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President Muhammadu Buhari has, on Wednesday, November 4, scrapped the Subsidy Reinvestment and Empowerment Programme (SURE-P).
The president also ordered the Presidential Committee and workers of the agency to close shop.
President Goodluck Ebele Jonathan inaugurated the SURE-P Committee on the 13th of February 2012 under the leadership of Dr. Christopher Kolade CON to ensure the proper management of the funds that would accrue to the Federal Government from the partial withdrawal of subsidy,
Elombah.com gathered that the President’s order was delivered to the SURE-P Committee through a letter from the Office of the Secretary to the Government of the Federation.
President Buhari has also, as expected ordered a probe into the activities, funding and expenditure of the agency.
The President, in the letter, also directed the panel to wind down the operations of SURE-P on or before November 30, 2015 and submit a comprehensive report of its activities to The Presidency.
Ordering the winding down of the programme, President Muhammadu Buhari directed the panel charged with the task to complete winding down the operations of SURE-P to make sure they adhere to the stated date.
The Subsidy Reinvestment and Empowerment Programme was designed along the line of the transformation agenda of President Jonathan, the life span of which is 2012 – 2015.
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In January, 2012, the decision to remove the subsidy on Premium Motor Spirit (PMS) was announced by Jonathan, with the following as the official explanation for instituting the policy.
- The subsidy regime in which fixed prices are maintained irrespective of market realities has resulted in a huge unsustainable subsidy burden.
- Fuel subsidies do not reach the intended beneficiaries. Subsidy level is directly correlated with household income, as richer households consume larger quantities of petroleum products. Consequently, the subsidy benefits mostly the rich.
- Subsidy administration is beset with inefficiencies, leakages and corruption.
- Subsidy has resulted in the diversion of scarce public resources away from investment in critical infrastructure, while putting pressure on government resources.
- Subsidy has discouraged competition and stifled private investment in the downstream sector. Due to lack of deregulation, investors have shied away from investment in the development of refineries, petrochemicals, fertilizer plants, etc. It is important to note that since the year 2000, government has issued 20 licenses for new refineries, none of which has resulted in the construction of new refineries.
- The deregulation of the downstream sector of the petroleum industry will lead to rapid private sector investment in refineries and petrochemicals, which will generate millions of jobs and lead to increased prosperity for our people.
- Huge price disparity has encouraged smuggling of petroleum products across the borders to neighboring countries, where prices are much higher. Nigeria therefore ends up subsidizing consumption of petroleum products in neighboring countries
Jonathan was forced to partially restore subsidy after several days of protest.
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