THE Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has expressed shock over the removal of the fuel subsidy which has led to a hike in the price of PMS (petrol) from N65 to between N141 and N150 per litre, representing 117% and 131% increase, a development that has led to immediate hoarding and non-availability at fuel stations.

According to the President of the Chamber, Dr Herbert Ademola Ajayi, the development has brought about confusion and disappointment considering the high hopes and expectation of business operators and Nigerians generally, following Mr. President’s New Year message to the nation.

“The Federal Government’s poorly timed announcement has continued to be trailed by expected condemnation from most citizens while a coalition of Labour, Civil society groups and other interest groups are warming up for a nationwide strikes starting from Monday 9th January, 2012.”

“Our major stance is to play a dominant role in the deregulation of the downstream sector. However, the true subsidy must first be determined before commencement of a phased removal, preferably after existing and new private refineries are enabled and assisted to meet nation’s demand. To avoid worsening corruption, inefficiency, leakages and waste associated with public utilities, government should resist the temptation to build and operate new refineries, while existing ones should be privatised.”

NACCIMA agreed with the Federal Government that fuel subsidy removal was inevitable with deregulation of the downstream sub-sector of the petroleum industry.  “However, we are convinced that the timing of this removal is wrong and does not address the immediate effect on the citizens and business and may not achieve the desired result.   If Government had been more advisedly patient and allowed for on-going apparently meaningful and effective consultations to be concluded, in addition to the awaited National Assembly conclusion, it would have been much easier to douse tensions, even as we accept the saying that “If a Leader would wait for everyone for changes, nothing would ever be accomplished.”