Sunday, April 22, 2012
Farouk Lawan: Teaching Okonjo-Iweala and Sanusi how to fight corruption
There is no denying the fact that corruption has reached a pandemic state in Nigeria. Even unborn babies can feel the pains of corruption right inside the wombs of their mothers. The situation has become so bad that no one can take for granted minor issues like electricity, road, petrol, kerosene, water, sanitation, education, and health care services that even small and poor nations have conquered decades ago.
Unfortunately, the desire by the larger Nigerian society to dislodge the growing culture of corruption has been hindered by the profuse insincerity mostly on the part of those saddled with the responsibility of managing our common wealth. We must not forget the fact that people are government for different reasons. While some are in government to serve the interest of the wider society, others are there to promote their personal interest. There are also some who go into government mainly to advance tribal and religious sentiments. Of greater danger to the nation are those who stay in government to promote the agendas of third-party organizations and foreign countries.
Despite the gloomy impression most people have about corruption in Nigeria, we have the capacity to effectively check it. The problem has been that those who are supposed to champion the fight against graft end up just paying lip service. Take for instance the issue of corruption in the management of the fuel subsidy scheme. Surprisingly, the minister of finance/coordinating minister of the economy, Dr. Okonjo-Iweala and the CBN governor, Mallam Lamido Sanusi went to town painting a very sad picture of Nigeria being a country without citizens credible enough to be trusted with the mere management of her fuel subsidy scheme. It was partly on the strength of this flawed opinion that they both suggested the outright removal of fuel subsidy even though they knew quite well that it will create serious economic problems not just for the poor and unemployed citizens, but for the president as well. The other reason they prescribed the removal of fuel subsidy was to mobilize additional cash to adequately finance the transformational budget of the Goodluck Jonathan-led administration.
As against the lies they (Okonjo-Iweala and Sanusi) have been telling vulnerable Nigerians, the United States and EU all maintain different subsidy schemes purposely aimed at promoting production and at the same time protecting the purchasing power of the citizens. Ironically, the IMF and EU were the first to congratulate President Jonathan when the federal government implemented the fiscal policy of fuel subsidy removal on the 1st of January, 2012. The handwriting was clear enough. They simply wanted a situation where the already poor and suffering masses will raise up their voices against government. With such development, the nation’s political leadership will not have the required space to design and implement practicable fiscal policies that will help free the country from western economic slavery.
Quite frankly, most of the industrialized nations are not happy with Africa’s early attainment of political independence. It has robbed them of cheap access to raw materials from the continent. Therefore, the last “mistake” they (industrialized nations) will make is to allow Africa gain economic independence too soon. For decades now, western democracies have been hiding behind the World Bank and IMF to prescribe fiscal policies that will hurt than help grow developing economies. Examples of some of such policies include Structural Adjustment Program (SAP), currency devaluation, and anti fuel subsidy among others. In case we are not aware; much of the economic gains made by Asian countries did not come from prescriptions by either the IMF or World Bank. Rather, their economic experts and fiscal policy formulators developed indigenous strategies to meet their peculiar needs and circumstances.
No matter how deep corruption has eaten into the fabrics of our national life, the least one expected from Okonjo-Iweala and Lamido Sanusi was their painting of Nigeria as a failed country with no credible people. This writer will never agree that Nigeria does not have the capacity to manage a program as small as the fuel subsidy scheme. The best they did was to invest so much of half-truths and threats to stampede the federal government to removal fuel subsidy when there were better options that will not hurt the poor and suffering masses.
To Okonjo-Iweala and Sanusi, the removal of fuel subsidy is the best way to fight corruption in the NNPC, PPPRA, and Customs Services. This opinion is not only wrong but carries long poles of insensitivity to the plights of ordinary Nigerians, most of who are unemployed, poor, and hungry. Perhaps, they should be reminded that a medical doctor worth his onions will not prescribe the amputation of the neck because majority of his patients were complaining of headache. What the House of Representative did with regards the fuel subsidy scheme is the best way to approach critical national issues such as corruption. This writer commends Honourable Farouk Lawan and members of the House of Representative ad-hoc committee on fuel subsidy utilization for charting the right course in handling sensitive national issues. At least, we have now known the truth. We now know who the real enemies of Nigeria are. We know those who have stolen our common wealth.
Okonjo-Iweala and Sanusi are scared of the truth because of its bitter taste. Let them stop administering the prescriptions of the IMF and World Bank. Though they coat their tongues with sugar, and carry on as patriots; their minds are made of steel from the west. The time has come for all to look inward and develop fiscal policies that will address our peculiar needs and circumstances without placing more burdens on the frail backs of poor and hungry Nigerians. They are not helping the president at all. This was the reason behind my piece, “How technocrats destroy political leaders” and “The art of misleading a president” published on my blog and some off and online media.
