Nigerians have been urged to see the increase in the prices of electricity and premium motor spirit (PMS) commonly known as petrol as a blessing in disguise.
Speaking on Monday at the first year ministerial performance review retreat at the State House Conference Centre, Abuja, President Muhammadu Buhari said the new hike in electricity tariff will make Nigerians enjoy better service.
According to him, “the implementation of a willing buyer, willing seller policy for the power sector has opened opportunities for increased delivery of electricity.”
He assured Nigerians of the willingness and determination of the federal government to provide stable electricity to every home and industry.
Mr Buhari noted that increase in the price of electricity and deregulation of the petroleum sector were crucial decisions that were taken at the beginning of the year, preceding the COVID-19 pandemic, and continuous delay in implementation of the policies, especially the deregulation of the petroleum would be detrimental to the economy, placing the burden of regular light cuts and fuel queues on Nigerians.
He assured Nigerians of the willingness and determination of the federal government to provide stable electricity to every home and industry.
Mr Buhari noted that increase in the price of electricity and deregulation of the petroleum sector were crucial decisions that were taken at the beginning of the year, preceding the COVID-19 pandemic, and continuous delay in implementation of the policies, especially the deregulation of the petroleum would be detrimental to the economy, placing the burden of regular light cuts and fuel queues on Nigerians.
“We are also executing some critical projects through the transmission, rehabilitation and expansion programme, which will result in the transmission and distribution of a total of 11,000 Megawatts by 2023,” he said.
The President emphasised that the target of providing 11,000 megawatts by 2023 was realistic and realizable, and would provide a lifeline for many businesses and improve the living conditions of many Nigerians.
Mr Buhari noted that he is aware of the economic challenges being faced by individuals, families and businesses, but stressed that the decisions had to be taken at this crucial time.
The President said the COVID-19 pandemic led to a severe downturn in the funds available to finance the nation’s budget.
READ ALSO: Nigeria Begins 2-Day First-Year Ministerial Performance Retreat
“One of the steps we took at the beginning of the crisis in March when oil prices collapsed at the height of the global lockdown, was the deregulation of the price of Premium Motor Spirit (PMS) such that the benefit of lower prices at that time was passed to consumers.
“This was welcome by all and sundry. The effect of deregulation though is that PMS prices will change with changes in global oil prices. This means quite regrettably that as oil prices recover we would see some increases in PMS prices. This is what has happened now. When global prices rose, it meant that the price of petrol locally would go up.
“There are several negative consequences if the government should even attempt to go back to the business of fixing or subsidizing PMS prices.
“First of all, it would mean a return to the costly subsidy regime. Today we have 60 per cent less revenues, we just cannot afford the cost. The second danger is the potential return of fuel queues – which has, thankfully, become a thing of the past under this administration.
“Nigerians no longer have to endure long queues just to buy petrol, often at highly inflated prices. Also, as I hinted earlier, there is no provision for fuel subsidy in the revised 2020 budget, simply because we are not able to afford it, if reasonable provisions must be made for health, education and other social services. We now simply have no choice.
“Nevertheless, I want to assure our compatriots that Government is extremely mindful of the pains that higher prices mean at this time, and we do not take the sacrifices that all Nigerians have to make for granted.
“We will continue to seek ways and means of cushioning pains especially for the most vulnerable in our midst. We will also remain alert to our responsibilities to ensure that marketers do not exploit citizens by raising pump price arbitrarily,” he said.
The President emphasised that he was “convinced that if we stay focused on our plans, brighter, more prosperous days will come soon.”
The President emphasised that the target of providing 11,000 megawatts by 2023 was realistic and realizable, and would provide a lifeline for many businesses and improve the living conditions of many Nigerians.
Mr Buhari noted that he is aware of the economic challenges being faced by individuals, families and businesses, but stressed that the decisions had to be taken at this crucial time.
The President said the COVID-19 pandemic led to a severe downturn in the funds available to finance the nation’s budget.
READ ALSO: Nigeria Begins 2-Day First-Year Ministerial Performance Retreat
“One of the steps we took at the beginning of the crisis in March when oil prices collapsed at the height of the global lockdown, was the deregulation of the price of Premium Motor Spirit (PMS) such that the benefit of lower prices at that time was passed to consumers.
“This was welcome by all and sundry. The effect of deregulation though is that PMS prices will change with changes in global oil prices. This means quite regrettably that as oil prices recover we would see some increases in PMS prices. This is what has happened now. When global prices rose, it meant that the price of petrol locally would go up.
“There are several negative consequences if the government should even attempt to go back to the business of fixing or subsidizing PMS prices.
“First of all, it would mean a return to the costly subsidy regime. Today we have 60 per cent less revenues, we just cannot afford the cost. The second danger is the potential return of fuel queues – which has, thankfully, become a thing of the past under this administration.
“Nigerians no longer have to endure long queues just to buy petrol, often at highly inflated prices. Also, as I hinted earlier, there is no provision for fuel subsidy in the revised 2020 budget, simply because we are not able to afford it, if reasonable provisions must be made for health, education and other social services. We now simply have no choice.
“Nevertheless, I want to assure our compatriots that Government is extremely mindful of the pains that higher prices mean at this time, and we do not take the sacrifices that all Nigerians have to make for granted.
“We will continue to seek ways and means of cushioning pains especially for the most vulnerable in our midst. We will also remain alert to our responsibilities to ensure that marketers do not exploit citizens by raising pump price arbitrarily,” he said.
The President emphasised that he was “convinced that if we stay focused on our plans, brighter, more prosperous days will come soon.”
