NATIONAL BROADCAST BY PRESIDENT GOODLUCK EBELE JONATHAN, GCFR, ON THE DEREGULATION OF THE DOWNSTREAM PETROLEUM SECTOR SATURDAY, JANUARY 7, 2012

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Dear Compatriots,

A week ago, I had cause to address Nigerians on the security challenges we are facing in parts of the country, which necessitated the declaration of a state of emergency in 15 Local Government Areas in four states of the Federation. That course of action attracted widespread support and a demonstration of understanding. With that declaration, government had again signaled its intention to combat terrorism with renewed vigour and to assure every Nigerian of safety.

The support that we have received in the fight against terrorism from concerned Nigerians at home and abroad has been remarkable. We believe that it is with such continued support that progress can be made on national issues. Let me express my heartfelt appreciation to everyone who has expressed a commitment to support us as we strive to improve on the country’s security situation, and build a stronger foundation for the future. The recent mindless acts of violence in Gombe, Potiskum, Jimeta-Yola and Mubi are unfortunate. I urge all Nigerians to eschew bitterness and acrimony and live together in harmony and peace. Wherever there is any threat to public peace, our security agencies will enforce the law, without fear or favour.

This evening, I address you, again, with much concern over an issue that borders on the national economy, the oil industry and national progress. As part of our efforts to transform the economy and guarantee prosperity for all Nigerians, Government, a few days ago, announced further deregulation of the downstream petroleum sector. The immediate effect of this has been the removal of the subsidy on petrol.

Since the announcement, there have been mixed reactions to the policy. Let me seize this opportunity to assure all Nigerians that I feel the pain that you all feel. I personally feel pained to see the sharp increase in transport fares and the prices of goods and services. I share the anguish of all persons who had travelled out of their stations, who had to pay more on the return leg of their journeys.

If I were not here to lead the process of national renewal, if I were in your shoes at this moment, I probably would have reacted in the same manner as some of our compatriots, or hold the same critical views about government. But I need to use this opportunity as your President to address Nigerians on the realities on the ground, and why we chose to act as we did. I know that these are not easy times. But tough choices have to be made to safeguard the economy and our collective survival as a nation.

My fellow Nigerians, the truth is that we are all faced with two basic choices with regard to the management of the downstream petroleum sector: either we deregulate and survive economically, or we continue with a subsidy regime that will continue to undermine our economy and potential for growth, and face serious consequences.

As you all know, the subject of deregulation is not new, we have been grappling with it for more than two decades. Previous administrations tinkered with the pump price of petroleum products, and were unable to effect complete deregulation of the downstream sector. This approach has not worked. If it did, we would not be here talking about deregulation today. I understand fully well that deregulation is not a magic formula that will address every economic challenge, but it provides a good entry point for transforming the economy, and for ensuring transparency and competitiveness in the oil industry, which is the mainstay of our economy.

As a President, elected and supported by ordinary Nigerians, and the vast majority of our people, I have a duty to bring up policies and programmes that will grow the economy and bring about greater benefits for the people. Let me assure you that as your President, I have no intention to inflict pain on Nigerians.

The deregulation of the petroleum sector is a necessary step that we had to take. Should we continue to do things the same way, and face more serious economic challenges? Or deregulate, endure the initial discomfort and reap better benefits later? I want to assure every Nigerian that whatever pain you may feel at the moment, will be temporary.

The interest of the ordinary people of this country will always remain topmost in my priorities as a leader. I remain passionately committed to achieving significant and enduring improvements in our economy that will lead to sustained improvement in the lives of our people.

I am determined to leave behind a better Nigeria, that we all can be proud of. To do so, I must make sure that we have the resources and the means to grow our economy to be resilient, and to sustain improved livelihood for our people. We must act in the public interest, no matter how tough, for the pains of today cannot be compared to the benefits of tomorrow. On assumption of office as President, I swore to an oath to always act in the best interest of the people. I remain faithful to that undertaking.

To save Nigeria, we must all be prepared to make sacrifices. On the part of Government, we are taking several measures aimed at cutting the size and cost of governance, including on-going and continuous effort to reduce the size of our recurrent expenditure and increase capital spending. In this regard, I have directed that overseas travels by all political office holders, including the President, should be reduced to the barest minimum. The size of delegations on foreign trips will also be drastically reduced; only trips that are absolutely necessary will be approved.

