy Reinvestment and Empowerment Programme, SURE, he promised was no longer realistic because there was no 100 percent removal of the fuel subsidy which he canvassed for.Speaking with.Prof. Itse Sagay said, Nigerians have been vindicated because no government has ever successfully used the accrual of subsidy removal to benefit the people, apart from the Abacha government. Sagay said he was not surprised about Jonathans comment saying, We are back to square one.Also commenting, former governor of Kaduna State, Alhaji Abdulkadir Balarabe Musa, said it is not surprising to hear the comment the President made as it was expected because, we suspected the Federal Government was broke and that is why it tried to get the money from the people to balance its budget. Musa called on the President to resign for not being able to fulfill the promise he made to the people to provide palliative measures as a result of the biting effect of the fuel subsidy removal. Also speaking, spokesman of the Save Nigeria Group, SNG, Mr. Yinka Odumakin lamented that the President had always claimed to keep his promise but he never believed the President for once. According to Odumakin, the Jonathan government had just shown that it could not be trusted. Speaking on the issue, the Convener of Coalition Against Corrupt leaders, CACOL, Comrade Debo Adeniran said, Jonathans statement was uncalled for and that it shows his government is not a serious one and that the President speaks with both sides of his mouth. We cannot trust them again. They are saddistic. We should know that 70 per cent of Nigerians live below the poverty line, Adeniran said. National President, Campaign for Democracy, CD, Dr. Joe Okei-Odumakin said she was not surprised by Jonathans statement as the President had not always been consistent.The citizens must brace up for harder days and they should realise that they are dealing with a wicked government.The President is only implementing the International Monetary Fund, IMF policy. We should not believe this government again. We should reject any loan he wants to take. The Publicity Secretary, Action Congress of Nigeria, ACN, Lagos State, Mr. Joe Igbokwe said we cannot take him seriously. What they want is the money to share. This President cannot be serious. Does he know what governance is all about? The entire business of governance is all about the welfare of the people and nothing more. Even without subsidy removal, the President under obligation to provide these palliatives. Bostwana, a small but unique country in Africa discovered Diamond recently. The wise leaders of that country went to refashion their constitution to make it mandatory for every citizen of that country to benefit from the resources that will accrue from

it. This is leadership simplicatal. This PDP government should for once disappoint Nigerians by getting serius, Igbokwe declared. Aso Rock's spokesman say Committee implementing the SURE programme is yet to disbanded, while a new document containing the reviewed palliatives would soon be out The Presidency on Monday said contrary to insinuations in some quartres that the federal government had abandoned its Subsidy Reinvestment and Empowerment (SURE) programme, a new SURE document containing the reviewed palliatives would soon be made public. Special Adviser to the President on Media and Publicity, Reuben Abati, said President Goodluck Jonathans comments on the issue reviewing the programme during the 58th National Executive Committee of the Peoples Democratic Party (PDP) on February 20, 2012, were deliberately misrepresented. It has been alleged that the Federal Government has abandoned or is attempting to truncate the Subsidy Reinvestment and Empowerment (SURE) programme, Mr. Abati noted. At no time did President Goodluck Ebele Jonathan say that the Federal Government had abandoned the SURE programme. What he said in his opening remarks at the Peoples Democratic Party (PDP) National Executive Committee (NEC) meeting last week, was that the full implementation of governments palliatives to cushion the negative effects of the fuel subsidy removal as contained in the original SURE programme, was no longer feasible and will be reviewed, in view of the partial rather than full removal of the subsidy on petrol. According to Mr. Abati, the SURE programme was predicated on a policy of full deregulation as stated in the SURE document released to the general public, pointing out that following events that trailed the commencement of full deregulation, government, after a series of negotiations with organized labour, reduced the pump price of petrol. It therefore follows that the funds that were expected to accrue from full deregulation will no longer accrue, since the policy of full deregulation was stepped down for the time being. This new reality informed the Presidents directive that the original SURE programme documents already circulated to the public, be withdrawn in order not to give the public false expectations. The SURE programme HAS NOT been cancelled. What President Goodluck Jonathan said was: We developed this with the expectation that we were going to completely deregulate the downstream sector of the oil industry, (after) the 100 per cent removal of subsidy. ... We couldnt achieve that, though there was an increase in the price. I dont want this to be distributed; it will give a wrong impression. The SURE programme was hurriedly put together by the government in the wake of the controversial removal of subsidy of petrol to provide palliatives to cushion the negative impact of the policy.

