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No fuel subsidy removal next year - Jonathan


PRESIDENT Goodluck Jonathan declared on Sunday that the Federal Government will not deregulate the subsidy regime in 2013. The president made the declaration during the Presidential media chat aired on the Nigerian Television Authority (NTA).


The president said that the government has already accommodated fuel subsidy in the 2013 budget. He disclosed that his administration has no intention of removing fuel subsidy in 2013.
According to him, recent media reports credited to him were misrepresentations as he was only comparing the Nigerian situation with that of Canada, which has 16 refineries, when he played host to students from the National Institute for Policy and Strategic Studies (NIPSS) in his office.
The president said if he has the intention of removing the fuel subsidy in 2013, he would not have included subsidy fund in the 2013 budget.
According to the number one citizen, the comment he made was taken out of context, adding that he advocated deregulation on the basis of issue raised by the  delegation from NIPSS.
The group, he said, had conducted a study of Canadian refinery sector with a conclusion that the nation has sixteen well functioning refineries, adding that the refineries were however private sector owned.
The president noted that his reaction was to emphasise that unless Nigeria deregulate her oil sector, necessary investment will not come to set the sector right.
He also explained that private sector funding is not coming because most investor granted licences for refineries are unwilling to put their money in a regulated oil sector.
According to the President it is too early to make comments on the 2015 election, adding that whatever he says now will surely be misconstrued.
“If the President tells you he is contesting 2015 election, it will generate issues. I am not contesting, still is an issue and even some of my cabinet members will even resign and go. Before you ask whether the President will contest or not, wait till 2014. Give us time to know whether Mr. President will contest in 2015 or not. I don’t want to distract my government.  If you want to hear from me wait till 2014,” he said.
Commenting on the controversial single tenure debate, the president noted that the decision is for Nigerians to make, noting that the ongoing hearings on the review of the constitution is in the right direction.
He noted that his original viewpoints on the issue was informed by decision of a committee he chaired while a vice president, stressing however that reactions of Nigerians show that they favour the two tenure provisions.
The president posited that if the electoral system is reformed, the two term tenure provisions can still be retained in line with desires of Nigerians.
On budget 2013, the president justified the $75 oil benchmark on the ground of international best practices, adding that “fixing oil benchmark is not a simple arithmetic.
The president described the oil benchmark as a key economic management instrument in an oil economy, warning that if benchmark is raised, rating agencies may down grade the country ratings.
“Benchmark communicates something to the world. Only here in Nigeria we think we should spent all what we earned. If we continue to spend all what we earned, then we risk getting negative outlook“, the president said
He noted that investors are attracted to oil economy with low oil price benchmark, adding that “if we fix high rate, investors will be scared“
The benchmark, the president said is always professionally fixed by many stakeholders including ministry of finance, petroleum, organised private sector and the banking committee of the Central bank of Nigeria.

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