Grows Monthly IGR By 7,400% in 22 Years

Calls For Increase In Voluntary Tax Compliance

As Oba of Lagos Berates Leaders For Tax Evasion, Calls For Effective Data Collection

The Lagos State Government and its agency, Lagos Internal Revenue Service on Monday said the state’s Internally Generated Revenue grew by 7, 400% between 1999 and 2021 and called for increased nationwide voluntary tax compliance at the 149th Joint Tax Board Meeting held at Eko Hotels and Suites, Victoria Island, Lagos. The JTB meeting is a quarterly conference of chairmen of inland revenue service from the 36 states of the federation and the FCT to appraise performance and deliberate on tax issues at various levels of government across the country.

The Governor of Lagos State, Mr. Babajide Sanwo-Olu, who was represented by the Commissioner for Finance, Mr. Rabiu Olowo, at the opening ceremony of the two-day meeting, said Lagos remains the largest contributor to national non-oil revenues, by way of corporate income taxes, VAT, customs duties, and port charges, among others.

He said: “This is to be expected from the sub-national entity that is the most populous in the country and is also the biggest commercial hub. However, in the subsequent re-distribution of resources, we do not see any reflection of the contribution of Lagos State. Our share in this redistribution fails to take into account the demographic and infrastructural burdens and pressures that accompany being the economic nerve-center of the nation.

This state of affairs is what compelled the State, under the visionary leadership of Asiwaju Bola Ahmed Tinubu, to commence a transformational reform of its internal revenue process, within the ambit of the law. The result is that since 1999 the Lagos Inland Revenue Service (LIRS) has undergone the most extensive tax administration reforms of any sub-national government in Nigeria. I am pleased to let you know that Lagos State has grown its IGR from N600m monthly in 1999 to over N45bn monthly as of today, an astounding increase of 7,400%. It all began with ensuring the foundational autonomy of the LIRS, which the Lagos State Revenue Administration Law, 34 2006 helped achieve.”

The Executive Chairman of LIRS, Mr. Ayodele Subair, stated that the tax models applied in major countries of the world with high level of compliance have been difficult to replicate in Nigeria because all the phenomena that make it a success are not available in Nigeria. Subair said the models include the existence of high levels of literacy of taxpayers and efficient data processing systems which would aid detection of fraud and high levels of trust between Government and the people.

He said: “However, effort is being made by all tax authorities to improve on the ease of doing business and simplification of tax administrative processes which will in turn significantly advance the tax compliance levels within the country. In order for the government to provide the necessary infrastructures to aid growth and development there has to be co-operation by all stakeholders which would in turn occasion a shift in the way and manner by which tax is administered and ultimately sustain or increase tax revenue for the state.

“Therefore, taxpayers must avail themselves of the quid-pro-quo of taxation. They must remember that paying tax is not a mere civic obligation as some misinformed commentators would have it but a mandatory legal one. As administrators, we must ensure that our mandate is carried out effectively and efficiently without fear or favour. We must ensure that all assessments are justifiable and guarantee that due process is followed in our statutory functions.

“The judiciary must ensure that justice is not only done but seen to be done. All parties involved in the revenue adjudicatory process, seeking justice must get justice. Cases before the Courts and Tribunals must be dispensed with timeously so that the much-needed revenue that accrues to the States are recovered. Statutory provisions must be interpreted appropriately without misinterpretations and favour to any party. Revenue laws, particularly income tax laws, must be straightforward and easy to understand and be complied with. Penalty for non-compliance on the other hand must be steep and commensurate with the offense in such a way that it deters non-compliance.”

According to the Executive Chairman of Federal Inland Revenue Service and Chairman, JTB, Muhamad Mamman Nami, who was represented by the Coordinating Director of JTB, Mohammed Lawal Abubakar, the fact that Nigeria still struggles with low tax to GDP ratio shows that revenue generation system needs total overhaul.

Members of the JTB visited some tax-funded projects across Lagos State, including the new Massey Street Children Hospital, which is being upgraded to a 7-storey, 150 bed ultra-modern and fit for purpose pediatric and emergency general hospital; Lagos Rail Mass Transit (Blue and Red Line); and Lekki Craft Market. They also paid a courtesy visit to the palace of the Oba of Lagos, Oba Rilwan Osuolale Akiolu, who called for proper data collection to improve revenue generation across the country.