Following the statement by the President, acting General Secretary, Nigeria Labour Congress (NLC), Owei Lakemfa, had said that decision to step down the programme for the time being meant that the government was ready to return the fuel pump price to N65, accusing it of a plot to deceive Nigerians against expecting benefits from the decision to hike the pump price of petrol. From the beginning, organised labour was very wary about Federal Governments sincerity with this SURE programme. But, government insisted Nigerians should trust it, as the benefits would begin to manifest in six months. By putting the programme on hold, government is asking Nigeria to forget about it, Mr. Lakemfa said. But Mr. Abati insists the programme is still on as the Christopher Kolade-Committee mandated to handle its implementation is yet to disbanded, while a new SURE document containing the reviewed palliatives would soon be made public. Goodluck Jonathan A concensus emerged after the civil war that we the people of Nigeria will live together in peace under God our creator. When I took the oath of office on the 29th of May 2011, the constitution of our republic reminded me that the primary duty of government is to secure life and protect property of all citizens. Although the security challenges we face today is of a type and make never before experienced in our land, I have continued to work with all men and women of good will to stave off this threat to our union. I want to thank all Nigerians who through prayers, facebook messages and letters have encouraged us to remain undaunted in bringing to a close this challenge. Every option known to human civilisation especially the unbiased enforcement of law and order as well as dialogue will be deployed to finding a lasting solution to this present threat. Let me also use this post to thank the men and women who serve our country in various security formations at this trying time. Your sacrifices and duty to Nigeria is greatly appreciated. It is true that security operation strategies are not things you discuss in the open, I want to inform you my friends on facebook that these gallant men and women have prevented and forestalled several situations that would otherwise have led to more national misery and pain. As the security forces close the gap and build up capacity to meet these national and international crimes against our common humanity, I want to request all patriots to give them every support needed. May God bless Nigeria. GEJ Goodluck Jonathan Today, I inaugurated the board of the Subsidy Reinvestment and Empowerment Programme (SURE-P) under the leadership of Dr. Christopher Kolade. I also had the great privilege of kicking off the Public Works Women and Youth Empowerment Programme which is an intervention programme designed to employ 370,000 youths in the year 2012 with 30% of those jobs being reserved for women. This programme will also place young graduates as interns in firms and companies with a view to sharpening their skills preparatory to engaging in entrepreneurship and those firms that choose to retain these graduates will be given incentives by the Federal Government. This is only one step in government's plan to provide the enabling environment for all willing Nigerians to get to work and compliments the Youth Enterprise With Innovation in Nigeria (YouWin) initiative which I launched on the 11th of October 2011.

