SEASON OF HIKES: Nationwide outrage as FG jerks up prices of petrol, electricity
The Federal Government last week in a surprise move increased the pump price of premium motor spirit, otherwise known as petrol while at the same time hiking electricity tariff. These developments have continued to draw outrage, condemnation, and angst amongst the people, Babajide Okeowo reports.
For the third month in a row, petrol prices in Nigeria were increased from slightly over N121 per litre in June to over N143 in July, N150 in August, and now N162 in September.
Similarly, electricity tariff was increased from about N30.23/KWH {Kilowatt unit of energy per hour} to as much as N62.33 per KWH representing up to 100 per cent increase in some cases.
According to the Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) in August, Nigeria’s inflation rate rose by 12.82% (year-on-year) in July, compared to 12.56% recorded in June 2020. This is the highest rate recorded in 27 months since March 2018 when headline inflation was 13.34%.
The recent increase in the price of petrol and hike in electricity tariff is further expected to drive inflation further through the roof and worsen the living conditions of many Nigerians if the fears of Human Rights Groups, Civil Organizations, prominent Nigerians are anything to go by.
Raising this alarm is the Committee for the Defence of Human Rights, CDHR who feared that the hikes on Value Added Tax, petrol pump price and electricity tariff by President Muhammadu Buhari-led administration will deny the poor and downtrodden Nigerians the right to a decent standard of living.
The group demanded the immediate and unconditional reversal of the hikes and the resignation of Buhari as the President of Nigeria.
According to a statement by its National President, Dr. Osagie Obayuwana, the CDHR described the hikes as “needless, insensitive, unconscionable, ruthless, monstrous, anti-people and a calculated tactic to further enrich the ruling class and their cronies.
“The hike in VAT and the just-announced hikes in petrol pump price and electricity tariff has led to hikes in prices of goods and services nationwide, bearing in mind that ours is a volatile economy that is already plagued by inflation, currency collapse, and stagnated wages/salaries.
There is an accurate forecast of a foreseeable general increase in house rents across the country, as landlords/landladies would certainly seek to pass on the heavy punch of the hikes.
“We strongly condemn these increases and demand their immediate and unconditional reversal, as, amongst others, they clearly deny the people of their inalienable human rights to dignity, decency of standard of living, and economic wellbeing, as enshrined in Chapter II of the 1999 constitution of the Federal Republic of Nigeria (as amended), African Charter on Human and Peoples’ Rights and the United Nations’ Covenant on Social, Economic, and Cultural Rights” the group said.
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On his part, the Acting Director-General of Manufacturers Association of Nigeria (MAN), Mr. Ambrose Oruche while reacting to the hike said this was expected because the petroleum industry was now fully deregulated, and prices will keep fluctuating. He however wants the government to do all it can to cushion the effect.
“Small businesses will be impacted negatively by the increment. To reduce the impact on businesses, the government should do more in ensuring that power generation and distribution is efficient to cut dependence on power generators” he said.
An economist, Chijioke Okechukwu, said the latest hike in petrol price is capable of leading to marginal inflation in the economy.
Okechukwu, who was a former Director-General of the Abuja Chamber of Commerce and Industry (ACCI), said the hike in price will lead to a further increase in the prices of goods and services in the economy.
A Nigerian Osazee Ikponmwosa while reacting to the development expressed his worries about the rising cost of living in the country which will be further exacerbated by the recent double increases.
“Naira devalued, fuel price increased, electricity tariff increased and you do not want the want food prices to remain the same won’t you factor in production and transportation cost, he asked rhetorically.
On his part, Kareem Abdulrasaq on Twitter expressed his worry over the rising cost of food items in the country.
“Enough is enough. The food price is already increased. The current fuel price increase will further skyrocket the food price. Ordinary Nigerians are suffering” he lamented.
Outrage greets announcement of increase
Since the announcements of the increases were announced, prominent Nigerians, Human Rights Groups, Civil Organizations, and many Nigerians have called for a reversal of the increase while condemning the increase.
One such group; The Socio-Economic Rights and Accountability Project (SERAP) described the increase as a ‘blatant affront to decisions by UN special rapporteurs banning any arbitrary increase in tariff.
The group further called on theNigerian Electricity Regulatory Commission, NERC to immediately reverse this ‘illegality’.
“Electricity tariff increase is a blatant affront to decisions by UN special rapporteurs banning any arbitrary increase in tariff. The NERC must immediately reverse this illegality.
President Muhammadu Buhari should instead cut corruption in the Ministries, Departments and Agencies, MDAs, National Assembly, and Presidency allowances.
Rather than taking measures to address the consequences of COVID-19 on people’s rights, Nigerian authorities are pushing to increase fuel price & electricity tariff.
This will disproportionately hurt the poor already in precarious economic situations, and exacerbate inequality.
Nigeria has human rights obligations under the International Covenant on Economic, Social, and Cultural Rights to ensure people’s right to an adequate standard of living, so that everyone enjoys the rights necessary to live in dignity” the group said.
Similarly, the Nigeria Labour Congress (NLC) rejected the increase in fuel pump prices by the federal government.
NLC President, Comrade Ayuba Wabba while rejecting the increase in the strongest terms expressed worries that the Nigerian government is taking Nigerians for granted.
On his part, former Vice President of Nigeria and Presidential candidate of the People’s Democratic Party, PDP rejected the increase while stating that Nigerians need a ‘stimulus and not a disregard for the challenges Nigerians are facing’.
“I reject the increased electricity tariffs. Coming out of the lockdown, Nigerians need a stimulus, not an impetuous disregard for the challenges they face. Many Nigerians have not earned an income for months, due to no fault of theirs. This increase is ill-timed and ill-advised” he objected.
Buhari has interest of Nigerians at heart- Bashir Ahmad
Meanwhile, Bashir Ahmad, Personal Assistant on New Media to President Muhammadu Buhari has reiterated the president is worried about the spiraling cost of food prices and disclosed that plans are underway to address the issue.
“The President is very concerned about the sudden spiral of food prices, the situation is transient. The Government has already begun looking and putting in place measures to ameliorate the situation. Various food producers, particularly those of rice and other grains are engaged” he disclosed.
