Nigeria is broke, economy shrinking – FG

Nigeria is broke, economy shrinking – FG
May 18 21:58 2016

The Minister of Information and Culture, Mr. Lai Mohammed said on Wednesday that the price of Premium Motor Spirit (PMS) was increased from N86.50 to N145 per litre by the federal government because Nigeria is broke and its economy is shrinking.

The minister said this in Abuja while briefing journalists at the end of the Federal Executive Council (FEC) meeting.

He said the increase had nothing to do with the removal of fuel subsidy as is being claimed by some Nigerians.

“The increase is not about subsidy; the fact is that Nigeria is broke, pure and simple…The economy is shrinking,” the minister said.

Minister of Labour and Employment, Mr. Chris Ngige told journalists that the ongoing strike by the Nigeria Labour Congress (NLC) against the increase in the price of fuel is illegal.

He said the congress and its affiliates should be mindful of the existing labour laws and the court injunction obtained by the Ministry of Justice stopping the strike.

The minister said section 40 of the labour law prescribed that workers on essential services must give a notice of not less that 15 days to their employers before they could embark on an industrial action.

He said the penalty for violating such provision was N100,000 fine or six months in jail.

He said, however, that government was still amenable to amicable resolution of the dispute with the labour and its civil society allies on the fuel price increase.

The minister said government would reconstitute the board of Petroleum Products Pricing Regulatory Agency (PPPRA) in the next two weeks as demanded by the organised labour.

In his remarks, Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola told journalists that the Federal Executive Council has approved a 30 percent tax remission to Dangote Group for the construction of Kabba-Obaja-Lokoja-Ilorin road.

He said by this arrangement, the Dangote Group would undertake the reconstruction of the roads and the cost would be deducted from its taxes, not more than 30 percent annually.

“It is a total economic policy which council considered and approved because it gives support to industry, it enables us take benefit of our tax law to renew infrastructure at a time where we are really challenged for resources to finance all our roads.

“It also enables us to save lives by quickly and urgently rebuilding that road so that other commuters who also depend on that road for their livelihood would also benefit fromm the road,” he said.