For the year 2012, the basic salaries of all political office holders in the Executive arm of government will be reduced by 25%. Government is also currently reviewing the number of committees, commissions and parastatals with overlapping responsibilities. The Report on this will be submitted shortly and the recommendations will be promptly implemented. In the meantime, all Ministries, Departments and Agencies must reduce their overhead expenses.

We are all greatly concerned about the issue of corruption. The deregulation policy is the strongest measure to tackle this challenge in the downstream sector. In addition, government is taking other steps to further sanitize the oil industry.

To ensure that the funds from petroleum subsidy removal are spent prudently on projects that will build a greater Nigeria, I have established a committee to oversee the implementation of the Subsidy Reinvestment and Empowerment Programme. I sincerely believe that the reinvestment of the petroleum subsidy funds, to ensure improvement in national infrastructure, power supply, transportation, irrigation and agriculture, education, healthcare, and other social services, is in the best interest of our people.

Fellow Nigerians, I know that the removal of the petroleum subsidy imposes an initial burden on our people, especially the rising cost of transportation. Government will be vigilant and act decisively to curb the excesses of those that want to exploit the current situation for selfish gains. I plead for the understanding of all Nigerians. I appeal to our youth not to allow mischief-makers to exploit present circumstances to mislead or incite them to disturb public peace.

To address the immediate challenges that have been identified, I have directed all Ministries, Departments and Agencies of government to embark immediately on all projects which have been designed to cushion the impact of the subsidy removal in the short, medium and long-term, as outlined in the Subsidy Reinvestment and Empowerment Programme Document.

Tomorrow, 8^th January, I will formally launch a robust mass transit intervention programme to bring down the cost of transportation across the country. The programme will be implemented in partnership with state and local governments, labour unions, transport owners, and banking institutions, and supported with the provision of funding at zero interest rate as well as import duty waiver on all needed parts for locally-made mass transit vehicles, which will create additional jobs in the economy.

We will keep these incentives in place for as long as it takes. I want to assure you that Government will not rest until we bring down the cost of transportation for our people. Let me thank the transporters’ associations that have agreed to reduce transport fares. I have directed the Minister of Labour and Productivity to work with these associations to come up with a sustainable plan to guarantee this within the shortest possible time.

In addition, I have ordered the mobilization of contractors for the full rehabilitation of the Port Harcourt –Maiduguri Railway Line and the completion of the Lagos-Kano Railway Line. I have also directed the immediate commencement of a Public Works programme that will engage the services of about 10, 000 youths in every state of the Federation and the Federal Capital Territory. This will create an additional 370, 000 jobs.

Government has taken these decisions in the best interest of our economy, so that we not only have benefits today, but to ensure that we bequeath even greater benefits to our children and grandchildren.

Let me assure Nigerians that every possible effort will be made to ensure that we march forward, with a collective resolve to build a Nigeria that can generate greater economic growth, create and sustain new jobs, and secure the future of our children.

This Administration will aggressively implement its programme to reposition and strengthen our economy, while paying adequate attention to the immediate needs of our citizens.

I assure you all that we will work towards achieving full domestic refining of petroleum products with the attendant benefits.

As I ask for the full understanding of all Nigerians, I also promise that I will keep my word.

Thank you. May God bless you; and may God bless the Federal Republic of Nigeria.