Tuesday, April 17, 2012
OKONJO-IWEALA AND THE WORLD BANK: TIME TO DIVORCE
On the 15th of September, 2011; I posted a piece on my blog titled “Okonjo-Iweala: A Patriot Blinded by the West.” This piece was also published by some off and online media. I had attempted to highlight three major points. In the first place, I had wanted to drum home the point that Dr. Ngozi Okonjo-Iweala, minister of finance and coordinating minister of the economy has the passion and courage of a true patriot. The second point I wanted to establish was the fact that Okonjo-Iweala was an involuntary “apostle” of western democracies. Thirdly, I was of the opinion that western democracies can only use but never trust “apostles” like Okonjo-Iweala. The outcome of the election to select a replacement for the outgoing World Bank chief, Robert Zoellick has vindicated me. The withdrawal of Colombia’s former finance minister, Jose Antonio Ocampo from the World Bank presidential race was enough for Okonjo-Iweala to see the spirit of United States celebrating with bottles of champagne on the streets of Washington DC. Sentiment apart, Dr. Ngozi Okonjo-Iweala had a superior credential to occupy the World Bank presidency.
Typical of every vibrant and complex society, some applauded my candid opinion and others poured heaps of condemnation on my head. One fair point to note however is the fact that the criticisms that followed my piece had no capacity to change what was wrong to right. What was then wrong, if one must ask? It was wrong for Okonjo-Iweala to look at Africa with western eyes. While it is true that advancement in science and technology has compressed the world into a global village, we cannot stand on this truism to deny the fact that population, culture, and religion plays critical role in shaping the local economy of every society. Perhaps, owing to the fact that she was an “insider”, Okonjo-Iweala often times acted in manners that suggested she was too informed to accept contrary opinions- especially the ones dressed in the robes of criticism.
Not only was the foundation of her campaign very shallow and stained with racial sentiments, she was undoubtedly a victim of her own characteristic arrogance. Right from the first day she came to work for the Nigerian government during the Obasanjo administration, Okonjo-Iweala has refused to accept the bitter fact that in economics, issues are isolated and treated on their individual merits. Only lazy people who do not believe in themselves will rely on the ideas of others without paying attention to associated evidences and facts. It would also not be fair for any person charged with managing the economy of a nation to rely only on old ideologies or viewpoints of political parties to design fiscal policies. What else can one expect from a World Bank apostle?
Not aware of the hidden agenda of her western mentors, Okonjo-Iweala was deliberately deceived into looking at Nigeria’s economic problems with “western eyes”. It was for this simple reason that she could not accept a fundamental truth spoken by even uneducated women in village markets: every society on the face of the earth has its peculiarities. Sadly, this was the very point her sole opponent and eventual winner of the World Bank presidential election on Monday 16th April, 2012; Jim Yong Kim used to sink her boat. Kim later revealed to the BBC that he would consider the cultural and social peculiarities of various regions to ensure that the Bank’s schemes achieved the desired results.
As part of efforts to successfully use both the IMF and World Bank to secure pole positions in global finance and economy, western democracies intentionally creates the false impression that population, poverty level, culture, and religion does not matter in designing fiscal policies. It was based on this false opinion that Okonjo-Iweala spearheaded the subsidy removal battle against the Nigerian masses. This was what I wrote on my blog: “It must be noted that every society has its own peculiarities. As a result of this, what has worked in country A may not necessarily work in country B. Africans wearing “western eyes” will never realize this fact even though it is profusely clear. For instance, the governor of Nigeria’s Central, Lamido Sanusi and Minister of Finance, Ngozi Okonjo-Iweala are all bitterly agitating for the removal of fuel subsidy simply because same has worked elsewhere in America and Europe. Since they are wearing “western eyes”, they have failed to realize that: (a) Unemployment figures are very low in America and Europe (b) An average American or European worker earn as much as $130 or N19,500 per day. With this kind of salary, Nigerians can afford to buy fuel even at N150 per liter.”
If after failing to win the confidence of her mentors, Okonjo-Iweala does not learn anything, repent, and jettison her World Bank “mentality”; President Goodluck Jonathan should waste no time to offload her. Industrialized western democracies have through her, succeeded in turning most Nigerian masses against the president owing to some non-aligning fiscal policies she introduced. We must not forget the fact that one of the veiled aims of the IMF and World Bank is to prescribe fiscal policies that will pitch the masses against governments of developing countries. This is to create crisis and give little or no room for political leaders to build their national economies and secure economic independence. Western nations are afraid that Africa securing economic independence will mean lesser exports and dwindling foreign exchange revenue.
Is it not sad that Okonjo-Iweala suggested the removal of fuel subsidy as a sure way of fighting corruption in the nation’s oil sector? Is this how other countries fight corruption? Subsidy in itself is not a bad idea. Nations introduce subsidy to protect its citizens. As you read this, the EU subsidizes agriculture and fisheries and yet advice Nigerian government to withdraw fuel subsidy. This is not just ironic but suspicious. The fiscal policy of fuel subsidy removal is directly in conflict with the World Bank’s commitment to fighting poverty in developing countries. We are aware that the partial removal of fuel subsidy in January has expectedly jumped the prices of goods and services thereby weakening the purchasing power of a greater percentage of Nigerians. The direct consequence is increase in poverty level. Those that used N20,000 to meet the needs of their families now require about N40,000 or more to do same because the cost of transport, rent, food, education, and health care services have climbed up the ladder.
