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HIKE IN ELECTRICITY,PETROL: CAUSES AND WAY OUT

HIKE IN ELECTRICITY,PETROL: CAUSES AND WAY OUT

Sep 16, 2020

Having observed the current pump price in Nigeria and the latest electricity tariffs the government announced among other recent policy change which led to clamour, Nigerians have taken to social media platforms and are wondering if the current government is better than the former administration. Frustration as Nigerians reject 100% increase for new electricity tariff - See how much you will pay & seven reasons why NERC suddenly hike the tariffs. Accountable Nig, discovered that policy changed created a lot of uproar in the nation five government policy that give Nigerians compare Buhari & Jonathan administration.

Some of the policy includes: Electricity tariff. Only days earlier, the government increased electricity tariffs by more than 100% and took effect on September 1st, 2020. Reports claimed that the increment was part of the requirement for the approval for the proposed World Bank loan for the power sector. "We also move forward for our power sector reforms - with technical assistance and financial support from the World Bank - including through capping electricity tariff shortfalls this year to N380bn and moving to full cost-reflective tariffs for 2021," the Nigerian government took the letter sent to International Monetary Funds (IMF). Although the new tariff from NERC not cost-reflective enough, Nigerians. Also this has  lead to the view of saying Nigerians are yet to witness the end of increment of goods and services, in the light of these the government still needs to push the tariff to less cost reflectiveness.

In 2013 when the electricity regulator under former president Goodluck Jonathan increased tariffs, Nigerians were so angry that even the Socio-Economic Rights and Accountability Project (SERAP) called it "anti-people". At the time, electricity across the country was less than 30 kWh. Despite the fact that the tariff was lower than what Nigerians are paying now, the former president Jonathan still wanted to reduce it by 50% in 2015, but some Nigerians believed it was for the sake of election. That is why the administration wanted to reduce it.

Fuel increment

Not only electricity got Nigeria wondering, the increment of petrol price triggered the anger of Nigerian to the government, the government announced on Wednesday the price of petrol has increased to 151.56 per litre from 148 naira. For January 2012 when former president Goodluck Jonathan removed fuel subsidy, the move led to a national protest, and popular Occupy Nigeria. Jonathan left for office in 2015 and many people believe that removing  subsidy Is part of the reason he lost his 2015 election. Some said, the current All Progressives Congress that was in the opposition during the former administration would have organised a protest. Deji Adeyanju, an activist and former member of People Democratic Party (PDP) the biggest opposition party in Nigeria, even asked why people didn’t come out to protest on the fuel increase.

Here are a few breakdown of the petrol price between 2000 - 2020.

June 2000, The price of petroleum na N22 per litres.

1 January, 2002 dem increased the price from N22 to N26 per litre.

23 June, 2003 The Federal Government increased the price from N26 to N40 per litre.

29 May, 2004 Federal Government increased the price from N40 to N50 per litre. August, 2004 The Federal Government increased the price from N50 to N65 per litre.

27 May, 2007 people who buy fuel gas pay N75 per litre. After people protested increased, the government reduced the pump price to N65 per litre in June 2007.

1 January, 2012 The Federal Government announced a fuel subsidy to increase the price of PMS to N141 per litre.

Another protest happened for the sake of this increase, thousands of people marched in the street, and tagged the protest the government later reduced the price to N97 per litre.

18 January, 2015 - Sake of crash in the price of crude oil for the International Market, the former minister of petroleum, Mrs. Diezani Allison Madueke announced the reduction in the price of Premium Motor Spirit from N97 to N87. May 2016, the price of petrol later increased to N145 per litre, the Minister of State for Petroleum,

Mr. Ibe Kachikwu says the increase comes to balance the different prices Nigerians usually pay to buy fuel for the marketers sake of fuel scarcity. March 2020 - Sake of the crash in crude oil prices for the international market, pump price of Premium Motor Spirit (PMS) moved from N145 to about N125 per liter.

After one month, of the second time in May 2020, the Petroleum Products Pricing Regulatory Agency (PPPRA) announced a new pump price band to between N121.50 to N123.50 per litre for petrol. High unemployment The rate of unemployment has gone up since 2015 when President Buhari entered office.

Although, between 2010, the fourth quarter of 2015, unemployment rate increased and went down,Unemployment rate of 6.4% for last quarter of 2014 and now the rate is 27.1%, according to the recent data from the Nigerian Bureau of Statistics. WNBS added that the "rise in the unemployment rate doesn't mean an increase in job losses.

Rather, an increase in unemployment occurs as a result of several reasons, of which the loss of an existing job is just one. Rise in unemployment generally means the number of people Inflation rate. Also, the price of goods and service too don't go up as the Consumer Price Index released by NBS in July show. "This consumer price index, (CPI) measured inflation increase by 12.82 percent (year-on-year) for July 2020. This is 0.26 percent points higher than the rate recorded for June 2020 (12.56) percent" bureau report.

"This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Fruits, Oils and fats, and Fish, "NBS took. the Announcement of current pump price in Nigeria and the latest electricity tariffs recent policy change made annoyed Nigerians for protests and demonstrations for some parts of the country Naira fall Also the exchange rate doesn't jump up despite promises to reduce the Naira rate against the dollar. when Naira falls during the former administration but for 2015 that president Muhammadu Buhari entered office, naira to dollar was around N250 to $1. Specifically, on December 25, 2014, dollar to 185 before Central bank of Nigeria (CBN) devalue Naira under former president Jonathan, According to CBN on May 28, 2015, a day before ex-president Jonathan hand over to President Buhari, dollar was $197 to N1.

As at today, dollars now sell for 380 at the central bank. Accountable Nigeria, urge both Nigerian youth and indigenes to observe very well before taking any step as we hope things go well in our country However, we hereby call on the necessary quarters to do the needful and help Nigerians ease the pains we go through. Insecurity President Buhari promised to tackle Boko haram and other insurgency happening in the north, but in recent times, the fight for Kaduna and bandit attack on other places in the country has made lot of people wonder if the government is still in charge However, the number of Boko Haram victims has reduced, according to Council on Foreign Relations (CFR) tracking the rate of insecurity in the country. According to the data CFR gets, Borno state has the highest number of deaths in the country's Boko Haram fight. Nigerians begin to worry about how Nigeria will be by 2023 when the tenure of current President Muhammadu Buhari ends. One Twitter user, Kelvin Odanz, said people shouldn't think the administration will have an "happy ending".

According to him “ This is just a reminder that Buhari will be our President till 2023. And if you think this has a happy ending, you haven't been paying attention.

However Accountable Nigeria hereby urges fellow Nigerians to keep calm as we hope all things get restored to normal as soon as possible and also implore us to use our social media handles effectively, responsibly and with all forms of accountability.

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