The Oba said: “Apart from salary earners, many citizens of Nigeria do not pay tax, and this is very important in providing infrastructure. We have to ensure that we voluntarily pay our taxes. Payment of taxes as at when due is the primary responsibility of any God-fearing leader or person.”

The Medical Director, Massey Children’s Hospital, Dr. Abimbola Mabogunje, said the upgrading of the hospital which would be highly subsidized was as a result of tax payment and called for compliance.

The JTB meeting continues on Tuesday with presentation of reports and deliberation on tax matters as well as a gala night at Civic Centre, Ozumba Mbadiwe Street, Victoria Island, to send forth some members and honour others for long service at the board.

Direct primary mode right way to go – Abba Moro

The Senator representing Benue South Senatorial District, Comrade Patrick Abba Moro, has said that the amendment of the Electoral Act by the National Assembly to make direct primary mode mandatory for political parties in choosing candidates for elections was a step in the right direction.

Speaking in an interview, Moro, a one-time Interior Minister, wondered why anyone who means well for the advancement of democracy in the country would be opposed to the adoption of a direct primary system, which gives power to the people and a sense of belonging to the entire members of a political party.

The lawmaker, a staunch member of Peoples Democratic Party (PDP), said the indirect primary method, where a few persons decide who becomes the candidate of a political party without consideration for the views of the generality of the membership has resulted in the bastardization and debasement of democratic values in Nigeria.

“Quite frankly I support direct primaries because I think that is the best and right way to go now in this country. Our democracy has been bastardized by the delegate system (indirect primary mode) which has become a cesspool of corruption that democracy is on sale. People now ask for as much as N500, 000 per delegate. People now propose to give to delegates as much as one million naira per delegate to buy their votes. This is certainly a classical situation of democracy on sale which is unacceptable.

“In the beginning of our present democratic dispensation it was option A4. It was direct primaries in which rather than narrowing down the electors to a few number of delegates, a sizeable number of registered party members are allowed to choose their leaders. It was smooth. It was hitchfree,” Moro explained.

He added: “People express fears of the cost of direct primaries, and I said that it is self-serving for anybody to input high cost to direct primaries and scaring the government into believing that it would amount to huge cost on the part of government. Government doesn’t conduct primaries for political parties. Political parties conduct primaries but they don’t bear the cost of primaries. Of course yes, they pay officials to go conduct primaries. But candidates who aspire to political offices are responsible for persuading and inducing delegates to primaries whether direct or indirect to vote for them. The government doesn’t bear the cost.

“INEC has been supervising elections even from the level of delegates. They have been supervising. INEC has been observing. There are INEC officials in all the local governments. So, it’s not going to be new deployment of INEC to local governments. INEC employs adhoc staff to conduct elections. In any case, if that is the price that we have to pay for deepening democracy, if that is the price that we have to pay for ensuring transparency in the selection process of our leaders to make the people more relevant, so be it!

“For instance, my political party PDP has a slogan of power to the people. How do you justify that slogan other than asking your members to select their own leaders? If we have in the past been unable to properly manage our selection process, and it becomes necessary and imperative that we must resort to direct primary to allow people to have a say in who leads them, so be it!

“Like I said, the current amended electoral bill has very many fantastic provisions. If you look at the whole gamut of the reforms that have been introduced into the current Electoral Act Amendment Bill, it would be very, very unpatriotic of anybody to urge the president not to sign it into law. It would be like throwing the baby out with the bathwater.”

LAGOS STATE GOVERNMENT

OFFICE OF THE CHIEF PRESS SECRETARY TO THE GOVERNOR

PRESS RELEASE

SANWO-OLU COMMISSIONS NETWORK OF THREE ROADS IN VICTORIA ISLAND TO IMPROVE TRAFFIC IN ETI-OSA

…‘It’s Another Promise Delivered’ – Governor

A major traffic problem has been solved by Governor Babajide Sanwo-Olu in Victoria Island, with the reconstruction of a network of three interconnected roads in the Central Business District (CBD) of Eti-Osa axis of Lagos State.

