President Goodluck Jonathan
President
Goodluck Jonathan yesterday said government is still planning to
withdraw petrol subsidies but that consultations will be held first to
decide the best way to do it.
Speaking at the Economist Magazine’s
Nigeria Summit in Lagos, Jonathan said the subsidy regime is wasteful
and corrupt, and that only the “affluent middle class” benefits from it.
“Our investigation into corrupt
practices in the fuel subsidy scheme has led to the recovery of large
sums of money, and prosecution of suspected culprits,” the President
said.
“We cannot continue to waste resources
meant for a greater number of Nigerians to subsidise the affluent
middle class, who are the main beneficiaries,” he added.
Jonathan’s previous attempt to end
petrol subsidies sparked street protests and national strike in January
last year, forcing the government to partially reinstate the subsidy.
Civil society groups and labour unions
have vowed to resist any fresh attempt to withdraw the support regime,
which will mean rise in petrol prices.
When the Federal Government cut
subsidies last year, petrol prices rocketed to nearly N200 per litre
from N65 per litre. The current official price per litre is N97.
‘Illegal, null and void’
Jonathan yesterday did not specifically say how the public consultations will be held ahead of the planned subsidy removal.
But as he spoke in Lagos, a court in
Abuja declared the deregulation of the petroleum industry as illegal.
Government has insisted that deregulation will save billions in subsidy
funds which would then be funnelled towards infrastructure development.
Delivering a judgement in a case
instituted by Lagos-based private lawyer Bamidele Aturu, Justice Adamu
Bello of the Federal High Court declared that the deregulation policy is
unconstitutional, illegal, null and void.
Aturu went to court challenging the
2009 decision of the government to deregulate prices of petroleum
products in Nigeria. He sought an order restraining the government from
deregulating the downstream sector of the petroleum industry or from
failing to fix the prices of petroleum products as required by the
Petroleum Act and the Price Control Act.
In the judgment, the court said the policy of deregulating the sector by not fixing petrol prices is unlawful.
Justice Bello said government must
always fix the prices of petroleum products sold across the country as
stipulated in the Petroleum Act and Price Control Act.
The Attorney General of the Federation
and the Minister of Petroleum Resources, who were joined as defendants
in the suit, had argued that Aturu lacked the locus standi to institute
the action and asked the court to strike it out.
But the court said on constitutional
matters, the law of public litigation allows Aturu to file the suit
because the issues raised affect him and other Nigerians.
Justice Bello ruled that the
deregulation policy is in conflict with Section 16(1)(b) of the 1999
Constitution which provides that the government should control the
national economy in such manner as to secure the maximum welfare,
freedom and happiness of every citizen on the basis of social justice
and equality of status and opportunity.
“The policy decision of the defendants
to deregulate the downstream sector of the petroleum industry by not
fixing the prices at which petroleum products may be sold in Nigeria is
unlawful, illegal, null, void and of no effect whatsoever being in
flagrant violation of the mandatory provision of section 4 of the Price
Control Act, cap P28, Laws of the Federation of Nigeria, 2004,” Bello
said.
He added that the deregulation policy
has the effect of making the freedom of movement (which is guaranteed in
section 41 of the 1999 Constitution) illusory for the generality of
Nigerians and is therefore illegal, unconscionable and unconstitutional.
When contacted for comments yesterday,
a spokesman for the Ministry of Petroleum Resources, Mr Kingsley Agha,
said he was not aware of the judgement but pledged to find out when work
resumes today.
Officials of the Petroleum Products
Pricing Regulatory Agency (PPPRA), which is responsible for regulation
of petrol prices, did not answer telephone calls and text messages sent
to them seeking for comments on the court decision.
Jonathan: We’re open to dialogue
In Lagos yesterday, President Jonathan
also said his administration would continue to fight corruption and
recovery of all ill-gotten wealth to ensure the principles of good
governance and successful implementation his transformation agenda.
“Corruption and issues of good
governance are also being vigorously tackled on all fronts,” said
Jonathan, who came under criticism over the past week for granting state
pardon to corruption convict, former Bayelsa State governor Diepreye
Alamieyeseigha.
“The recent dismissal of three judges
found to have compromised their offices is an unmistakable signal of
zero tolerance for corruption in the judiciary,” he added.
Jonathan said he was using a
three-pronged pronged approach to tackling terrorism, including through
strengthening of counter-terrorism cooperation with neighbouring
countries.
“Our second approach is openness to
political dialogue. We believe, however, that this can only
realistically progress when the groups and individuals involved in acts
of terror, relinquish their anonymity, and come forward in sincerity to
make their objectives known to the Nigerian people,” he said.
The third approach, the president
added, focuses on economic inclusion targeting the disadvantaged
especially in the North East, with economic opportunities in
agriculture, entrepreneurial support, graduate employment and unskilled
jobs programmes.
The Economist Magazine Nigeria Summit is being held with the theme: “Enabling and Implementing Change.”
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