Following the excruciating economic hardship being face by many Nigerians, the House of Representatives has called on the Federal Government to reverse the trend.
Recall that the economic situation in the country worsened with the recent hike in the pump price of Premium Motor Spirit, PMS, otherwise known as petrol and cost of cooking gas.
The News Agency of Nigeria, NAN, reports that the call was a sequel to a resolution to a motion by the Minority Leader, Rep. Kingsley Chinda (PDP-Rivers) at plenary in Abuja on Wednesday.
Chinda, while moving the motion, stressed the need for interventions targeted at price relief, tax reductions, or subsidies on cooking gas. He also called intervention in the cost of liquefied petroleum gas, LPG, whose price is going beyond many low-income households.
The lawmaker noted that Nigeria, as an oil-producing nation, had historically relied on petroleum products and cooking gas (LPG) as essential sources of energy for both domestic and industrial purposes.
He stated that in recent months, the prices of petrol and cooking gas had skyrocketed and continued to do so. Thus, creating an unsustainable financial burden on ordinary Nigerians and exacerbating the cost of living in the country.
According to him, the removal of fuel subsidies, coupled with global oil price volatility and the depreciation of the Naira, had contributed significantly to the rising cost of petrol and cooking gas for households.
He said, “Nigerians are worried that the escalating fuel and gas prices are impacting on the transportation, food, essential goods and healthcare as well as increasing inflation.
“Further push on the prices of these two items had exposed many families to deeper financial hardship.
“Businesses, particularly small and medium enterprises (SMEs), are struggling to manage their operational costs. And this is due to increased fuel prices, threatening economic stability and job security.
“The Federal Government has the refining capacity to address some of these issues. But has yet to deliver significant results in this regard.
“The rising cost of petrol and cooking gas poses a significant threat to the livelihood of millions of Nigerians. And unchecked inflationary pressure caused by the increased prices can lead to social unrest, increased poverty rates, and negative long-term economic effects.”
The PDP lawmaker stated that unless urgent and pragmatic steps were taken to control the rising cost of petrol and cooking gas, the nation would go into economic crisis. Which could lead to negative outcomes like increased crime and mortality rates.
Adopting the motion, the House called on Nigerian National Petroleum Corporation Limited, NNPCL, Ministry of Petroleum Resources and other relevant agencies to expedite action on the repair/maintenance of domestic refineries.
The House maintained that an increase in local refining capacity will serve as a stop-gap measure to reduce the dependence on imported refined petroleum products.
The Reps also urged the Central Bank of Nigeria, CBN, to implement monetary policies that would mitigate the adverse effects of petrol price hikes on inflation. With particular regard to essential goods and services.
The lawmakers, therefore, urged the Federal Government to explore alternative energy sources and diversify the country’s energy mix to reduce reliance on petrol and gas. This, the House agreed could be done by promoting renewable energy solutions that were more sustainable and affordable.
The Reps also urged State Governments to adopt policies that could alleviate the financial burden on the citizens. Such as waiving taxes or levies on transportation and goods affected by high petrol costs.
The Speaker, Tajudeen Abbas, while ruling on the motion, mandated the Committees on Petroleum Downstream and Legislative Compliance to ensure compliance. The Committees are to report back to the House within two weeks for further legislative actions.
source: Vanguard
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