The Governor, on Monday, commissioned and handed over the newly reconstructed Adeola Hopewell Street, Idowu Taylor Street and AFRIBANK-Churchgate Road, all within the commercial vicinity of Iru-Victoria Island Local Council Development Area (LCDA).

The road projects were delivered under the urban infrastructure renewal programme of the Sanwo-Olu administration, which seeks to improve vehicular mobility within and around commercial districts in the State.

Prior to their upgrade, commuters groaned in pain while traversing the axis, as the three roads were impassable due to perennial flooding occasioned by low line drainage. This resulted in heavy traffic and reduced commercial activities.

Last year February, the Governor awarded the full reconstruction of the roads and drainage channels in the area, bringing a new lease to residents and businesses.

Sanwo-Olu said the completion of the roads validated his faith in his campaign pledge to improve the quality of life of the residents and engender socio-economic growth through delivery of requisite infrastructure.

He said: “As a responsive Government that is committed to fulfilling our electoral promises, we took the necessary decision to address and reverse the issue of incessant flooding and all its consequences in this area. Failure of some drainages and water channels in Victoria Island has consistently impeded the free flow of traffic, extending commuting time, causing damage to vehicles and low patronage for businesses.

“In February 2020, our administration awarded the contract for the reconstruction of the three roads and their upgrade, taking cognizance of the need to improve the drainage network, as well as the need to provide good connectivity with other roads in the vicinity. Today’s commissioning fulfils our promise and clearly demonstrates our audacious reforms in critical sectors of our economy, in line with our T.H.E.M.E.S Agenda.”

Sanwo-Olu noted that the major focus of his administration’s “Greater Lagos” vision was the prioritisation of urban renewal and the development of road infrastructure to enhance the collective well-being of the residents.

He said his Government adopted an all-inclusive and people-centered approach in the delivery of the capital projects, covering rural and urban communities in order not to leave out any part of the State.

The three rehabilitated roads, Sanwo-Olu said, form a ring-like pattern that will smoothly discharge traffic into Sanusi Fafunwa Street and connects back to Adeyemo Alakija Street.

He said: “I am confident that these newly completed roads will significantly reduce travel time, improve inter-connectivity with other roads within the vicinity and further boost business and investment opportunities in this area. The positive effects of this infrastructural upgrade will no doubt be felt well beyond Victoria Island.

“We seek road users’ continued support to ensure that these roads, upgraded with our commonwealth, are judiciously used and maintained. Anyone whose action may compromise the integrity of these roads and undermine their durability must be reported to the authorities. It is our collective responsibility to protect public infrastructure; doing this will free up government resources to do even more.”

Special Adviser to the Governor on Works and Infrastructure, Engr. Aramide Adeyoye, noted that the Government maintained high standards and quality assurance in the course of the projects, noting that the roads would serve their purpose throughout their design life.

She added that other accompanying benefits of the reconstruction included reduction in cost of maintenance of vehicles, enhanced property value and improved socio-economic activities.

“This event serves as Phase 2 of the Urban Regeneration programme of the Sanwo-Olu administration for Eti Osa axis. Six months ago, four roads were commissioned in Ikoyi under the infrastructure renewal scheme. Four roads in Ikeja GRA are presently at advanced stages of completion and they will be commissioned soon,” Adeyoye said.

Appreciating the Governor’s gesture on behalf of the residents, Victoria Island-Ikoyi Residents Association (VERA) chairperson, Mrs. Wonu Folami, described the state of the roads as “highly deplorable” before the reconstruction, stressing that some persons lost their means of livelihood because of the bad state of the roads.

She said: We had terrible experiences for many years on these roads, which are located in the areas where major commercial activities take place. With their rehabilitation by Sanwo-Olu, residents can now heave a sigh of relief and businesses that have suffered can now come back.”

Mrs. Folami expressed the association’s readiness to partner with the State Government on the maintenance of the roads and their ancillary facilities.

SIGNED

GBOYEGA AKOSILE

CHIEF PRESS SECRETARY

DECEMBER 13, 2021

Press Statement

I’ll Not Celebrate My Birthday This Year In Respect Of My Fallen Traditional Rulers – Obuah

In honour of the two eminent traditional rulers of Ogbaland, late His Eminence Sir Dr. Chukwumela Nnam Obi II, Oba (Eze Ogba) of Ogbland and HRM, King Professor Anele Uzondu Wokoma, Eze Egi III of Ogbaland who passed on this year, the immediate past state chairman of the Peoples Democratic Party, PDP and currently the Sole Administrator, Rivers State Waste Management Agency, RIWAMA, Bro Felix Obuah says he will not observe his birthday anniversary for this year which ought to be on Thursday, December 16, 2021.