I want to close this day by remembering a great fallen patriot, a man who paid the Supreme price for this nation and a man whose zeal for Nigeria's unity knew no bounds. Today, I remember General Murtala Ramat Mohammed who fell to the assassins bullets on this day 36 years ago. May his soul continue to rest in peace. GEJ Goodluck Jonathan Last May I signed the Freedom of Information Bill into an Act. This piece of legislation has been long time coming. On the occassion of the signing I stated my "commitment to run a transparent, open, sincere and accountable government" within the rule of law and the protection of our common destiny. In taking the commitment of transparency to heart I gave my word to the Nigerian people that this administration would put in place policies, institutions and structures so as to ensure transparency in every sphere of our governance trajectory. I believe that the mandate Nigerians gave to me following the election that was acclaimed by both local and international observers as well as a majority of the Nigerian people as free, fair and transparent is to do all within my constitutional powers for the good of our country. My dear friends on facebook, this administration has commenced a series of reforms in many areas including agriculture, power, energy, security, education among others and I want to specially request your support in prayers so as to ensure the success of these initiatives. Regardless of the orchestrated distraction, I will continue to place national interest above partisan politics for it is not about Goodluck Jonathan as an individual it is about Nigeria in the collective. It is not only about the present it is also very clearly, about our future too. I want to call on all those who may continue to view issues only from the prisms of partisan politics to take a break. Election campaigns are over, it is the season to deliver on good governance. In all the areas we have slated for reforms, we have, regardless of party, ideology or other interest, assembled and will continue to do so, very distinguished men and women of outstanding pedigree to carry out assignments in our nations interest. We must reward and call to service excellence and patriotism at all times. GEJ Like Comment February 9 at 11:53pm President Goodluck Jonathan: so far, his performance has lived up to his name Across the world, Nigerias reputation is bad. Its even worse in Nigeria itself. The nations popular press blazon its bad news with shocking directness. Nigerians love to tell you stories about how terrible things are. Most stories end in laughter, but that doesnt mean they dont wish things were better. After the inauguration of President Goodluck Jonathan in May, there was hope that Nigeria might just be starting to turn itself around. But then came ominous news. The oil minister, Diezani AllisonMadueke, who also happens to be one of the presidents closest friends, had quietly given away large oil concessions to a company less than a year old, which has never been in the oil business.

Nigeria is the big one. Apart from oil, it has every mineral imaginable, unused fertile land, plenty of water, and over 150m energetic and creative people. But it doesnt work. Over the past 55 years, oil wealth has ruined the country, economically, morally, politically. While its parliamentarians earn $1m a year in salaries and as much again in expenses, 70 per cent of its people live on less than $1 a day. The national power company provides about 3,500 megawatts per day for all Nigerians. Thats less than what Ireland uses for its 4.5m people. Nigeria is one of the top producers of crude oil in the world, but imports almost all of its refined oil. Why? Because the elites who import generators and diesel are more powerful than those who want Nigeria to refine its own oil and use it to generate electricity. This is the way Nigeria has been for decades. Any development happens in spite of the rulers, not because of them. So far, President Goodlucks performance has lived up to his name. The former environmental protection officer with a zoology degree was remarkable for his insignificance when he was chosen as vice president by the former president, Olusegun Obasanjo, who ruled from 1999 to 2007. Jonathan comes from the oil-rich Niger Delta in the Christian south and Obasanjo saw him as a safe pair of hands, hoping he could representand possibly quietenthe rebellion in the Niger Delta and keep the petrodollars flowing. When Obasanjos successor, a quiet northern Muslim aristocrat and academic, Umaru YarAdua, died in office in 2010, no one expected Vice President Jonathan to last long. But he did not put a foot wrong when he stepped up to complete Yar Aduas term, ducking and weaving around the northern lords who control the ruling party, the Peoples Democratic Party (PDP). When YarAdua died, the northern Muslims in the PDP felt that another one of their own was entitled to the top job. Yet Jonathan sat tight and saw off two other heavyweight northern challengers to lead the party into the April election. The north claimed that he was breaking a fundamental PDP agreement that the presidency should rotate between north and south. After the April election, violence broke out in northern cities. Northerners fear of losing power and influence is real. Having ruled Nigeria for most of its first 40 years, they will not have another sniff of the presidency until 2015. The southeast has the oil, some 40bn barrels still in the ground. The southwest has Lagos, one of the fastest expanding cities on the planet. Unlike the rest of Nigeria it does not depend on oil money, finances itself and is increasingly well-run. If it were an independent countryand it periodically threatens secessionit would be the fourth largest economy in Africa. The north, however, is mostly dry savannah with little more than agriculture: cattle country. Sokoto, one of the norths most important cities, has only one factory. Levels of poverty are high, standards of education and health provision appallingly low. Thats why northerners have clung on to political power: it brings access to oil money. If the southwest and the southeast seceded, the rest of Nigeria would be impoverished. Where does the president go from here? His much-delayed cabinet announcement will indicate just how much political debt he accumulated in winning the presidency. If he plays by Nigerian rules, repayment will also be in the form of lucrative positions in government for his supporters. Many of his most powerful ministers and advisers appointed so far have been from his region: people he knows and trusts like Allison-Madueke, the mighty oil minister who had the power to decide who gets to