I have always maintained that just as there are many ways to kill a rat, there are also many ways to remove fuel subsidy. It is quite sad that Okonjo-Iweala preferred the option that will serve the parochial interest of her western mentors. We are no longer fools.
Typical of every vibrant and complex society, some applauded my candid opinion and others poured heaps of condemnation on my head. One fair point to note however is the fact that the criticisms that followed my piece had no capacity to change what was wrong to right. What was then wrong, if one must ask? It was wrong for Okonjo-Iweala to look at Africa with western eyes. While it is true that advancement in science and technology has compressed the world into a global village, we cannot stand on this truism to deny the fact that population, culture, and religion plays critical role in shaping the local economy of every society. Perhaps, owing to the fact that she was an “insider”, Okonjo-Iweala often times acted in manners that suggested she was too informed to accept contrary opinions- especially the ones dressed in the robes of criticism.
Not only was the foundation of her campaign very shallow and stained with racial sentiments, she was undoubtedly a victim of her own characteristic arrogance. Right from the first day she came to work for the Nigerian government during the Obasanjo administration, Okonjo-Iweala has refused to accept the bitter fact that in economics, issues are isolated and treated on their individual merits. Only lazy people who do not believe in themselves will rely on the ideas of others without paying attention to associated evidences and facts. It would also not be fair for any person charged with managing the economy of a nation to rely only on old ideologies or viewpoints of political parties to design fiscal policies. What else can one expect from a World Bank apostle?
Not aware of the hidden agenda of her western mentors, Okonjo-Iweala was deliberately deceived into looking at Nigeria’s economic problems with “western eyes”. It was for this simple reason that she could not accept a fundamental truth spoken by even uneducated women in village markets: every society on the face of the earth has its peculiarities. Sadly, this was the very point her sole opponent and eventual winner of the World Bank presidential election on Monday 16th April, 2012; Jim Yong Kim used to sink her boat. Kim later revealed to the BBC that he would consider the cultural and social peculiarities of various regions to ensure that the Bank’s schemes achieved the desired results.
As part of efforts to successfully use both the IMF and World Bank to secure pole positions in global finance and economy, western democracies intentionally creates the false impression that population, poverty level, culture, and religion does not matter in designing fiscal policies. It was based on this false opinion that Okonjo-Iweala spearheaded the subsidy removal battle against the Nigerian masses. This was what I wrote on my blog: “It must be noted that every society has its own peculiarities. As a result of this, what has worked in country A may not necessarily work in country B. Africans wearing “western eyes” will never realize this fact even though it is profusely clear. For instance, the governor of Nigeria’s Central, Lamido Sanusi and Minister of Finance, Ngozi Okonjo-Iweala are all bitterly agitating for the removal of fuel subsidy simply because same has worked elsewhere in America and Europe. Since they are wearing “western eyes”, they have failed to realize that: (a) Unemployment figures are very low in America and Europe (b) An average American or European worker earn as much as $130 or N19,500 per day. With this kind of salary, Nigerians can afford to buy fuel even at N150 per liter.”
If after failing to win the confidence of her mentors, Okonjo-Iweala does not learn anything, repent, and jettison her World Bank “mentality”; President Goodluck Jonathan should waste no time to offload her. Industrialized western democracies have through her, succeeded in turning most Nigerian masses against the president owing to some non-aligning fiscal policies she introduced. We must not forget the fact that one of the veiled aims of the IMF and World Bank is to prescribe fiscal policies that will pitch the masses against governments of developing countries. This is to create crisis and give little or no room for political leaders to build their national economies and secure economic independence. Western nations are afraid that Africa securing economic independence will mean lesser exports and dwindling foreign exchange revenue.
Is it not sad that Okonjo-Iweala suggested the removal of fuel subsidy as a sure way of fighting corruption in the nation’s oil sector? Is this how other countries fight corruption? Subsidy in itself is not a bad idea. Nations introduce subsidy to protect its citizens. As you read this, the EU subsidizes agriculture and fisheries and yet advice Nigerian government to withdraw fuel subsidy. This is not just ironic but suspicious. The fiscal policy of fuel subsidy removal is directly in conflict with the World Bank’s commitment to fighting poverty in developing countries. We are aware that the partial removal of fuel subsidy in January has expectedly jumped the prices of goods and services thereby weakening the purchasing power of a greater percentage of Nigerians. The direct consequence is increase in poverty level. Those that used N20,000 to meet the needs of their families now require about N40,000 or more to do same because the cost of transport, rent, food, education, and health care services have climbed up the ladder.
I have always maintained that just as there are many ways to kill a rat, there are also many ways to remove fuel subsidy. It is quite sad that Okonjo-Iweala preferred the option that will serve the parochial interest of her western mentors. We are no longer fools.