According to Bro Felix Obuah, the Ikemba of Idemili, Anambra State, “I consider it disrespectful to be celebrating when the whole Ogbaland are still mourning the demise of the two great monarchs who joined their ancestors in March and August this year respectively.

“No sacrifice made to honour the two royal fathers for their immense contributions to the peace and well-being of our people will be too much, hence the reason for my action.

“However, I welcome prayers of good health and long life as well as any birthday gifts from friends and well-wishers but will appreciate it if such gifts could be monetized and sent to me”.

“While you bear with me and send your monetary gifts, I pray the good Lord to also meet you at the point of your own needs”.

Jerry Needam

Special Adviser on Media and Publicity to

Bro. Felix Obuah, Sole Administrator,

Rivers State Waste Management Agency (RIWAMA).

Monday, December 13, 2021

LAGOS STATE GOVERNMENT

OFFICE OF THE CHIEF PRESS SECRETARY TO THE GOVERNOR

PRESS RELEASE

SANWO-OLU URGES JOINT TAX BOARD TO EXPAND FOCUS BEYOND PERSONAL INCOME TAX

•LIRS Boss tasks board on effective delivery for overall development of Nigeria

Lagos State Governor, Mr. Babajide Sanwo-Olu, has called on members of the Joint Tax Board, the apex body for all tax authorities in Nigeria, to expand its focus beyond Personal Income Tax to other tax areas.

Speaking at the opening ceremony of the 149th meeting of the Joint Tax Board (JTB), held at Eko Hotels and Suites, Victoria Island, Sanwo-Olu said members of the JTB should look towards harmonising the interpretations of the various tax laws to achieve true federalism.

Governor Sanwo-Olu, who was represented by Lagos State Commissioner for Finance, Dr. Rabiu Olowo, also stressed the need for the yearly enactment of the Finance Act to align it with current economic realities.

The Governor said the critical role that members of JTB play individually and collectively in the fulfillment of the social contract that underpins democratic governance is as important as the existence of the country itself.

He said: “I implore the Joint Tax Board (JTB) to expand its focus beyond Personal Income Tax, to other tax types. While I acknowledge that some of the extant legal or constitutional provisions are not within the purview of the JTB to review or amend, let me say that it is very crucial that your (JTB) unwavering voice is heard in championing the process for change.

“You are one of the most important stakeholders on this journey towards a truly fair, equitable and efficient national revenue collection system.

“As part of this retreat, therefore, I urge you to deliberate and come up with practical solutions on critical revenue issues and fiscal federalism, especially as they relate to Stamp Duties, the regulation of lotteries, Federal/State tax jurisdiction, and the matter of Value Added Tax, which I am aware, is currently subjudice.

“One step in the right direction for the Country, which must be highlighted, is the yearly enactment of the Finance Act. It is aimed at reviewing and updating all existing financial/fiscal legislations of the Federal Government and aligning them with current economic realities and global best practices.

“It is my hope and expectation that the Finance Act has come to stay and that it will progressively make a considerable positive impact on the state of our national and sub-national finances, and the fiscal relations between the various tiers of government.”

Governor Sanwo-Olu also disclosed that Lagos Inland Revenue Service (LIRS) since 1999 has undergone the most extensive tax administration reforms of any sub-national government in Nigeria, noting that “Lagos State has grown its Internal General Revenue (IGR) from N600 million monthly in 1999 to over N45 billion monthly as of today, an astounding increase of 7,400 percent.”

He said: “Lagos is by far the largest contributor to national non-oil revenues, by way of corporate income taxes, VAT (almost half of the vatable transactions take place in Lagos State), customs duties, port charges, and so on. This is to be expected from three of the sub-national entity that is the most populous in the country and is also the biggest commercial hub.

