In this chance interview with Governor Rotimi Amaechi of Rivers State, he tackles the twin issue of minimum wage and the big money paid out annually in the name of petroleum products’ subsidy. According to Gov. Amaechi, Nigerians should be forward looking about development and concludes that for as long as billions of naira is wasted on subsidy that a few Nigerians pocket, industrialisation and development would continue to elude the nation.
He also speaks on his chairmanship of the Nigeria Governors’ Forum, the sports festival that kicks off today and how far he has taken up the challenge of developing Rivers State.
Excerpts:

By Jide Ajani, & Dapo Akinrefon

The argument of state governors on the minimum wage is such that it is being predicated on the ability to have more money from the removal of subsidy on petroleum products and then pay the new wage. Some people frown at that….

No, the governors have not said that it is the money for the subsidy that is to be saved and shared that would be used for the payment of the minimum wage.  That is not true.

What we are saying are different.  First, the issue of subsidy is such that it only enriches a few individuals because when you look at it critically, how many Nigerians are enjoying this so- called subsidy that is being talked about? What is the correlation between the subsidy that is being paid and the lives of Nigerians?  How has it affected the lives of Nigerians positively? Do you know that last year alone, over N1 trillion was expended on subsidy?

The argument of the state governors is that resources should be saved wisely and then allowed to go down to touch the lives of the average Nigerian.

Second, we are not saying give us the money from the subsidy that has been saved to pay salaries.

Our argument and my own argument is that when these funds are freed, Nigerians stand to benefit more than just a handful of brief-case-carrying fuel importers who get the subsidy.  Some even use the subsidy money to do their business – that is the truth.

When you talk like this, the impression is that once the subsidy is removed, everything would become wonderful, yet we have heard…

You have heard it before! That is what you were going to say. But what I am telling you is simple.  Look at Rivers State, we have two licences to set up refineries, yet, we cannot set the refineries up.

Why?

Because this issue of subsidy makes nonsense of the matter! If we set up refineries and the Federal Government continues to fix the prices of petroleum products, it would not be profitable for anybody. Look at what is happening in the GSM sector.  I agree, there would be initial discomforts but in no time, Nigerians would be the better for it. Once the deregulation is complete, Nigerians would have the choice to make and if the price is not right in one place, they can simply move to the next station and buy, just as it is happening with all the GSM service providers now.

We have to agree to free that money that is going into a few pockets for 150 million Nigerians.  Do you know what N1 trillion would do to the economy?

But that was how governors said the excess crude money should be shared, yet most Nigerians would argue that there was not much to show for it?  In this case, what would the people be given in return because the pains would be much? Are we looking at a possible set of palliative measures to cushion the effect when the subsidy is removed?

Read Amaechi’s response  and the full interview in tomorrow’s edition of Sunday Vanguard.