suck at the wells. The secretary of the federal government is Anyim Pius Anyim. Like Jonathan he is from the southeast, as is General Owoye Andrew Azazi, the national security adviser. This tribalism is to be expected in a country as divided as Nigeria, but if the president delivers a better life for all Nigerians he will get away with it. That seems to be Jonathans strategy: populist, reaching out over the heads of the elites to the people. In his inauguration speech on 29th May he said: I will continue to fight for your future because I am one of you. He promised improved medical care, access to education, jobs and an efficient, affordable transport system. And electricity for all. If he only delivers on the last of these, he may still go down as Nigerias best president so far. But he will not be able to do it unless his government fights corruption, instead of spreading it. The secret sale of the oil concessions is not a good start. Huhuonline.com understands that President Goodluck Jonathan Subsidy Reinvestment Programme, SURE-P, may have hit a snag even before it commenced, as the Nigerian Labour Congress,(NLC) has turned down plans by the Federal government to allocate additional Six hundred mass transit buses to organized labour. They aver that the decision was not the outcome of actual discussion with the congress. This clarification was made by Comrade Issa Aremu,Vice President of the union and Chairman Labour Transport Company, LTC. In his words, the understanding reached was that the Federal Government would make funds available to reputable transport companies including the LTC under the SURE-P to procure vehicles and not necessarily to procure same and dump with such transporters. Under its SURE-programme the Federal Government promised to make fund available for reputable Transport operators (of which NLCs is one) and not necessarily to procure and dump (as it were!) buses to operators, Aremu said. He spoke in response to media reports ascribed to both Minister of Information and the Minister of State, Trade and Investment, Mr Labaran Maku and Dr Sam Ortom respectively that the Federal Government had placed a fresh order for the purchase of 1,242 mass transit buses under the SURE-P, over which both the NLC and the Trade Union Congress, TUC, would be allocated 450 and 150 buses respectively. According to the two Ministers, the rest of the buses procured would be disbursed to competent transporters. However, Comrade Aremu in a statement entitled Bus Allocations or Mass Transport Service Delivery, said, Labour and indeed all Nigerians recognise the need for mass transit scheme as one critical success factors in good governance beyond the current subsidy issue. Even much more important is the urgent need to reinvent the railway system. To this extent, labour supports every genuine effort at ensuring a sustainable national transport service delivery system." Labour does not subscribe to feverish top-down bus allocation that is not a product of genuine dialogue and part of comprehensive programme of transport service delivery."

The Federal Government under its SURE-P promised to make fund available for reputable transporters and not necessarily to procure and dump, buses to operators." RIGHT APPROACH: The correct approach should be that all genuine transport operators including LTC should exercise their right to source and procure their own buses while the Federal Government makes fund available at zero per cent interest as promised, within the context of an overall national mass transit transport policy." "The LTC was one beneficiary of such Federal Governments bus allocation scheme in the past with disastrous consequences and would not want to thread this path to service failure again." President Goodluck Jonathans transformation agenda must get things done differently. Labour would prefer to make its bus requirements and specifications available to the Federal Government after due consultations including consultation." The provision of buses is just one of the many components of a functioning and efficient transportation mix. Bus provision is not the same as transport service." What Nigerians want is a functional, affordable, comfortable, reliable and accessible mass transit system which is usually driven by factors including transport plan/studies (bus routes, bus type/specifications, bus number, transport fare, operation standards, legal, institutional and regulatory framework, infrastructures (bus depot, terminals, bus shelters), operation and management framework, traffic control system, among others. This nation has travelled the unhelpful path of bus provision and allocation before with disastrous consequences. The serial colossal mass failures of the Federal Mass Transit project, Abuja Urban Mass Transit project and many other urban based mass transit projects in different states of the country and are too familiar to forget so soon." These failed schemes only dwelt on the provision of buses and the SURE-P is also threading along the same path, hence the need for caution. We need a clear mass transit roadmap that makes us believe this is not another failed bus project waiting to happen." In the overall interest of Nigerians, Labour and its partners are prepared to work with the Federal Government towards fashioning a robust transport solution for Nigeria that would result in functional, affordable, comfortable, reliable and accessible mass transit system as obtained in other countries to ensure that the sufferings of the masses are reduced considerably. As has become the pattern by some political pundits whose definition of opposition is to undermine any good policy initiative of the Federal Government, there has been a deliberate misrepresentation of the comments by President Goodluck Jonathan at the 58th National Executive Committee of the Peoples Democratic Party on 20 February 2012 on the issue of reviewing the SURE programme. Hence, it has been alleged that the Federal Government (FG) has abandoned or is attempting to truncate the Subsidy Reinvestment and Empowerment (SURE) programme.