“However, in the subsequent re-distribution of resources, we do not see any reflection of the contribution of Lagos State. Our share in this redistribution fails to take into account the demographic and infrastructural burdens and pressures that accompany being the economic nerve center of the nation.

“This state of affairs is what compelled the State, under the visionary leadership of Asiwaju Bola Ahmed Tinubu, to commence a transformational reform of its internal revenue process, within the ambit of the law.”

In his remarks, the Chairman of the JTB, Mr. Muhammed Nami Mamman, who was represented by the Coordinating Director of the Federal Inland Revenue Service, Mr. Mohammed Abubakar, said the theme of the meeting, “Leveraging Technology for Effective Administration of Stamp Duties and Road Taxes in Nigeria” was carefully chosen to explore innovative ways of administering the two critical tax types in the Country.

Speaking earlier, the Chairman of the Lagos State Internal Revenue Service (LIRS), Mr. Ayodele Subair, in his welcome address, harped on the need for the board to continue to carry out its duties effectively for the overall development of the country as taxation remains the main source of revenue for the government.

“A lot more financial resources are required to enable us to procure and maintain the long-overdue uninterrupted power and water supply, better and quality education, improved security of life and property, better roads and drainage networks and other basic amenities the citizens yearn for,” he said.

SIGNED

GBOYEGA AKOSILE

CHIEF PRESS SECRETARY

DECEMBER 13, 2021

LAGOS STATE GOVERNMENT

OFFICE OF THE CHIEF PRESS SECRETARY TO THE GOVERNOR

PRESS RELEASE

SANWO-OLU KICKS OFF LAGOS FOOD FESTIVAL

The maiden Lagos State Food Festival kicked off on Sunday with an unfamiliar chef – Governor Babajide Sanwo-Olu.

Clad in a black apron, the Governor set up the symbolic outdoor kitchen and prepared stir fried rice, the official meal of the occasion, in the full glare of the public.

Sanwo-Olu assisted the guest chef, White Money – winner of 2021 Big Brother Naija – to deliver the Lagos delicacy made from onion, smoked fish, mixed granules of bonga fish and crayfish, pepper and seasoning.

The audience roared in excitement, as the Governor and White Money served the hot meal to sensory panelists who confirmed the quality of the cuisine.

This marked the beginning of the event organised by the Ministry of Agriculture at the Justice Muri Okunola Park in Victoria Island. The initiative, formerly known as Seafood Festival, is a yearly event hosted by the State Government to exhibit local delicacies and agricultural commodities produced in Lagos for international market.

After declaring the event open, Sanwo-Olu moved round to have one-on-one engagements with tradesmen who brought their products for exhibition.

There were more than 300 different foods, drinks, aqua products and agricultural commodities exhibited at the event. There was also a variety of games for children on the field.

The Governor encouraged the sellers to take advantage of the Lagos State Employment Trust Fund (LSETF) to grow their businesses, noting that part of the event’s objectives was to boost the entrepreneurial spirit of the residents.

Sanwo-Olu said the administration remained committed to promoting growth of Micro Small and Medium Enterprises (MSMEs), adding that his Government continually carried out reforms to ensure ease of doing business in Lagos.

SIGNED

GBOYEGA AKOSILE

CHIEF PRESS SECRETARY

DECEMBER 12, 2021

PRESS RELEASE

SANWO-OLU PLEDGES MORE INTERVE

NTION TO SUPPORT FIGHT AGAINST SGBV

…As First Lady Presents Six Vehicles To Judiciary, MDAs, NGOs

Lagos State Governor, Mr. Babajide Sanwo-Olu at the weekend assured that there would be more intervention by the state government to support the fight against all forms of Sexual and Gender-Based Violence (SGBV) in the state.

The Governor spoke at Lagos House, Alausa, Ikeja during the presentation of six vehicles by the First Lady, Dr. Ibijoke Sanwo-Olu to critical agencies of government and Non-Governmental Organizations (NGOs) to facilitate a prompt, efficient, and effective response to the menace of rape, defilement, domestic violence, child abuse, and associated crimes.

The beneficiaries are Family Court, Lagos State Judiciary; Directorate of Family Health and Nutrition, Lagos State Ministry of Health; Guidance and Counseling Unit, Lagos State Ministry of Education; Women’s Rights and Health Project (WRAHP); Auntlanda Bethel Foundation; and SGBV Response Team, Office of the First Lady.

