Friday, 22 September 2023

Prof Samuel, others advocate effective, sustainable Palliative delivery strategies …Call for subsidy for farmers, local refineries, tax relieve for manufacturers

Prof. Odewumi Samuel, a Professor of Transport and Logistics, Lagos State University (LASU), Chairman, Road Sub-Committee, CIOTA, and other experts have advocated more effective, sustainable Palliative delivery strategies in the country.

Prof Samuel also called on the Federal Government to subsidize fertilizers for farmers, crude for local refineries, and tax relieve for manufacturers.

The experts made the disclosures during a Zoom Meeting organized by Chartered Institute of Transport Administration of Nigeria on Thursday, September 21, 2023. The event was CIOTA Roundtable Discussion on Effective and Defective Palliative Delivery Strategies.

Prof Samuel said “Everything possible should be done to ensure security of lives and property in the land, significant increase in crude production to sure up revenue to strengthen the naira, the oil thieves must be exposed and punished to stop the larceny going on in the Niger Delta, we can subsidize production (subsidized fertilizers for farmers, subsidized crude for local refineries, tax relieves for manufacturers).

While speaking on the sub-topic, ‘Getting it Right: Effective and Sustainable Palliatives’, he advocated payment of hardship allowance, sustainable salary increase for workers, payment of retirees’ pensions and arrears and all debt owed workers.

He also stated that the N5billion given to each of the 37 state governors should be used for rolling out Gas Conversion and Dispensing infrastructure; and that government should direct and assist petrol stations to be able to achieve triple dispensation, fuel, gas and electricity.

Prof Samuel also urged the government to palliate the roads to make them passable for all and to facilitate fuel distribution by the tankers and trailers, use of train to move cheaply and securely fuel and solid freight to relieve the roads of excessive weight; and increased refined fuel supply.

He urged citizens to challenge the states and local governments to be more creative, and address their local challenges, saying that local and state governments should stop depending on the federal government for ideas and funds, and advised then to mobilize the media to make the state and local governments more responsible in the palliative deliveries. He said that states should stop complaining that it was only N2billion that was disbursed out of the N5bllion promised and should show what they did with the N2billion and their own bonanza monthly revenue allocations.

Prof Samuel called on government to ensure effective communication with the citizens; sincere and robust engagement with Labour, avert any strike calls that will worsen the situation and tip the economy further downhill; among other measures.

Earlier, Prof Samuel maintained that there is no doubt that removal of subsidy is inevitable, adding that the delay till now has made it more excruciatingly painful. He said “We ought to have taken the bitter pill in 2012, but now we must take a painful injection.”

He said any delay beyond this point would require an invasive surgery, saying “Indeed we could not even continue if we wanted to, because we have to borrow to continue the bazaar, and again nobody is willing to lend money to Nigeria for such economic debauchery anymore.”

He said after the big bang “subsidy is gone” and Forex reform that followed, fuel price tripled, transportation cost went up, prices of goods and services went up, and therefore, suffering descended on the land, and the cries of Palliatives rent the air.

Having defined palliative as ‘…a medical care relieving pain without dealing with the cause of the condition’, he said because it was not thought through what should be done aftermath of the subsidy removal  fire brigade approach was adopted, throwing money, foods, transportation and other so called palliatives at it. He said the decision was taken without budget allocation, before Tinubu was sworn in. He therefore stated that the essence of the discourse was to find solution and not just to describe the problem.

Speaking on current palliatives and its defects, he paid particular attention on the allocation of N5billion to each state as palliative, saying that states are neither equal in population nor size, adding that state governments lack transparency, prudence and accountability on such largesse in the past, citing Ondo State where the Deputy Governor is being accused of spending N300million from the fund to buy Bullet Proof Jeep which is reason he is being impeached.

Other palliatives that have not been well managed include Cash Transfer of N8000 per family from the $800million Word Bank loan meant for 12million families for six months.

Distribution of food items, maize gains, 40, 000 bags; rice 5 trucks per state, fertilizers, 100 trucks.

He said the current 11,000 Gas-powered vehicles, 55000 conversion kit, 500 buses have their defects for apart from being inadequate, there is no concerted efforts and no clarity in the distribution template.