Goodluck Ebele Jonathan, GCFR

President

Federal Republic of Nigeria

January 7, 2012

Comments Page: 1 2 3 4 posted on 01-07-2012, 15:27:10 PM Papadonkee Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 Hmmm, at least he's listening. 2015!!! Labour, we go gree? posted on 01-07-2012, 15:33:59 PM Blissfully Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: Hmmm, at least he's listening. 2015!!! Labour, we go gree? Considering the fact that the legislators are having an emergency meeting tomorrow, this speech may be connected to that. So I will rather wait for the outcome of tomorrow's meeting. As per labour, i dont think this speech meets the conditions set by labour and other groups. Something is definitely going on........... time will reveal it posted on 01-07-2012, 15:39:34 PM Credoworld Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 II don't believe u, mr Jonathan....why launch on a Sunday? Why didn't u reflect d 25% basic cut in the budget...and how much is basic salary, wot of the bogus allowances? Y didn't u address us b4 d deregulation? I don't believe ur words....sorry mr Jonathan.....u can't brain wash me posted on 01-07-2012, 15:41:56 PM Nezie Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 Ehe.. If he had watered the minds of Nigerians to this level before he slammed subsidy removal on them …. “I have ordered the mobilization of contractors for the full rehabilitation of the Port Harcourt–Maiduguri Railway Line and the completion of the Lagos-Kano Railway Line.”----- President GEJ Sweet talk. But please ensure it does not end in ordering contractors, ensure that the job is thoroughly done. posted on 01-07-2012, 15:43:14 PM Igboamaeze Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 ----- Nice move but didn't go far enough. Additional measures will include: drastic reduction in the salaries and allowances of NASS members curbing corruption in high and low places especially in the NASS giving full effect to the Freedom of Information Act transperancy in management of public funds (good that the budgets including the 2012 Draft are now available online). Let the budget execution reports including names of contractors/suppliers/ their principal officers, type of job/supply, units/description of job/supply, amount per unit/total value, etc be made publicly available also reduction in convoy of government officials ( a minister must not ride in more than one car. No pilot no police and army convoy) 50% increase in the salary of civil servants scrapping of redundant and wasteful government agencies eg PPPRA, NNPC, DPR, PPMC, PEF, PTDF, etc, etc, judicial reforms genuine war against corruption. Let Lamorde go and bring in Tam David West, Femi Falana, Mohammadu Buhari (Igwe, here I go again!!), Balarabe Musa, Abubukar Umar or just about any other person who will trully fight corruption not nurture it Et, etc, etc, etc... posted on 01-07-2012, 15:46:39 PM Big-k Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: To save Nigeria, we must all be prepared to make sacrifices. On the part of Government, we are taking several measures aimed at cutting the size and cost of governance, including on-going and continuous effort to reduce the size of our recurrent expenditure and increase capital spending. In this regard, I have directed that overseas travels by all political office holders, including the President, should be reduced to the barest minimum. The size of delegations on foreign trips will also be drastically reduced; only trips that are absolutely necessary will be approved. This part (cutting the size and cost of governance) is where I went to directly and I'm unimpressed. We need details, not "several measures". lots of organizations should go, Mr President. posted on 01-07-2012, 15:47:34 PM Blissfully Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: Ehe.. If he had watered the minds of Nigerians to this level before he slammed subsidy removal on them …. “I have ordered the mobilization of contractors for the full rehabilitation of the Port Harcourt–Maiduguri Railway Line and the completion of the Lagos-Kano Railway Line.”----- President GEJ Sweet talk. But please ensure it does not end in ordering contractors, ensure that the job is thoroughly done. True these sound sweet . But somehow I sense and feel desperation. Tomorrow will begin to shed more light on and direction of these promises posted on 01-07-2012, 15:50:42 PM Blissfully Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: This part (cutting the size and cost of governance) is where I went to directly and I'm unimpressed. We need details, not \"several measures\". lots of organizations should go, Mr President. Big K , It is not just about the organizations (anyway there was a committee set up about two months ago to harmonize government departments). Dimeji Bankole's case has shown us so many things such that the budgets of these organizations pale to insignificance when placed side by side with such expenditures as " constituency allowance" . Such frivoulous expenses will surely continue posted on 01-07-2012, 16:01:19 PM Foxcatcher Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 The horse trading begins... posted on 01-07-2012, 16:12:53 PM Blissfully Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 Somebody is surely mis-advising Mr. President. The impression is created in this speech that the only sector negatively affected by the increased cost of fuel is transportation. That is not the only sector. Most Nigerians, especially those in the small and medium enterprises sector run their businesses using generators because Nepa is not