News
Subsidy: Sanusi Makes U-Turn,
calls for 24-Hour Solution to Protest
Central Bank governor, Sanusi Lamido
Sanusi has advised the Federal government to dialogue with
Labour and Civil Society Groups to fashion out a 24- hour
solution to the lingering nationwide strike.
The statement by the CBN governor is seen
by many as a u-turn, as he had in an earlier interview on AIT
this week urged Labour and the CSOs to accept the subsidy
removal as something they should learn to live with.
However, Civil Society Groups and Organized
Labour has mobilized Nigerians to a country wide protest and
strike which has crippled businesses, resulting in the loss of
over N1trillion. Sanusi also disclosed that inflation rate in
Nigeria is set to hit 15 percent by mid 2012 if the fuel subsidy
removal stays.
The Apex Bank governor who was a guest on
Channels Television yesterday while allaying fears on the effect
the sharp rise in the price o goods and services asserted that
contrary to analysts fears, the Nigerian economy can withstand
inflation at 15 percent.
According to analysts at Renaissance
Capital " The impact of the petrol price hikes could go beyond
simply pushing up transport costs, it is also expected to affect
the cost of producing goods and services particularly the prices
of food, clothing and footwear.
Meanwhile, economic activities across the
country have remained grounded as the industrial action called
by labour groups enter forth day. It is estimated that the
ongoing strike by Labour is costing the economy around N100
billion or $617 million a day.
It will be recalled that the federal
government subsidies on petrol import on January this year,
doubling the price of petrol to N150 per litre and pushing up
the cost of transportation, goods and services. The Central
Bank’s target of single digit is not likely until 2013
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