• Lawmakers urge increased refining capacity and economic reforms
• Further fuel price hikes may reverse economic gains, World Bank warns
• Reps push for 2025 Budget Proposal submission by Tinubu
'Seun Ibukun-Oni, Abuja
DAILY COURIER - The House of Representatives has called for the immediate reversal of the recent hike in the prices of petrol and cooking gas, citing the adverse impact on Nigerians' livelihoods. This urgent call came during a motion led by Deputy Minority Leader Aliyu Madaki and co-sponsored by 111 members of the House, who expressed deep concern about the rising cost of living and its threat to job security across the country.
The lawmakers directed the Nigerian National Petroleum Company Limited (NNPCL) and the Ministry of Petroleum Resources to urgently address the situation by boosting local refining capacity. They also called on the Central Bank of Nigeria (CBN) to implement economic measures to cushion the inflationary impact of the fuel price increase on the Nigerian economy.
The House's action follows growing public outcry over the surge in petrol prices, which skyrocketed from N175 per litre to over N1,000 in 2023, following President Bola Tinubu's removal of fuel subsidies. Cooking gas prices have similarly surged, with 1 kg of cooking gas now costing around N1,500. The Green Chamber warned that the continuous rise in fuel prices is worsening the hardship for millions of Nigerians already grappling with inflation.
World Bank Issues Warning on Fuel Prices
In a related development, the World Bank has cautioned that further increases in gasoline prices may reverse the disinflationary trend Nigeria has been experiencing since the subsidy removal. According to the October edition of its *Africa’s Pulse* report, the World Bank stated that the inflationary effects of a weakened naira and the subsidy removal were gradually subsiding. However, the recent hike of 40-45% in fuel prices in September 2024 could undo these gains and deepen the economic challenges.
The report underscores the delicate balance the government must strike in managing fiscal policies, with potential long-term effects on the nation's economic recovery.
Reps Demand Swift Presentation of 2025 Budget Proposal
In another motion, the House of Representatives has urged President Tinubu to present the 2025 Budget Proposal without further delay. With just over two months left in the current fiscal year, the lawmakers pointed to a violation of the Fiscal Responsibility Act by the executive branch, which mandates that the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) be submitted at least four months before the next financial year.
The House expressed concern over the limited time available to thoroughly scrutinize and pass the 2025 Budget Estimates. The motion, moved by Clement Jimbo, called on the president to act swiftly to avoid further delays in budget deliberations. The matter has been referred to the Committee on National Planning for further action.
President’s Leave Sparks Debate
Meanwhile, President Tinubu’s recent two-week leave to the United Kingdom, which began on October 2, 2024, has sparked public debate, especially in light of the pressing economic challenges at home. Many are questioning the timing of the leave as the nation faces economic difficulties and looming legislative deadlines for the 2025 budget.
As Nigeria grapples with high inflation, fuel price hikes, and economic instability, both the executive and legislative branches face mounting pressure to take decisive action to restore economic stability and improve living conditions for Nigerians.