The vehicle presentation was the highpoint of the commemoration of the global 16 days of activism against SGBV, as spearheaded in the state by the Office of the First Lady.

Mr. Governor commended all the stakeholders, partners, and donors, saying the feat clearly confirmed that a lot could be achieved working together.

“I am happy with all of our partners, the NGOs, the various offices, and the judiciary that are doing great things. What this means is that just keep doing what you are doing, somebody somewhere is watching, and at the appropriate time, you will be encouraged and we all need to encourage ourselves. I am sure next year, others who are also raising up the bar and they are best in class at what they do will be encouraged.

“On behalf of the government and people of Lagos State, I want to thank all of you for what you are doing. I want to thank my wife, the First Lady; the wife of my brother the Deputy Governor; everybody in the Office of First Lady, and all stakeholders that have put this together.

“What this means is that next year, we should do a lot better, we should have a lot more partners, we should have a lot more intervention, we should indeed be able to say that indeed these are the things we have done and we are on the right path,” he said.

Earlier, the First Lady said a lot had been done to scale up the fight against SGBV, saying it was gratifying that vehicles were being presented to further ramp up the capacities of relevant agencies to deal decisively with the menace.

“A lot has been done with regards to the 16 days of activism. We had our Community Sensitization on the 29^th of November, followed by School Sensitization. We also took part in the Interfaith parley where we had the opportunity to talk to religious leaders (Christian and Muslim).

“In between, I went to Abuja to attend the Second Annual Conference of Nigeria Governors’ Wives Forum against Sexual and Gender-Based Violence, and we also had the opportunity of meeting the National Union of Road Transport Workers to sensitize them on the dangers and position of the law on SGBV.

“We are presenting six vehicles today making a total of Nine vehicles we have presented to support the fight against SGBV. Recalled that we had earlier presented three to the Domestic and Sexual Violence Response Team (DSVRT) of the Ministry of Justice; Child Protection Unit of the Ministry of Youth and Social Development; and the Gender Unit of the State Criminal Investigation and Intelligence Department (SCIID), Panti, Lagos. For us, we will not relent in our fight against the SGBV,” she said.

Besides the vehicles, rape kits were also donated to the Ministry of Health to help in the treatment of rape survivors.

Speaking on behalf of the beneficiaries, Permanent Secretary, Lagos State Ministry of Health, Dr. Olusegun Ogboye commended the First Lady for her passion and genuine commitment and consistency displayed to the cause against SGBV, assuring that the vehicles and the rape kits would be deployed for the intended purpose.

The donors are the Lagos State Security Trust Fund (LSSTF) and Lagos State Gaming and Lotteries Authority, while the Lagos State Signage and Advertisement Agency (LASAA) supported the 16 days of activism campaign with adverts on billboards and electronic media.

SIGNED

OLUBUKONLA NWONAH

ASSIST DIRECTOR, PUBLIC AFFAIRS

OFFICE OF LAGOS STATE FIRST LADY     

DECEMBER 12, 2021

PRESS STATEMENT

SPN REJECTS PLANNED HIKE IN FUEL PRICE AND ELECTRICITY TARIFF

CALLS ON LABOUR TO BEGIN MASS MOBILISATION TO DEFEAT NEO-LIBERAL ATTACKS

The Socialist Party of Nigeria (SPN) rejects the planned fuel price hike by the Buhari-led federal government. The planned fuel price hike is based on advice by the World Bank which in its latest “Nigeria Development Update (NDU) titled “Time for Business Unusual” asked Nigeria to remove fuel subsidy. According to the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Malam Mele Kyari, petrol price could be increased to N340 per litre from February 2022. This increment will inevitably increase the cost of living and further worsen the living conditions of the vast majority. Most Nigerians earn poverty wage or low incomes while the N30,000 minimum wage, when paid, has been largely eroded by inflation and the ever-rising cost of living. We are also opposed to the planned hike in electricity tariff.