He decried loan/grant for SMES, and industrial sector, student loan, salary increase, refinery repair, saying there is slow action on fulfillment, and that programme at conception not thought through completely.

Bayero Salih Farah, Director General/Chief Executive Nigerian Institute of Transport Technology (NITT) Zaria, an apex Multi-modal Management Development Institute for the Transport and Logistics Industry in Nigeria and the West African Sub-region, while speaking on NITT Template of Effective Technological Palliative, began with what he titled Fuel subsidy regimes in Nigeria. He said Fuel subsidies began in the 1970s and became institutionalized in 1977, following the promulgation of the Price Control Act which made it illegal for some products (including petrol) to be sold above the regulated price. While the concept of subsidy itself is noble, according to him, its administration in Nigeria has been plagued with serious challenges, which include; the Unsustainable financial cost of subsidy, Economic distortion, Smuggling of fuel outside the country, Endemic corruption, Reduced Investment in the downstream sector, among others.

Speaking further on what he called The NITT Initiative he said, “Saddled with the mandate to “Drive innovations through development of new technologies to meet the demands of the transport and logistics Industry”, the Institute is researching and developing alternative fuel solutions for the transport industry.” These initiatives include:  Bio-fuel from different sources e.g Jatropha, hibiscus, organic wastes and sunflower; Electric Vehicles Solutions with emphasis on renewable charging solutions, and Autogas (both LPG and CNG) solutions through conversion of Fossil fuel engines to Autogas fuel engines or hybrid engines.”

Farah also stated that the Institute is adopting a tactical technological transformation and migration to alternative fuel (Autogas) especially for the transport and other economic sectors through the production of grassroot manpower to drive the migration and through the provision of adequate enabling facilities, equipment and infrastructure to support the migration.

Furthermore, leveraging on the mandates of the Institute and the emerging technology in Autogas (LPN & CNG), according to him, the Institute initiates actions that could stimulate Vehicle and other Equipment conversion in a more formal and standardise way (best practice) across the Country.

He disclosed the NITT Aspiration is which to Provide pool of qualified technicians for conversion, repair and maintenance across the country; Provide conversion centres across the country for vehicle conversion and training technicians; among others.

He disclosed what he called NITT vision on Palliatives which include Making Vehicle Conversion simple for everyone in the society, Minimize the effects of fuel subsidy removal to the people; Continue to promote Autogas as alternative Transportation Fuel; Provide economic opportunities by creating new jobs and grow a low carbon skills-based through innovation; and Creating a flexible, smart and digitized Autogas conversion system.

On his part, Prof. Callistus Ibe, a Professor of Transport Management, Federal University of Technology Owerri Imo State, spoke on the topic “Offering the politicians suggestions on palliative delivery; the productive ways of effective palliative delivery”.

He said that whenever the transport sector sneezes, all other sectors catche cold depending on the severity level of the sneeze of the transport sector. Consequently, the sneezing of the transport sector as a result of fuel subsidy removal has brought about intense hardship on the people leading to increase in cost of living and poverty.

Ibe added that a productive way of distributing the palliative should follow the Chinese Path of Teaching the Citizens How to Finish Instead of Giving Them Fish Through deliberate, focused, persistent, patriotic and sustainable government policies.

On what he called Proper Ways of Delivering Palliatives, he talked about Greener Mass Transportation Alternative and Productive Distribution

He said “The act of distribution of raw food items at best is a fire bridge approach, it is not focused nor is it persistent and cannot be sustainable over some period of time. It is a non-productive process that is based on consumerism approach rather than a productive approach that would have reduced the sufferings occasioned by the fuel subsidy removal.”

Ibe stated that the consumerism approach has created billionaire businessmen and women overnight who buy off these food items in the market thereby compounding the initial problems the policy is meant to address.

He added that a more effective and productive way of reducing the sufferings of the people is to Reduce the cost of transportation through mass transportation and alternative energy sources. “This productive approach would create jobs, open up employment and income will be earned; This single approach will have positive multiplier effects; It will be focused, persistent, patriotic and sustainable; The operators of the mass transit would be given guidelines to form business combines among themselves through co-operatives and vehicles would be allocated through the co-operatives and not individuals,” among other ways.

 

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