working and may not work for sometime in spite of the reforms going on in the energy sector (at least no appreciable improvement can be experienced in the next one year), This is another source of increased prices and inflation. There are so many others. So it is not about transportation alone. Something is missing somewhere, With increase in the cost of production and inflation, there will be new demands for salary increases and the cycle goes on. Employers may also have to lay off more workers etc etc. Can we look at all the ramifications of the negative effect of this policy rather than getting fixated on transportation cost only posted on 01-07-2012, 16:32:26 PM Mekus Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 GEJ sounded like som1 that passionately believes in what he is doing, even if i disagree wit him on timin, all thins been equal I respect his determination and passion 4 what he believes to be a solution for our beta tmrw.. posted on 01-07-2012, 16:41:24 PM Bill Carson Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 Well packaged statement, GEJ ended up saying absolutely nothing. posted on 01-07-2012, 16:49:45 PM Lalakokofefe Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 This statement lacks specifics. At this point, specifics is what we need. LKF posted on 01-07-2012, 16:57:02 PM First-lady Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 I have fallen in love with Mr President Everything he said just melted my heart like sugar chai This man has a heart o why did it take him so long to say this I believe in you dear smooches! posted on 01-07-2012, 17:00:21 PM First-lady Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: Let me seize this opportunity to assure all Nigerians that I feel the pain that you all feel. I personally feel pained to see the sharp increase in transport fares and the prices of goods and services. I share the anguish of all persons who had travelled out of their stations, who had to pay more on the return leg of their journeys. If I were not here to lead the process of national renewal, if I were in your shoes at this moment, I probably would have reacted in the same manner as some of our compatriots, or hold the same critical views about government. But I need to use this opportunity as your President to address Nigerians on the realities on the ground, and why we chose to act as we did. I know that these are not easy times. But tough choices have to be made to safeguard the economy and our collective survival as a nation. almost like a loving husband pacifying an angry wife So romantic This is awesome! ewoooooooo Nna may your enemies live long to see what you will become Jonathan Jonathan Jonathan k'ayi g'eso ma o na ejeje ma o na ala ala Jonathan k'ayi g'eso meaning we shall follow Jonathan all da way I need to change signature sharp sharp posted on 01-07-2012, 17:04:45 PM Foxcatcher Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 NLC responds: posted on 01-07-2012, 17:08:23 PM Iamgod Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 Strike never start, desperation is already setting in. We need specifics boss. Which ministries are going and which are staying? What improvements should we expect in energy generation and distribution in the first, second through the fourth quarter of 2012 and what should we do if we see no results? Do you still intend to spend 1 billion naira for feeding you and Patience in 2012? Which roads will be fixed and when? Do you still intend to spend the amount which you initially budgeted for security on security? 25% pay cut in public officers wages is insufficient. It should be at least 60% Have you scrapped the PPRA? Wait first, I dey come.... posted on 01-07-2012, 17:10:02 PM Denker Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: I have fallen in love with Mr President Everything he said just melted my heart like sugar chai This man has a heart o why did it take him so long to say this I believe in you dear smooches! nne, fl, mind a lurking TIGER.....vivamus! posted on 01-07-2012, 17:18:51 PM First-lady Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: nne, fl, mind a lurking TIGER.....vivamus! actually e be like the man don enter NVS sef posted on 01-07-2012, 17:20:17 PM First-lady Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: Strike never start, desperation is already setting in. We need specifics boss. Which ministries are going and which are staying? What improvements should we expect in energy generation and distribution in the first, second through the fourth quarter of 2012 and what should we do if we see no results? Do you still intend to spend 1 billion naira for feeding you and Patience in 2012? Which roads will be fixed and when? Do you still intend to spend the amount which you initially budgeted for security on security? 