Thursday, February 16, 2012
JONATHAN: DEPLOYING WISDOM TO DISARM THE ENEMIES WITHIN
To many, President Goodluck Jonathan is simply seen as a very lucky man. But beyond this popular opinion, he is more of a firm believer in the potency of natural wisdom or common sense. This is the secret behind his rapid and steady rise from grace to higher grace. For many who don’t know him; Goodluck Jonathan can be easily mistaken for someone who does not have the head to carry the burden that Nigeria has painfully become. Right from his days as deputy governor in Bayelsa State, he has never believed in the vain and negative attitude of “I know it all.” For this reason, he devotes ample time to listen to a wide range of opinions. Jonathan is also known for trusting in the abilities of his aides. Unfortunately, this has in no small measure dented his vision as most of his lieutenants have abused the deep confidence reposed in them. It accounts for why some government officials pursue agendas clearly outside the vision of the president.
Much of the problems created or existing in the nation’s polity are the premeditated handiwork of members of the president’s working team. It is a sad fact that most people in government are there for the wrong reasons. Very few persons enter government to serve the interests of the larger society. In such a feral situation, political leaders will need more than the normal to succeed. For a few of us that saw it well in advance, we warned the president about the dangers of working with a legion of “enemies of the nation.” As complex as Nigeria is, there is no way “enemies” will not infiltrate the presidency. What every head of government needs to do in order to defeat these “enemies” or cabal is to be proactive. The major aim of the cabal is to hijack the presidency and dictate the turn of events in the country to their favour. It is however pertinent to note that while every administration grows its own cabal, there are key institutions that feed the “cabaltocracy.” They are the NNPC, CBN, and Customs Service. Of late, the Nation Assembly too has joined. The running of these critical sectors of the nation is mostly shrouded in secrecy. Any attempt to open their doors to public scrutiny is usually rebuffed. All amounts of resources are deployed to shield the activities of members of the cabaltocracy. Where it is believed that a particular person may not “play ball’, unorthodox means are employed to perpetuate their culture of crime.
In the case of Goodluck Jonathan, the signs were too clear to the leadership of the cabaltocracy that they cannot trust his presidency. This was mostly responsible for the strong resistance to his ascension to the presidency even in an acting capacity. When with the “doctrine of necessity” their world seems to be collapsing, the cabal decided to employ some other means to either colonize or destroy the GEJ presidency. It was obvious that they could not colonize Aso Rock because right from inception, Goodluck Jonathan had promised to stand with the masses. What many were afraid of is whether the president would be able to stop the cabal from destroying his administration, bearing in mind the number of enemies within.
Unknown to many, including the president; the sudden removal of fuel subsidy on January 1st was part of a subtle design to throw him out of office. Members of the cabal- in and outside government saw an opportunity in the fuel subsidy impasse to perfect their plans. There is no doubt about the fact that fuel subsidy was putting a big hole in the nation’s purse. Just as there are many ways to kill a rat, there were also several ways to withdraw fuel subsidy. Expectedly, the “enemies within the presidency” went for the option that will drastically weaken the purchasing power of the already 70% poor that are living below poverty line. The aim was simply to pitch the masses against government and expect the birth of an Arab Spring in Nigeria. To prove how true this opinion is, the anti-subsidy apostles never saw any need to deploy palliatives before the removal of subsidy. It would be recalled that some insignificant palliatives were only announced after labour and CSO had gone on the streets to call for the reversal of the fiscal policy. Why didn’t Okonjo-Iweala and Sanusi offer to take salary cuts before asking Nigerians to make sacrifice? Thank God, the president did not follow them blindly.
In line with his usual self, President Goodluck Jonathan deployed wisdom to disarm the many “enemies within” by standing with the masses. He emphatically reasoned like a political leader- not like a technocrat. Left with Ngozi Okonjo-Iweala, the minister of finance and economy and Sanusi Lamido, the governor of the CBN; the Goodluck Jonathan’s administration would have been part of history by now. These highly respected technocrats are simply doing the bidding of the World Bank and IMF- not that of Aso Rock. As part of a subtle agenda to protect the economies of key western nations, the World Bank and IMF usually prescribe fiscal policies that will hit hard on the poor and fuel anti-government sentiments among the masses in developing countries.
A close watch of the oil industry in most OPEC countries suggests that the best way to remove fuel subsidy is make local refineries functional. Okonjo-Iweala and Sanusi are not keen about this. Unfortunately, these anti-subsidy apostles have invested so much resource to argue that there are no credible Nigerians to run our economy successfully. They will be quick to cite the state of our four refineries to back their unpatriotic argument. This is a big shame. How can a country that cannot manage her refineries convince the international community that their investments would be safe? Let us stop deceiving ourselves. Unknown to many, the anti-subsidy apostle are actually the true enemies of the Nigerian masses. They are friends of the mostly corrupt fuel importers who have stolen billions of Naira from our common wealth in the name of fuel subsidy. That was why they could not dare call for a probe of the subsidy funds. They also downplayed the important need to refurbish our refineries so that they (importers) can continue to import fuel and make unregulated profit on top of the bent backs of 70% of poor Nigerians that cannot rely on their income to provide food, shelter, education, transport, and health care for their families. Let us note that the finance minister and CBN governor have been making so much noise about corruption but done nothing practical to fight it. Rather, it is the National Assembly that has taken the bull by the horn to expose the rot in the system.