Federal Government claims that there is a subsidy on the fuel price and wants to do away with it. Capitalist government after government has always stressed the need for subsidy removal because of the corruption associated with subsidy and also because, according to them, it only benefits the rich and middle classes while the poor are left out. However, the real motivation for subsidy removal however is the desire to increase the profit of big oil companies and conniving members of the bourgeois ruling elite and limiting state expenditure no matter what effect that has on the majority of Nigerians. But it is not an accident that the subsidy removal is planned for next year to coincide with when Dangote’s crude oil refinery and the petrochemical plant is to become operational in order to give him maximum latitude to sell his refined fuel products at international rates to domestic consumers.

While we do not deny the fact that there is massive corruption associated with fuel subsidy, what cannot also be glossed over is the fact that had there not been subsidy over the past two decades, perhaps the price of fuel products would have gone up to nearly N1000 per litre considering the volatility of crude oil price in the world market over the years. For us, therefore, the best way to tackle the massive corruption associated with is by a crash public works programme to make existing public refineries function at an optimal level and also build new ones in order to end importation, and put them all under democratic control of the working people.

As a major oil producer, there is no justification whatsoever to import petroleum products and force Nigerians to buy exorbitantly when as a country we can publicly and effectively refine and distribute these petroleum products at affordable prices.

The reason for the lack of functional public refineries in Nigeria is the implementation of capitalist neo-liberal agenda of privatization, deregulation and commercialization by the successive governments especially since the introduction of SAP in 1986. So there is no end in sight for exploitation and robbery of our collective resources by a rich few at the expense of the needs of the vast majority.

Now the Buhari-led government through the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed announced the government’s plan to disburse N5,000 to 40 million poor Nigerians. This interventionist palliative measure is not new, it is a ruse packaged to deceive Nigerians. We, therefore, call on the working masses not to be deceived; all anti-poor policies including the planned further hike in fuel price and electricity tariff must be resisted. The masses should also demand and fight for free and quality education and health care, decent jobs, decent mass housing and unemployment benefits while also defending democratic rights and opposing state repression.

Labour leadership have rejected the planned price increase and have stated that it will mobilize against it. SPN welcomes this reaction by labour leaders but we hope it is not another hot air given the past horrid experiences especially the last minute calling off of a planned general strike and mass protest in September 2020. Not only was the strike called off but the labour leaders endorsed deregulation.

To prevent another act of betrayal, we call on workers and genuine trade union activists to begin agitation and campaigns within workplaces and unions for a general strike and mass protest against anti-poor policies of the Buhari government and a call on the labour leaders who are not ready for the struggle to resign and make way for those who are prepared for serious action.

So, we challenge labour leaders to be prepared to lead a more determined and well-mobilized resistance against this planned fuel price hike and all anti-poor capitalist attacks. Labour leaders must end their characteristic weak response which always ends in negotiating a reduction instead of reversal of an anti-people policy. We call on them to end their strategic partnership with the self-serving bourgeois ruling elite and withdraw their support for privatization and deregulation. It is fallacious for labour leaders to support deregulation provided there is adequate local production. This is because in actual fact deregulation in any form defends the interest of a privileged few against the vast majority. For instance, cement is produced locally by Dangote but the price has skyrocketed in the last 2 years. Similarly, Nigeria Liquefied Natural Gas NLNG has the capacity to produce and supply the domestic need of cooking gas but an average Nigerian cannot afford gas as 12.5kg cylinder of gas which presently sells for about N9, 000. The only way out is the nationalization (public ownership) of the oil and gas sector alongside other commanding heights of the economy and placed under democratic management and control of workers and consumers.

By and large, the Socialist Party of Nigeria (SPN) calls on the leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to begin mass mobilization against the planned hike in the price of petrol and electricity tariff. The mobilization should entail mass meetings in communities and workplaces, sensitization rallies, press conferences, production and circulation of mobilization materials (flyers, posters etc.,) as a means of resisting the attacks and preparing the working masses for a long-drawn struggle. At the same time, we call on activists to take initiatives to build support for action and to challenge any attempt by leaders to retreat or accept a rotten compromise.

Alongside this, the trade union movement must vigorously pursue a political alternative and build a pan Nigeria mass working people’s political party armed with Socialist policies to challenge the capitalist political parties for power and rescue Nigeria from this ever-growing socio-economic and political crisis of decadent capitalism.

SIGNED

Abiodun Bamigboye                                                             Chinedu Bosah

Acting National Chairperson                                                  National Secretary