By Labeebah Dhikrullah
…Cautions FG to avoid hasty implementation of Student Loan Bill
A faith-based organisation headquartered in Lagos State, The Muslim Congress (TMC), has called on President Bola Ahmed Tinubu to expedite action on his proposed measures to cushion the effect of the fuel subsidy removal.
While commending the decision to remove fuel subsidy as a steely resolve well-made and a calculated policy with potential to pull the country from the precipice of bankruptcy, the organisation noted that the underprivileged have started facing the painful effects of the abrupt pronouncement.
These statements were made at the Series 24 of the State of the Nation Address of TMC Committee on Social Mobility, the Economy and Politics presented by its president, Alhaji Abdulwasiu Bangbala on Saturday, July 8, 2023.
“The announcement of the removal of fuel subsidy during President Tinubu’s inaugural speech on the 29th of May is a steely resolve well made. Evidently, it is a well-calculated policy that can potentially pull the country from the precipice of bankruptcy and capable of ending the rogue regime of subsidy corruption that became a massive drain pipe on our country’s finances. However, for the underprivileged, the abrupt pronouncement of the removal is considered harsh, as the masses only see the painful effects that go with the decision,” the text of the address read.
“Today, Nigerians have had to cut down their daily expenses given the skyrocketing prices of goods, even as a new tariff regime is expected to commence in the power sector. The onus now lies with the President Tinubu-led government to expedite action on its proposed measures to cushion the effects of the subsidy removal following widespread economic consequences of the decision.
The committee noted that the best way to mitigate the impact of the subsidy removal is for the government to clean up the mess in the oil sector.
“And, without mincing words, one of the best ways to mitigate the impact of subsidy removal on Nigerians is for the government to clean up the mess in the oil sector. The courage that President Tinubu has displayed so far should be stretched further in the recovery of all funds looted in connection with the racketeering and other thefts in the oil sector. And as measures to ultimately crash prices of petroleum products, the government needs to expedite action on the completion of the Port Harcourt Refinery which seems to be taking eternity to repair.
“Critical decisions on the Kaduna and Warri refineries should be taken, including the possibility of outright sale and/or Public-Private Partnership with capable investors. We acknowledge the rapid steps taken so far by the new administration to steer the economy in the right direction. We, therefore, wish to enjoin the citizens to cooperate and stand by the government in its renewed drive to make our dear nation great again.”
Unification of exchange rate by President Tinubu commendable
TMC also addressed another economic policy of the new administration on the unification of exchange rate, lauding it as a bold step.
The organisation, however, tasked the government to complement this policy with the taming of inflation, improvement of food security and boosting of dollar supply in the market.
“The previous regime where the Naira had several rates against the dollar and which promoted unproductive arbitrage and unfair competition really dealt the nation’s economy a huge blow. This new development notwithstanding, there are still fundamental issues; the need to tame inflation and curb rising food price while also improving food security. All of these must be addressed if rapid progress must be made in the new political dispensation,” it said.
“The convergence of the rates is only the first step in curing the ills of the FX market. The next step, and perhaps the most crucial, is to boost supply into the market. The government should prioritize the supply of dollars to support the naira float. In a floating exchange rate regime, there should be sufficient availability of foreign exchange to defend the currency against the actions of speculators. This is the time to diversify the economy away from the overdependence on fossil fuel and invest profitably in non-oil resources to boost the sources of foreign exchange outside of the current crude oil exports. It is pertinent to say that the work is just beginning and all stakeholders within the private and public sectors must be ready to support the administration’s effort through effective collaboration, hard work and sacrifice.”
FG should review concerns raised on Student Loan, avoid hasty implementation
Also speaking on the trending issue of the Student Loan Bill which has been assented to by President Tinubu, TMC cautioned the Nigerian government to avoid hasty and misguided implementation of the initiative.
The organisation noted that government should take a holistic look at all dimensions of the scheme and be ready to tweak regulations on it.
“As the long-canvassed student loan bill was signed into law, establishing the Nigerian Education Loan Fund (Access to Higher Education Act 2023) from which interest-free loans would be given to indigent Nigerian youths, there have been mixed reactions amongst stakeholders. Albeit, the move has attracted vocal support and vociferous opposition in equal measure. However, it is noteworthy that, contrary to the impression in some quarters, the student loan scheme is only an attempt to address just one of the several challenges in our higher education system; the financial encumbrance for indigent students seeking education in government-owned institutions of higher learning.
“Some of the key challenges of higher education in Nigeria include inability to make these institutions real citadels of learning, poor research and teaching traditions, inadequate funding, poor remuneration of staff, among other perennial issues. Against this background, we expect the government to go beyond the formal introduction of the student loan scheme to urgently address the problems of tertiary education in the country in a more expansive manner. It must be prepared to tweak the regulations of the loan scheme in the light of necessary changes thrown up by qualitative reforms.
“Pertinent questions have been raised by critics of the scheme. Questions including the possibility of political interference in disbursing the loans and questions on the oddity of punitive measures for defaulters who may not have been gainfully employed, cannot be shied away from. There is the need to allay the growing fear of a possible introduction of tuition fees in public universities, which could deny millions of students of higher education. The government must, therefore, take a critical and holistic look at every dimension of the scheme in order to avoid hasty or misguided implementation that could create bigger problems.”
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