At no time did President Goodluck Ebele Jonathan say that the Federal Government had abandoned the SURE programme. What he said in his opening remarks at the Peoples Democratic Party (PDP) National Executive Committee (NEC) meeting last week, was that the full implementation of governments palliatives to cushion the negative effects of the fuel subsidy removal as contained in the original SURE programme, was no longer feasible and will be reviewed in view of the partial rather than full removal of the subsidy on petrol. The SURE Programme was predicated on a policy of FULL deregulation as stated in the SURE document released to the general public (Please see http://tinyurl.com/7qczjeo). However, due to widely publicised events after the commencement of full deregulation, the government, after a series of negotiations with organized labour, reduced the pump price of petrol. It therefore follows that the funds that were expected to accrue from full deregulation will no longer accrue since the policy of full deregulation was stepped down for the time being. This new reality informed the Presidents directive that the original SURE programme documents already circulated to the public, be withdrawn in order not to give the public false expectations. The SURE programme HAS NOT been cancelled. What President Goodluck Jonathan said at the 58th National Executive Committee meeting of the Peoples Democratic Party (PDP) is as follows: We developed this with the expectation that we were going to completely deregulate the downstream sector of the oil industry, (after) the 100 per cent removal of subsidy. We couldnt achieve that though there was an increase in the price. I dont want this to be distributed; it will give a wrong impression. These comments only show that President Jonathan is being transparent with the public rather than offer them unrealistic expectations. Sincerity of purpose is a virtue and should be encouraged. For those who are still in doubt, let it be stressed that the Dr. Christopher Kolade Committee charged with implementing the SURE programme, is still at work and has not been disbanded while a new SURE document containing the reviewed palliatives will soon be released to the public. We appeal to labour unions and other opinion-moulders in the society to desist from misinforming the public about governments well-meaning programmes geared towards addressing the critical needs of the citizenry. Reuben Abati Its objectives, according to the documents at the CAC, are five and are all about promoting good neighbourliness in the society. Its first objective is to promote peaceful coexistence between neighbours, while its last is to help the needy and the less privileged to be your brothers keeper.

The closest to involvement in politics which the group stated in its application papers at the CAC is to ensure fairness in the electoral process through awareness campaign Re: Fuel subsidy palliatives not possible again Jonathan Our attention has been drawn to the above headline in various news tabloids about President Goodluck Jonathans sincere take on the feasibility of the original SURE document prepared in the hope that there would be a wholesale removal of petroleum subsidy by January 2012, which never materialized, but was consequently partial. A lot of aspersions and campaign of calumny is being noticed especially on social media about such honest assessment and reappraisal which is normal, given the new twists to the subsidy removal and deregulation plans. Here is a reproduced Punch Newspaper report word for word: PRESIDENT Goodluck Jonathan on Monday said the Subsidy Reinvestment and Empowerment programme promised by his administration was no longer realistic. The President said SURE was hurriedly conceptualised in January on the heels of the nationwide protest against the removal of the fuel subsidy. Jonathan added that the implementation was no longer feasible since the zero-subsidy policy planned by his administration was not being implemented. Jonathan spoke at the 58th National Executive Committee meeting of the Peoples Democratic Party where he ordered his party men to retrieve copies of a SURE publication that had been advertised. The PDP members had distributed the publication to attendees at the meeting, but on sighting the document the President expressed surprise and ordered that it should be withdrawn. The President said, As I came in, I saw this SURE book being distributed, we are withdrawing it. This is the old one. We developed this with the expectation that we were going to completely deregulate the downstream sector of the oil industry, (after) the 100 per cent removal of subsidy. You know we could not achieve that though there was an increase in the pump price. I dont want this thing to be distributed; it will give a wrong impression. We are working on a new document based on the reality, but we dont want to promise what we will not achieve. Those who have it please withdraw it, we cannot realise the money that is stated therein, but we will still come up with a document based on what we get. Curiously, Jonathan had inaugurated a board for the implementation of the SURE programme barely a week ago, on February 13. The board is headed by a former High Commissioner to the United Kingdom, Dr. Christopher Kolade.