It is the prayer of millions of Nigerian masses that President Goodluck Jonathan continues to use wisdom to fight his enemies within. This is the only way they can be protected from the ravaging and unpatriotic activities of the cabaltocracy within and outside government.
Much of the problems created or existing in the nation’s polity are the premeditated handiwork of members of the president’s working team. It is a sad fact that most people in government are there for the wrong reasons. Very few persons enter government to serve the interests of the larger society. In such a feral situation, political leaders will need more than the normal to succeed. For a few of us that saw it well in advance, we warned the president about the dangers of working with a legion of “enemies of the nation.” As complex as Nigeria is, there is no way “enemies” will not infiltrate the presidency. What every head of government needs to do in order to defeat these “enemies” or cabal is to be proactive. The major aim of the cabal is to hijack the presidency and dictate the turn of events in the country to their favour. It is however pertinent to note that while every administration grows its own cabal, there are key institutions that feed the “cabaltocracy.” They are the NNPC, CBN, and Customs Service. Of late, the Nation Assembly too has joined. The running of these critical sectors of the nation is mostly shrouded in secrecy. Any attempt to open their doors to public scrutiny is usually rebuffed. All amounts of resources are deployed to shield the activities of members of the cabaltocracy. Where it is believed that a particular person may not “play ball’, unorthodox means are employed to perpetuate their culture of crime.
In the case of Goodluck Jonathan, the signs were too clear to the leadership of the cabaltocracy that they cannot trust his presidency. This was mostly responsible for the strong resistance to his ascension to the presidency even in an acting capacity. When with the “doctrine of necessity” their world seems to be collapsing, the cabal decided to employ some other means to either colonize or destroy the GEJ presidency. It was obvious that they could not colonize Aso Rock because right from inception, Goodluck Jonathan had promised to stand with the masses. What many were afraid of is whether the president would be able to stop the cabal from destroying his administration, bearing in mind the number of enemies within.
Unknown to many, including the president; the sudden removal of fuel subsidy on January 1st was part of a subtle design to throw him out of office. Members of the cabal- in and outside government saw an opportunity in the fuel subsidy impasse to perfect their plans. There is no doubt about the fact that fuel subsidy was putting a big hole in the nation’s purse. Just as there are many ways to kill a rat, there were also several ways to withdraw fuel subsidy. Expectedly, the “enemies within the presidency” went for the option that will drastically weaken the purchasing power of the already 70% poor that are living below poverty line. The aim was simply to pitch the masses against government and expect the birth of an Arab Spring in Nigeria. To prove how true this opinion is, the anti-subsidy apostles never saw any need to deploy palliatives before the removal of subsidy. It would be recalled that some insignificant palliatives were only announced after labour and CSO had gone on the streets to call for the reversal of the fiscal policy. Why didn’t Okonjo-Iweala and Sanusi offer to take salary cuts before asking Nigerians to make sacrifice? Thank God, the president did not follow them blindly.
In line with his usual self, President Goodluck Jonathan deployed wisdom to disarm the many “enemies within” by standing with the masses. He emphatically reasoned like a political leader- not like a technocrat. Left with Ngozi Okonjo-Iweala, the minister of finance and economy and Sanusi Lamido, the governor of the CBN; the Goodluck Jonathan’s administration would have been part of history by now. These highly respected technocrats are simply doing the bidding of the World Bank and IMF- not that of Aso Rock. As part of a subtle agenda to protect the economies of key western nations, the World Bank and IMF usually prescribe fiscal policies that will hit hard on the poor and fuel anti-government sentiments among the masses in developing countries.
A close watch of the oil industry in most OPEC countries suggests that the best way to remove fuel subsidy is make local refineries functional. Okonjo-Iweala and Sanusi are not keen about this. Unfortunately, these anti-subsidy apostles have invested so much resource to argue that there are no credible Nigerians to run our economy successfully. They will be quick to cite the state of our four refineries to back their unpatriotic argument. This is a big shame. How can a country that cannot manage her refineries convince the international community that their investments would be safe? Let us stop deceiving ourselves. Unknown to many, the anti-subsidy apostle are actually the true enemies of the Nigerian masses. They are friends of the mostly corrupt fuel importers who have stolen billions of Naira from our common wealth in the name of fuel subsidy. That was why they could not dare call for a probe of the subsidy funds. They also downplayed the important need to refurbish our refineries so that they (importers) can continue to import fuel and make unregulated profit on top of the bent backs of 70% of poor Nigerians that cannot rely on their income to provide food, shelter, education, transport, and health care for their families. Let us note that the finance minister and CBN governor have been making so much noise about corruption but done nothing practical to fight it. Rather, it is the National Assembly that has taken the bull by the horn to expose the rot in the system.