25% pay cut in public officers wages is insufficient. It should be at least 60% Have you scrapped the PPRA? Wait first, I dey come.... You folks should allow the man na haba He is taking a step in the right direction,let him land first Una don already begin set WAEC question for am posted on 01-07-2012, 17:23:15 PM Iamgod Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 For the year 2012, the basic salaries of all political office holders in the Executive arm of government will be reduced by 25% Look at this clown. BASIC salaries..... GEJ you never ready talk anything. posted on 01-07-2012, 17:24:28 PM Iamgod Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: You folks should allow the man na haba He is taking a step in the right direction,let him land first Una don already begin set WAEC question for am Na the man choose carry fire for head. Nobody superglue in yansh put for Aso Rock posted on 01-07-2012, 17:27:18 PM Picato Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 GEJ, I see, considers us all fools. Substance-less speech. posted on 01-07-2012, 17:27:20 PM First-lady Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 @ I am god,for years citizens have talked of all these things i.e reduction of govt,salaries and spending. The man has admitted that those have to be done so obviously he is listening to us. Specifics will follow eventually I suppose Let's be patient. posted on 01-07-2012, 17:29:21 PM First-lady Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: GEJ, I see, considers us all fools. Substance-less speech. No he doesn't Remember how we all hammered on the size of his entourage at the Australia meeting Someone is definitely communicating these things to him Looks to me like he's listening to nu jah posted on 01-07-2012, 17:30:17 PM Bill Carson Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: For the year 2012, the basic salaries of all political office holders in the Executive arm of government will be reduced by 25% Look at this clown. BASIC salaries..... GEJ you never ready talk anything. YouBeBabaGod, Good observation……. how many civil servants even know how much their salary is? I’ll rather GEJ had said he will reduce just 10% of their estacode and leave them with their full salary. posted on 01-07-2012, 17:37:45 PM Iamgod Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: @ I am god,for years citizens have talked of all these things i.e reduction of govt,salaries and spending. The man has admitted that those have to be done so obviously he is listening to us. Specifics will follow eventually I suppose Let's be patient. No madam he is not listening at all.... Since he was so specific on the amount he would save from adding an extra tax on gasoline, why cant he be further specific on the 'how's of plugging the Federal Treasury sieve? Anyway, nobody is fooled in the least. I dey get updates from my people for Naija........ The man has bitten more than he can swallow. posted on 01-07-2012, 17:38:17 PM NoLongThing Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 What a desperate and emotionally laden but empty speech. This man and his government are definitely reactionaries and not proactive for how else can one understand empty promises being made well after the horses have bolted? posted on 01-07-2012, 17:38:37 PM Picato Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: No he doesn't Remember how we all hammered on the size of his entourage at the Australia meeting Someone is definitely communicating these things to him Looks to me like he's listening So it takes very little to satisfy a whole FL like you. Check that speech wellu wellu oooh. He has really not said anything different from the argument they have been making. That Speech is not going to ameliorate the skyrocketing inflation occasioned by hike in petrol prices (also dubbed subsidy removal). The 1600 buses is a drop in the ocean for a country of 150 m people. For the heck of it, TTC or the Toronto Transit Commission has more than 1600 buses for seven million people. You know talk is cheap. Saying that you have ordered contractors in military style to do something does not mean it is really going to be done. The speech is like whispering sweet nothings to your lover's ears. They are sweet but nothing. posted on 01-07-2012, 17:40:45 PM Igboamaeze Re: National Broadcast President Jonathan On The Deregulation 1/7/2012 QUOTE: ...Do you still intend to spend 1 billion naira for feeding you and Patience in 2012?... ------ May be I missed it, but Rueben Abati & co ought to have corrected this erronous impression long ago given that it has become a favourite soundbite of Jonathan's opponents. On a serious note, and please believe me, a budget is not made for individuals. It is made for the relevant organs of government. The line item in question here is one called Meals and Refreshments. It is used to capture the cost of, well, Meals and Refreshment by government offices and not their families. It records such things as drinks, tea/coffee, snacks, lunch, dinner, etc. For instance, it is normal for government agencies to entertain their guests. When foreign presidents and dignatories visit, such provisions are used to entertain them. And to the best of my knowledge, this practice is applicable in most countries and companies, small and big. If villagers were to visit, say, Chevron or Shell, it is not unusual for the host to provide drinks and food. It has absolutely nothing to do with Jonathan's personal kitchen (although I wouldn't know if this is being abused or precisely how it is applied in practice since I've never seen the green and white gates of Aso Rock). Let it also be known that most ministries and gencies of government have similar lines in their budgets (see www.bof.gov.ng for previous budgets and 2012 Draft) Whether the amount provided under this budget line is reasonable or excessive is another matter which is left for the people to decide. And in my view, I would think that it is too much in the light of the dire economic condition of the country. Going further, I would ask Nigerians to insist that the budgets of National Assembly and the National Judicial Council (NJC) be made public as well. The whole idea of accountability is that the public, the real owners of the resources, are fully aware of how public funds are being spent. It should be encourage... Go to the Full Discussion Thread Comments Page: 1 2 3 4