Nigeria: People’s Democratic Party Governors Lament Fuel Crisis, Reject Unsubstantiated Subsidy Claims

People’s Democratic Party (PDP) governors yesterday decried the excruciating pain the fuel scarcity in the country caused a lot of Nigerians, even as the governors said they would resist any further attempt by Nigerian National Petroleum Company (NNPC) to ascribe unsubstantiated subsidy claims to other tiers of government.

The PDP governors further lamented that electricity was N14.23 per kilowatt in 2015, but has risen to N38.530, and not even available.

In a communique read by the chairman of the PDP Governors Forum, Aminu Tambuwal lamented that, “diesel which is critical for running of SMEs was N131.47 in 2015, it now costs above N700; fuel: official and black-market was N87/155 in 2015, it now costs N167/350.

“Aviation fuel/air ticket rate on domestic flights was N110 per litre/N18,000 in 2015, it now hovers around N700 per litre/N70,000, where available. Indeed, that the scarcity of fuel which has resulted in loss of several man hours is a disgrace to Nigeria.

“The collapse of the national grid (126 times in 7 years – (June 2015 to March 2022) and its consequences for non-availability of power is most unfortunate.

“Kerosene (NHK) used by the ordinary Nigerian for cooking and power was N180 in 2015, it now sells at N450; the Liquefied Petroleum Gas (LPG) – 12.5kg Cylinder sold for N2,400 in 2015, is now sold at between N8,750 and N10, 000.

“Prices of basic food stuffs are now three times higher than what they used to be in 2015.”

He added: “Staple foods such as rice, beans, cassava flakes are now slipping out of the hands of average Nigerians. Indeed, a bag of rice sold for N8500 in 2015 is now N39,000,” the PDP governors stated.

They pointed out that unemployment rate was 11.4 per cent in 2015, but it is now over 33 per cent, one the highest in the world and that poverty rate which in 2015 was 11.3 per cent, has risen sharply to about 42.8 per cent presently.

According to the PDP governors, “Accumulated Inflation in 2015 was about four per cent, it is now 15.50 per cent; inflation rate was 9.01 per cent in 2015 and now 15.7 per cent.

“Perhaps, the exchange rate has been one of the most disastrous. It was N150 to a dollar at the parallel market (patronised by most businessmen and Nigerians) rate in 2015, it is now about N580 to a dollar and still rising. In terms of debt and debt servicing, domestic debt of N8.4 trillion and external debt of $7.3 billion was incurred between 1999 and 2015,” the governors lamented.

Furthermore, they noted that while domestic debt of N7.63 trillion (June 2015 to December 2020) and $28.57 billion as at December 2020 was incurred, external debt of $21.27 billion was incurred between June 2015 and 2021.”

In addition, the governors pointed out that National Debt to Gross Domestic Product (GDP) ratio was 23.41 per cent (2016), but presently stands at 36.88 per cent (2022), while the Corruption Index had risen from 136 in 2015 to 150 presently.

According to the PDP governors, Nigeria’s Misery Index, an indicator used in determining how economically well off the citizens of a country are, usually calculated by adding the seasonally adjusted unemployment rate to the annual inflation rate, has moved from 14.75 per cent in 2015 to 50.48 (2021).

The PDP governors lamented that the major threat to the agricultural sector and food security in Nigeria was insecurity.

“In the northeast of Nigeria, it is estimated that no fewer than 70,000 hectares of arable farmland have been abandoned in the affected states and local government areas. The trend is the same all over the country,” further contributing to food inflation.

In view of these, the PDP governors declared that, “the APC-led federal government must take steps to cooperate with states to bring security down to the grassroots.”

Consequently, the PDP governors said, “We lament the terrible pain and hardship facing Nigerians in virtually all aspects of life,” arguing that life was much better in 2015, under the PDP than presently under the APC as exemplified in the itemised comparative indicators it obtained mainly from the National Bureau of Statistics:

They expressed surprised that in the face of the, “statistics of complete failure in all ramifications and areas, the APC still wants to be on the ballot in 2023,” describing the APC as a menace to Nigerians.

The forum of governors urged Nigerians to reject the APC, “a party run undemocratically by a Committee contrary to the constitution with President Muhammadu Buhari regularly issuing instructions and dictates,” adding that it was “impossible for a party so disorganised to offer good governance to the people of Nigeria.”

The communique of the PDP governors also expressed concern and alarm over various reports and claims of incidents of stealing of crude oil ranging from 80 to 95 per cent of production made by industry practitioners and called on the federal government to set up an appropriate mechanism to reverse this trend and bring perpetrators to account.

The PDP governors once again decried the inability of the Nigerian National Petroleum Company (NNPC) to make its statutory contributions to the federation account, in spite of oil selling at above $110, adding that it was patently unconstitutional for the NNPC to determine at its whim and discretion when and what to pay to the Federation Account, as it is a mere trustee of the funds for the three tiers of Government: Federal, States and Local Governments.

As a result, they called for investigations and audit of the quantity of consumption of fuel ascribed to Nigerians and for deployment of technology at the filling stations to determine in a transparent manner the volume of consumption.

The PDP governors stated that the actions of the NNPC was contrary S.162 (1) of the 1999 Constitution of the Federal Republic of Nigeria as amended which stipulates that, “The Federation shall maintain a special account to be called “the Federation Account” into which shall be paid all revenues collected by the Government of the Federation… “

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