IN the wake of rising cost of subsidising petroleum products by the Federal Government, the Nigerian Institute of Quantity Surveyors (NIQS) has thrown his weight behind the planned removal of fuel subsidy, asserting that it will be of immense benefit to Nigeria's economic and social development in the country.The quantity surveyors say that the fixation on subsidy only indicated Nigeria's minimal expectation and low ambition quotient, which is not a substitute for the smart government planning and effective regulation that is required to build well planned, functioning modern societies.NIQS President, Mr. Agele Alufohai, while speaking at the fourth Distinguished Lecture of NIQS titled 'Total Deregulation Of The Downstream Petroleum Sub-Sector ' Effect on Real Estate Development', emphasised that the subsidy removal is in line with global trends that enables governments reduce national debts and restructure the economy for growth even as removal of fuel subsidy and deregulation of oil sector will open investment opportunities in the industry, leading to infrastructure growth and job creation.The NIQS President commended the protests against imposition of fuel subsidy by the Federal Government in different parts of the country early in the year, stating that it would make government more responsible to its people. He however, pointed out that the demonstrations had not resolved the core issues that plague Nigeria's oil industry, such as corruption, inefficiency, lack of investment and discouragement, among others.Mr. Alufohai asserted that the main controversy surrounding subsidy removal underscores questions of trust in government, the relationship between economic policy, transparency and corruption, and the strategy of civil society groups and opposition politicians to make government accountable in a growing democracy such as ours.He urged Nigerians to canvass for more citizenship engagement and monitoring systems that would not only guarantee the evolvement of quality ideas to ensure that the nation's resources are put to productive uses, but also provide for greater regulatory constraints to prevent public officials from abuse of office. According to him, 'governance is about creative solutions-reaching progressive bargains between the governed and the government'.'We know the topic is very touchy and many have criticised it, but we are not happy that the nation is in this state with all has gone wrong. Reduction of the subsidy on fuel and the investment of the associated savings in social and physical infrastructure could make our economy more productive, assist the creation of jobs and improve the incomes and livelihoods of poor Nigerians.'For Prof. Timothy Nubi from Estate Management Department, University of Lagos, Akoka, Lagos, with the endemic decay in infrastructure, only attitudinal change from leaders and Nigerians could solve the nations problems.He emphasised that proper guidance towards that positive change is needed as Nigeria is presently at the precipice of change, adding 'Which way forward' We are at cross road like the four lepers in the bible. The Nigeria content initiative must be vigorously pursued to avoid the repeat of PAN and Volkswagen.Expatiating on the effects of deregulation on real estate sector, Prof. Nubi stated, 'For materials, they will be influenced by the cost of production and haulage. These are not linear incremental but geometrical in nature.The overhead cost is the indirect cost on the activities that will also increase astronomically, while land speculators and vendors will hike the cost of land.Chairman at the event, President Association of Professional Bodies of Nigeria (APBN) Mr. Segun Ajanlekoko represented by the Vice president, Mr. Fasotu stated, 'As professionals we are supposed to move the economy forward and APBN's role is to influence politicians to make positive decisions and we believe that lectures like this would engender that.'Deregulation of the downstream sector, he added, will enable Nigeria to chart a way for course of maritime industry and shipping development, which can save N2 trillion annual capital flight and generate jobs for the youths.Lagos Chamber of Commerce and Industry (LCCI) Director-General, Mr. Muda Yusuf, also explained that canvassing deregulation is very hard because of the level of poverty and illiteracy.'All these has made deregulation a very controversial issue because of political, economy and social issues attached to it. Cost of procurement has been blown up because of the high cost of fuel. The idea about deregulation is to provide funds to fix infrastructure. And for this message to be passed along, a lot of work has to be done.'The problem we have with the down stream sector is that it is still been run by bureaucrats. This way deregulation will not work. But look at the up stream sector, the situation is better and that is the way it should be. The system is not run on merit.
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