It is the prayer of millions of Nigerian masses that President Goodluck Jonathan continues to use wisdom to fight his enemies within. This is the only way they can be protected from the ravaging and unpatriotic activities of the cabaltocracy within and outside government.
Monday, January 16, 2012
The Clash of Blind Support vs Courage
Blind support has destroyed many political leaders in the past. Sometimes, these support come in the form of ethnic, religious, or political patronage. I Thank God that President Goodluck Jonathan has finally realised this potent fact and decided to listen to the masses by exhibiting the rare courage of a true democrat by shifting grounds with regards the pricing of petrol. Unlike many may think, listening to the voice of reason does not in any way portray weakness. It rather gives beauty and strength to the political culture of democracy.
Right from the beginning when government announced the official withdrawal of fuel subsidy, I had come out to say, those who are appauding the decision do not love President Jonathan. I was convinced that this was not how democratic political leadership should be. There must be a linkage between vision and the people. The reason for my opinion is this: Democracy is centered around the people. Everything must therefore be done to protect the interests of the masses, most of whom cannot afford just one decent meal a day. The bitter truth is that the socio-economic framework of Nigeria is still too weak to sustain a further weakening of the purchasing power of the majority of citizens. The upward adjustment in the pump price of petrol by over 100% unarguably distorted the expenditure calculations of every Nigerian family, leaving the poor among us to hang on to gloom for survival.
According to statistics announced by the CBN governor, Mallam Lamido Sanusi, over 70% of Nigerians are living below poverty line. It meant that these Nigerians cannnot rely on their legitimate incomes to provide food, shelter, education, transport, and health care for their families. Apart from the problems of poor socio-economic infrastructure, the poverty situation in the country has been made worse by the high unemployment figures which is put at about 25%. Those supporting the withdrawal of fuel subsidy are not bothered about these facts. In most cases, they were simply carried away by government’s promises of what it intends to do with the money saved from the exercise. Others were touched by the opinion that it will help curb corruption. There is nothing wrong in all of these excepting the fact that they all failed to realise the consequences of ignoring the the prescription of the constituition in fighting corruption. Without doubt, the constitution is very clear about how to fight and punish corruption. It was therefore absurd for some persons, including Okonjo-Iweala and Lamido Sanusi to claim that members of the cabal are too powerful and cannot be tamed by the laws of the country. This is a shame. It was based on their wrong conviction that they advised the president to abandon the constitution and use the removal of subsidy to “punish” fuel importers that usually steal our common wealth in the name of fuel subsidy. This writer is glad that President Jonathan has identified this big lie and ordered the EFCC to investigate all fuel subsidy payments. This is the best way to deal with corruption- not using the masses as cannon-fodders.
My other argument was that it is government’s duty to keep our refineries working in order to avoid the importation of petroleoum products. Therefore, if it cannot do that, it should accept the burden of paying the subsidies and stop transferring the burden on the poor Nigerian masses. I had also argued that just as there are many ways to kill a rat, there are equally many ways to remove fuel subsidy. Of all the options, I had suggested that government pick that which will protect the interests of the 70% that are living below poverty line. Unfortunately, the option prescribes by Okonjo-Iweala and Lamido Sanusi was designed in line with the World Bank and IMF dictate. As in most instances with World Bank and IMF-prescribed fiscal policies, the 1st January announcement did not take into consideration the fact that over 100m Nigerians are waist deep inside the mud of poverty. It was for this reason I suggested that government choose a pro-masses option to remove fuel subsidy by ending the importation of fuel. No doubt, we will have no need to import petrol and pay subsidies if our refineries are working at full capacity. Nigerians should ignore the argument in some government quarters that our four existing refineries cannot produce to meet local consumption. This is a lie sponsored by the so-called cabal to mislead both government and the citizens of this country to validate the reason to continue importing and collecting subsidy for fuel imports.
While I hail President Jonathan for the exhibiting the courage of a true democrat, the Labour and civil society is encouraged to accept government’s offer with both hands. For one, those who stole our common wealth in the name of fuel subsidy will be brought to book. On the other hand, government should stop painting the shameful picture that it is incapable of stopping the cabal from looting our national treasury. All those involved in sharp practices, not minding their status in society should be made to face the law. This is one way government can win the confidence of Nigerians. No government; despite the genuine intentions of the leaders would succeed without the support of the people. I do not also want to believe that there are no credible Nigerians to keep the cabals at bay in handling the subsidy scheme while our refineries are being rehabilitated.
To all those who give blind support to political leaders based on ethnic, religious, or political reasons; I want to say the time has come for change. In shifting grounds, the president has practically confirmed the fact that the interests of masses are important to him. His aides and all those who claim to love him should not reason otherwise. In forming our opinions, let us always keep in mind our brothers and sisters that are deep inside the dirty mud of poverty. This is one way we can be our brothers’ keepers.
