As Nigerians grapple with the challenges of subsidy removal, the Centre for the Promotion of Private Enterprise (CPPE) has called on President Bola Tinubu to urgently introduce measures, in the form of palliatives, to help minimise the suffering of the people.
According to the CPPE, the measures, which must be holistic and all-inclusive, should 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 corresponding inflationary pressure is already posing a threat to the livelihood of many, both within and outside the public sector.
Hence, he suggested that mitigating measures could be classified into immediate, short-term, medium and long-term to send the right signals to citizens and demonstrate the government is sensitive to the people’s plight.
He pointed out that immediate palliatives need to be activated not just concerning transportation costs, but also to tackle the surging cost of living.
Yusuf also called for the acceleration of reforms in the foreign exchange market, especially the unification of the exchange rates, in line with the President’s pronouncement, noting that this will create a level playing field in the forex market and pave the way for fair 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 per cent 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 (SKD) parts for the assembly of mass transit buses should be waived,” he said.
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.
He noted: “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 and others should be trimmed to reflect the current mood of the nation. In addition to its symbolic significance, this would support the fiscal consolidation agenda of the government.”
