News
President Jonathan Begs Nigerians ahead of
strike
President Goodluck Jonathan pleaded with Nigerians on Saturday
to support the removal of fuel subsidies and pledged to cut
government salaries, in an effort to prevent a nationwide strike
planned for Monday.
Nigeria's fuel regulator announced on January 1 the end of the
subsidy as part of efforts to cut government spending and weed
out corruption in the downstream oil industry, which it hopes
will encourage more foreign investment in local refining.
Petrol prices have more than doubled to around 150 naira per
litre and protests have erupted across the nation.
Trade unions have said they will begin an indefinite general
strike from Monday, including workers in Africa's largest energy
sector. Industry sources do not expect strikes to significantly
affect crude exports.
"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," Jonathan said in a
statement, his first official comment on subsidies since the
policy was announced.
"The deregulation of the petroleum sector is a necessary step
that we had to take. I want to assure every Nigerian that
whatever pain you may feel at the moment will be temporary."
Nigeria produces more than 2 million barrels per day of crude
oil but almost all of this is shipped to the United States,
Europe and Asia. Nigeria has to import its refined fuel, like
petrol and diesel, because decades of mismanagement and
corruption mean its refineries are in disrepair.
Economists say the subsidy encouraged corruption and waste and
handed over billions of dollars of government cash to a cartel
of wealthy fuel importers. The government estimates it will save
1 trillion naira this year by eliminating it.
CORRUPTION
Most people in Nigeria live on less than $2 a day and view cheap
fuel as the only benefit they get from living in an oil-rich
state. Critics say wealthy politicians should have found savings
within government and tackled oil industry corruption before
imposing costs on the public.
Jonathan said he understood the problems of corruption and the
high cost of government, which were being addressed.
"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."
"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."
He said this year the basic salaries of all politicians in the
executive arm of government would be reduced by 25 percent. This
does not include members of parliament, whose salaries make up a
large portion of government spending.
Jonathan said all overseas travel by politicians would be
reduced to the bare minimum and the size of delegations on
foreign trips would be cut. He also said overlapping committees
and departments would be looked at to reduce costs.
Jonathan's critics say he is guilty of wasting money on
committees and dozens of special advisers. He is also under fire
for failing to rein in almost daily attacks by an Islamist sect
in the northeast of Nigeria.
Many Christians have begun to flee northern Nigeria after dozens
were killed in a series of religious attacks in recent days.
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