But above all, I want reiterate that many of President Jonathan’s aides are not of any help to him. Some of them are working to destroy him from inside. Some of these persons have sympathy for Boko Haram. Others simply give advises or prescribe fiscal policies that will pitch the masses against him. This is the reason why he must be careful.
Right from the beginning when government announced the official withdrawal of fuel subsidy, I had come out to say, those who are appauding the decision do not love President Jonathan. I was convinced that this was not how democratic political leadership should be. There must be a linkage between vision and the people. The reason for my opinion is this: Democracy is centered around the people. Everything must therefore be done to protect the interests of the masses, most of whom cannot afford just one decent meal a day. The bitter truth is that the socio-economic framework of Nigeria is still too weak to sustain a further weakening of the purchasing power of the majority of citizens. The upward adjustment in the pump price of petrol by over 100% unarguably distorted the expenditure calculations of every Nigerian family, leaving the poor among us to hang on to gloom for survival.
According to statistics announced by the CBN governor, Mallam Lamido Sanusi, over 70% of Nigerians are living below poverty line. It meant that these Nigerians cannnot rely on their legitimate incomes to provide food, shelter, education, transport, and health care for their families. Apart from the problems of poor socio-economic infrastructure, the poverty situation in the country has been made worse by the high unemployment figures which is put at about 25%. Those supporting the withdrawal of fuel subsidy are not bothered about these facts. In most cases, they were simply carried away by government’s promises of what it intends to do with the money saved from the exercise. Others were touched by the opinion that it will help curb corruption. There is nothing wrong in all of these excepting the fact that they all failed to realise the consequences of ignoring the the prescription of the constituition in fighting corruption. Without doubt, the constitution is very clear about how to fight and punish corruption. It was therefore absurd for some persons, including Okonjo-Iweala and Lamido Sanusi to claim that members of the cabal are too powerful and cannot be tamed by the laws of the country. This is a shame. It was based on their wrong conviction that they advised the president to abandon the constitution and use the removal of subsidy to “punish” fuel importers that usually steal our common wealth in the name of fuel subsidy. This writer is glad that President Jonathan has identified this big lie and ordered the EFCC to investigate all fuel subsidy payments. This is the best way to deal with corruption- not using the masses as cannon-fodders.
My other argument was that it is government’s duty to keep our refineries working in order to avoid the importation of petroleoum products. Therefore, if it cannot do that, it should accept the burden of paying the subsidies and stop transferring the burden on the poor Nigerian masses. I had also argued that just as there are many ways to kill a rat, there are equally many ways to remove fuel subsidy. Of all the options, I had suggested that government pick that which will protect the interests of the 70% that are living below poverty line. Unfortunately, the option prescribes by Okonjo-Iweala and Lamido Sanusi was designed in line with the World Bank and IMF dictate. As in most instances with World Bank and IMF-prescribed fiscal policies, the 1st January announcement did not take into consideration the fact that over 100m Nigerians are waist deep inside the mud of poverty. It was for this reason I suggested that government choose a pro-masses option to remove fuel subsidy by ending the importation of fuel. No doubt, we will have no need to import petrol and pay subsidies if our refineries are working at full capacity. Nigerians should ignore the argument in some government quarters that our four existing refineries cannot produce to meet local consumption. This is a lie sponsored by the so-called cabal to mislead both government and the citizens of this country to validate the reason to continue importing and collecting subsidy for fuel imports.
While I hail President Jonathan for the exhibiting the courage of a true democrat, the Labour and civil society is encouraged to accept government’s offer with both hands. For one, those who stole our common wealth in the name of fuel subsidy will be brought to book. On the other hand, government should stop painting the shameful picture that it is incapable of stopping the cabal from looting our national treasury. All those involved in sharp practices, not minding their status in society should be made to face the law. This is one way government can win the confidence of Nigerians. No government; despite the genuine intentions of the leaders would succeed without the support of the people. I do not also want to believe that there are no credible Nigerians to keep the cabals at bay in handling the subsidy scheme while our refineries are being rehabilitated.
To all those who give blind support to political leaders based on ethnic, religious, or political reasons; I want to say the time has come for change. In shifting grounds, the president has practically confirmed the fact that the interests of masses are important to him. His aides and all those who claim to love him should not reason otherwise. In forming our opinions, let us always keep in mind our brothers and sisters that are deep inside the dirty mud of poverty. This is one way we can be our brothers’ keepers.
But above all, I want reiterate that many of President Jonathan’s aides are not of any help to him. Some of them are working to destroy him from inside. Some of these persons have sympathy for Boko Haram. Others simply give advises or prescribe fiscal policies that will pitch the masses against him. This is the reason why he must be careful.
Thursday, January 5, 2012
Fuel Subsidy: Reasons behind its removal
It is important that we understand why Government has decided to remove fuel subsidy.