Critics of the government and opposition parties had earlier predicted that the government could not be trusted to implement SURE which some of the critics had described as a fraud. In the SURE document, which was distributed on Monday, government has put the total subsidy reinvestible funds at N1.134tn based on an average of $90 per barrel of crude oil. According to the document, out of the total, N478.49bn would accrue to the Federal Government, while state governments and local governments would get N411.03bn and N203.23bn respectively. The document adds that N9.86bn would go to the Federal Capital Territory while N31.37bn would be transferred to the Derivation and Ecology, Development of Natural Resources and Stabilisation Fund. Among the items the Federal Government promised to spend money on were the construction of the EastWest Road; construction of some roads and bridges in the six geo-political zones of the country; and the completion of rail routes. The government also listed some of the irrigation projects it planned to embark on, promising that the revitalisation of the irrigation projects would increase the local production of rice by over 400,000 tonnes per year. The withdrawn document further adds that government will contribute to the power sector reforms by improving generation capacity through hydro and coal power plants. The current subsidy regime in which fixed price is maintained irrespective of market realities has resulted in huge unsustainable subsidy burden, the document says. The government had on January 1, 2012 announced a total removal of subsidy on petrol but the consequent jump in the pump price of the product from N65 per litre to N141 had attracted nationwide protests and a strike action championed by organised labour and civil society groups. Following a week of paralysis in the socio-economic sector, the government on January 16 agreed to revert the price of petroleum to N97 per litre. The Federal Government, however, on February 15 proposed additional N656.3bn to the 2012 budget to cater for its subsidy on petrol. Jonathans coordinating minister, Dr. Ngozi Okonjo-Iweala, had in a statement explained that the 2012 Fiscal Framework earlier submitted to the National Assembly assumed 100 per cent subsidy removal and that only N155bn was provided for the carry-over of 2011 subsidy payments. Okonjo-Iweala explained that the estimated total figure for subsidy in 2012 was N888bn, made up of N656.30bn for 2012 and N155bn as carry-over from 2011. Shedding light on the subsidy budget for 2012, the minister stated that the amount was arrived at after extensive consultations with the Nigerian National Petroleum Corporation and the Petroleum Products Pricing Regulatory Agency. The Punch Newspapers (http://www.punchng.com/news/fuel-subsidypalliatives-not-possible-again-jonathan/).

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Now, as usual, newspapers headlines can sensationalise things if the quick-to-judge never reads the full reports. In the Presidents words: We are working on a new document based on the reality, but we dont want to promise what we will not achieve. Those who have it please withdraw it, we cannot realise the money that is stated therein, but we will still come up with a document based on what we get. THAT DOES NOT MEAN THERE WONT BE PALLIATIVES, WHICH MANY STATES HAVE ALREADY BEGUN IMPLEMENTING. IT MEANS THE TOTAL REMOVAL PREMISE THE ORIGINAL SURE DOCUMENT WAS BASED ON IS NO LONGER FEASIBLE, THUS A NEW ONE BASED ON THE PARTIAL REMOVAL WILL REPLACE THE ONE CURRENTLY IN CIRCULATION. THIS HEADLINE IS TAKEN OUT OF CONTEXT AND BLOWN OUT OF PROPORTION BY REFLEXIVE CALUMNISTS TO ENHANCE THEIR SMEAR CAMPAIGNS. We are not in that unreasonable bandwagon as good reasons must give way to better reasons. God bless Nigeria. The Citizens United for Growth Initiatives

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