As Nigerians grapple with the challenges of subsidy removal, the Centre for the Promotion of Private Enterprise (CPPE) has stressed the need for President Bola Tinubu to urgently introduce measures, in form of paliatives that would help minimise the suffering of the people and lessen the hardship triggered by the the policy.
According to the CPPE, the measures expected to be holistic and all-inclusive must be driven by a combination of direct interventions from both fiscal and monetary authorities and adopted by government at all levels.
The Chief Executive of the CPPE, Dr. Muda Yusuf, in a statement said the hike in transport fares and the corresponding inflationary effect is already posing a threat to the livelihood of many, both within and outside the public sector.
Therefore, he suggested that the mitigating measures could be classified into immediate, short term, medium and long term to send the right signals to citizens and demonstrate government’s sensitivity to the plight of the people.
He pointed out that Immediate panaceas need to be activated, not just with respect to transportation costs, but the surging cost of living generally.
Yusuf also called for the acceleration of reforms in the foreign exchange market, especially the unification of the exchange rate in line with the President’s pronouncement, noting that this would create a level playing field in the forex market and pave way for equal access to all players in the downstream sector to either import or refine petroleum products.
“The CPPE is recommending the following interventions in the interest of social justice and social stability. NNPC should sell petroleum products at a price which is 10% less than that of other private sector marketers Government must put an end to the pricing of gas in dollars for domestic use, especially for manufacturers.
“Government should take urgent steps to reduce the cost of LPG to households. Import duty, VAT and other port charges on Semi Knocked Down parts for the assembly of mass transit buses should be waived. “
Yusuf also urged government to provide soft loans for small businesses as part of the palliatives, while ensuring that microfinance banks are incorporated into the scheme to deepen inclusion, facilitate increase in output and create more jobs in the country.
In his words: “The sacrifices of the moment should not be limited to the working class and ordinary citizens. The political leadership at all levels must commit to reduction in the cost of governance.
“Number of political appointees, advisers, salaries and allowances, foreign trips, etc. should be trimmed to reflect the current mood of the nation. In addition to the its symbolic significance, this would support the fiscal consolidation agenda of the government.”
