THERE IS NOTHING WRONG IN SUBSIDISING FUEL

In taking into consideration the quality of arguments being made by government agents championing the crusade to remove fuel subsidy in recent times, one can conveniently conclude that there is a whole lot of misunderstanding of what government is all about. For the avoidance of doubt; the primary aim of government is to promote the well-being of its citizenry. This can be done through fiscal policies and socio-political engineering. Unknown to the army of anti-subsidy apostles, fuel subsidy is largely the only benefit being enjoyed by Nigerian masses. It is no longer news that the average Nigerian family provides its own electricity, water, and security. Under normal circumstances, these fundamental services are supposed to be provided by government at an affordable rate.

There is no doubt that Nigerian workers are among the least remunerated in the world. While public servants in smaller African countries can rely on their monthly salaries for feeding, transportation, rent, and medical exigencies; same cannot be said of civil servants in Nigeria. This is so because; the bulk of their incomes are expended on providing electricity, water, and security. Little or nothing is therefore left to take care of their feeding, transportation, rent, health and academic needs of their children.

While it is a naked fact that the removal of fuel subsidy will inflict heavier economic burden on the Nigerian masses, government seem not to bother a bit. The nation’s economic advisers and fiscal policy formulators have painfully chosen to blindly follow World Bank and IMF theories without first appreciating the fact that the socio-economic framework of Nigeria is not strong enough to withstand subsidy removal. No leader has ever succeeded without the application of common sense. It took common sense for Hugo Chavez of Venezuela to return the South American country back on the track of growth and prosperity. Little wonder why Venezuela is reputed to be the country with the cheapest petrol- just 4₵ or N6 per litre. It is all about common sense.

As the sixth world’s largest producer of crude oil, Nigerians are condemned to queue for hours to buy petrol and kerosene even at very exorbitant rates. The nation’s four refineries have never worked up to its installed capacities. Without shame, government officials have come out to openly blame corruption for this sordid tale. First, was the issue of cross-boarder smuggling of petroleum products. It was sickening to hear the former Minister of Finance, Dr. Mansur Mukhtar argue that the low price of fuel in the country has encouraged the smuggling of the commodity across the nation’s border.
While government have continued to argue that the smuggling of petroleum products across the nation’s boarders is partly responsible for scarcity, no Customs official has been punished for dereliction of duty. Rather, it is the Nigerian masses that are being punished for the sins of the Nigerian Customs and associated security agencies at the country’s boarder posts. How can a serving minister make such a grave indictment on key government agencies and yet nothing happens. The much noised about rule of law of the present administration should be dismissed as a farce. Were it to be in developed societies, this high level indictment of the Customs and security agencies in the nation’s border posts by the Minister of Finance is enough for several top government officials to resign.
It is usually hard to believe when top ranking government officials argue that it is only through deregulation that corruption in the downstream sector of the petroleum industry can be eliminated. What efforts has government done to bring to book all those involved in corrupt practices in the petroleum sector? To me, this is a clever way of government telling the world that it has lost the anti-graft war. To a very large extent, all the noise about fight against graft is just but a charade. Our leaders should stop deceiving the masses. To do this, the federal government should without hesitation disband both the EFCC and ICPC until a time when we are ready to arrest the growing tide of corruption in high places.

The patience of Nigerian masses is running out very fast. Let me emphasise here that it was mainly for the fear of military intervention and possible disintegration of the nation that Nigerians ignored the charade that was the 2007 presidential elections. The planned removal of fuel subsidy will definitely place regrets on the heads of the masses. It is very likely that Nigerians would come in their millions to ask for Yar’Adua’s head.

Apart from the fact that corruption has almost turned out to be a way of life in Nigeria, federal roads in the country are among the worst in the whole of Africa. The power sector has become a source of shame and embarrassment to Nigerians. More than thirty months into the four year term of the present administration, current power situation is so bad that it cannot support any meaningful economic development. Businesses are closing daily and unemployment figures reaching to high heavens. The educational sector has completely collapsed, while quality health care services are accessed only by the very few rich ones among us. Crime rate has reached an alarming state despite all the guns and armoured personnel carriers provided for the Nigeria Police.

Nigeria should borrow a leaf from the Norwegians. The best way to fight crime is through the even distribution of wealth. When citizens live above poverty line, crime rate will drop naturally. I do not think the removal of fuel subsidy has any thing to do with even distribution of wealth.

The shallow argument that monies saved through the removal of fuel subsidies would be invested in other critical sectors of our economy is an insult on our sensibilities. The problem with Nigeria is not the lack of financial resources to grow our economy. Our problem is bad leadership. When we have good leaders, corruption will be put in its proper place.

More than anything; the federal government should not allow forces in the international oil market to destroy the very essence of government. Perhaps, I should build a monument here to highlight the fact that many Nigerian workers spend over 50% of their salaries on transportation alone. This has not only affected the quality of their meals; the health and educational needs of their children and dependants are relegated to the background. This is the main platform for the growing of illiteracy, poverty, and crime in our society. Only recently, the nation was shocked with the sad news of mass failure of Nigerian students in both WAEC and NECO.

The purchasing power of citizens is determined by their take home pay. When the price of crude oil goes up in the international market in a deregulated economy, crude oil earnings jump. In the same vein, the pump price of petrol and other related products too increases while the take home pay of workers remains stagnant. This development no doubt reduces the purchasing power of citizens. Subsidies are therefore given whenever the fiscal instruments of deregulation exceed pre set bench mark. Ordinarily, bench marks are set with the nation’s socio-economic framework in mind. That is to say, deregulation has a human face. It should not be different in Nigeria. It should be noted that in most developed countries where fuel subsidy has been removed, the salary of an average worker is able to provide for his or her family’s feeding, transportation, health care, and social needs. They are even able to make savings. The BIG question is: How many Nigerians earn monthly salaries that can sustain them and their families for up to one week, not to talk of making savings?

Government’s position on the removal of fuel subsidy can be conveniently related to the conflict between ASUU and the federal government. Most persons supporting the federal government’s position are those who either have their children in foreign universities or are fortunate to have had their wards go through university. In the same vein, the bulk of those pushing for the removal of petrol subsidy can afford to buy petrol even at N500 a litre. They do not bother about the fate of over 100m poor Nigerians that cannot afford a litre of petrol at N65.

Nigeria belongs to both the poor and rich. For a very long time now, the poor have lost their stake in the Nigerian Project. The nation’s political culture is such that the masses do not have any means of holding their leaders accountable. The electoral law does not make elected officials respect the feelings of voters. As it stands now, fuel subsidy is the only benefit Nigerian masses enjoy. Unfortunately, the government has commenced plans to withdraw this single benefit.

Frankly, fuel subsidy is the least of Nigeria’s problems. Our major problems are corruption, tribalism, the failure of rule of law, and poor political leadership. I can bet the president that even if government succeeds in going against the wishes of the Nigerian masses by removing fuel subsidy; the forces of corruption, tribalism, injustice, and poor political leadership would in no distant time swallow whatever gains that would be made. This does not make any sense. Government is therefore encouraged to allow poor Nigerian masses hold onto the single benefit of fuel subsidy pending when the nation’s socio-economic framework would be strong enough to support deregulation. This is the truth and nothing but the whole truth. So help us God!