Nigerian President Goodluck Jonathan (pictured) has partly backtracked on the country's rapid moves to deregulate fuel prices, announcing a 30% cut in the price of gasoline as his Government seeks to quell unrest over the doubling of prices at the pump. Speaking in a nationwide radio address, Jonathan said that considering "the hardship being suffered by Nigerians" had prompted the move after consultation with State Governors and the leadership of the National Assembly.
The fuel subsidy programme, which costs the state an estimated $8bn per year, was withdrawn on New Year's Day, which led to a doubling of petrol prices from 65 naira per litre to 140 naira. A nationwide strike and protests against the move, which have seen several Nigerians killed, entered a second week following failed negotiations with labour unions as the President issued his address.
"Although, the economic imperatives for the policy have been well articulated by government, the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) went ahead to declare a nationwide strike. There was also near-breakdown of law and order in certain parts of the country as a result of the activities of some persons or groups of persons who took advantage of the situation to further their narrow interests by engaging in acts of intimidation, harassment and outright subversion of the Nigerian state. I express my sympathy to those who were adversely affected by the protests," said Jonathan. "[The] Government will continue to pursue full deregulation of the downstream petroleum sector. However, given the hardships being suffered by Nigerians, and after due consideration and consultations with state governors and the leadership of the National Assembly, government has approved the reduction of the pump price of petrol to N97 per litre. The Petroleum Products Pricing Regulatory Agency (PPPRA) has been directed to ensure compliance with this new pump price."
The Minister for Petroleum Resources, Diezani Allison-Madueke, also initiated a probe into fuel subsidy payments to address allegations of fraude. Ms Allison-Madueke invited the Economic and Financial Crimes Commission to review all payments made under the subsidy scheme.
PetrolWorld 18012012
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