NES wants subsidy removed from power, petroleum sectors

Gbola Subair, Abuja - 19.03.2008

THE Nigerian Economic Society (NES) has advocated the removal of subsidy in the power and petroleum sectors of the economy.

NES, at its Seventh Annual Public Lecture held on Tuesday in Abuja, observed that the privatisation exercise, which started about 20 years ago, should be accelerated and extended to the two major sectors, which now constitute the greatest obstacle to the future development of Nigeria.

Professor Vremudia P Diejomaoh, a fellow of NES, who presented the public lecture, identified the sectors as the power generation and distribution sector and petroleum products production and distribution sector.

He said market prices must be allowed to determine prices in the sectors, without which, there would be no incentives for private sector investments while the nation would continue to be trapped and caught in the vicious circles which had characterised the sectors in the past.

Prof. Diejomaoh suggested that appropriate monetary and fiscal policies and administrative measures should be taken to protect the interest of vulnerable groups that would be affected by the reforms.

If there was to be social justice, he said market principles should equally be extended to the labour market so that workers would be able to bargain collectively, and employers, both in the private and public sectors, respect the rights of workers to bargain collectively and for collective bargaining agreements to be respected and implemented.

He said outstanding labour legislation needed to be passed while workers on their parts needed to act within the labour laws.