Reason No. 1:
Government do not have the capacity to generate enough revenue to fund national budget. This is due to the fact that our economic experts and fiscal policy formulators are dry of ideas. If not so, there are many other ways to generate revenue without hurting the masses. The removal of fuel subsidy is killing the masses. Democratic governance is not all about Naira and Kobo. Let us think of better ways to fund national budget.
In this regard, government should reduce the size of governance, cut the salaries and allowances of elected and political office holders by 50%, introduce a Wealth Verification legislation, and tax the wealthy. Visit my blog http://nigeriademocracywatchtower.blogspot.com for more details on this issue.
Reason No. 2:
Government is unable to curb corruption in the oil sector. A minority but powerful cabal has taken over the NNPC and all its subsidiaries. This cabal actually decides the fate of Nigeria, since we depend on oil for national development. The cabal is so powerful that no one dares them. They have systematically ruined our refineries so as to promote the fuel-import business where they make billions of naira in illegal deals. Though, government is aware of this, there is no courage to confront them. The safest thing it could do was to remove subsidy. In doing this, government is using the masses as cannon fodders to fight corruption in the NNPC. This is wrong. We cannot afford to sacrifice the poor suffering masses to fight the cabal. We are all aware of the pains Nigerian masses are suffering owing to the jump in the prices of goods and services.
The palliatives as announced by government will not do much. This is because, Nigeria is still largely rural. This will make it impossible for the palliatives to get across. Take for instance the issue of 1,600 diesel powered buses that will be distributed across the country. Apart from the fact that many rural areas do not have roads that these buses will ply, who will regulate the fares that the transporters will charge since the loans will be paid back in five years time?
It is most painful that while other nations are designing fiscal policies that will strengthen the purchasing power of citizens, we are doing the direct opposite here in Nigeria.
The governor of the CBN, Lamido Sanusi said 70% of Nigerians are living below poverty line. Ironically, this same Sanusi believes that these poor Nigerians can withstand a further weakening of their purchasing power. My opinion is that Nigeria's socio-economic framework is still too weak to withstand any devaluation of the pocket-worth of the 70% poor Nigerians. Government should first fix the power problem, make our four refineries operate at optimum capacities, reduce corruption, and make our public infrastructures functional to stimulate economic growth. This will reduce poverty and create new jobs that will be sustainable.
I also do not agree that it is only the rich that benefit from fuel subsidy. We do not need to tell lies in order to make our argument look attractive. Based on the meager resources at their disposal, it is the poor that actually benefit more from the fuel subsidy. Now that it has been removed, we can appreciate the wisdom in my argument.
Reason No. 1:
Government do not have the capacity to generate enough revenue to fund national budget. This is due to the fact that our economic experts and fiscal policy formulators are dry of ideas. If not so, there are many other ways to generate revenue without hurting the masses. The removal of fuel subsidy is killing the masses. Democratic governance is not all about Naira and Kobo. Let us think of better ways to fund national budget.
In this regard, government should reduce the size of governance, cut the salaries and allowances of elected and political office holders by 50%, introduce a Wealth Verification legislation, and tax the wealthy. Visit my blog http://nigeriademocracywatchtower.blogspot.com for more details on this issue.
Reason No. 2:
Government is unable to curb corruption in the oil sector. A minority but powerful cabal has taken over the NNPC and all its subsidiaries. This cabal actually decides the fate of Nigeria, since we depend on oil for national development. The cabal is so powerful that no one dares them. They have systematically ruined our refineries so as to promote the fuel-import business where they make billions of naira in illegal deals. Though, government is aware of this, there is no courage to confront them. The safest thing it could do was to remove subsidy. In doing this, government is using the masses as cannon fodders to fight corruption in the NNPC. This is wrong. We cannot afford to sacrifice the poor suffering masses to fight the cabal. We are all aware of the pains Nigerian masses are suffering owing to the jump in the prices of goods and services.
The palliatives as announced by government will not do much. This is because, Nigeria is still largely rural. This will make it impossible for the palliatives to get across. Take for instance the issue of 1,600 diesel powered buses that will be distributed across the country. Apart from the fact that many rural areas do not have roads that these buses will ply, who will regulate the fares that the transporters will charge since the loans will be paid back in five years time?
It is most painful that while other nations are designing fiscal policies that will strengthen the purchasing power of citizens, we are doing the direct opposite here in Nigeria.
The governor of the CBN, Lamido Sanusi said 70% of Nigerians are living below poverty line. Ironically, this same Sanusi believes that these poor Nigerians can withstand a further weakening of their purchasing power. My opinion is that Nigeria's socio-economic framework is still too weak to withstand any devaluation of the pocket-worth of the 70% poor Nigerians. Government should first fix the power problem, make our four refineries operate at optimum capacities, reduce corruption, and make our public infrastructures functional to stimulate economic growth. This will reduce poverty and create new jobs that will be sustainable.
I also do not agree that it is only the rich that benefit from fuel subsidy. We do not need to tell lies in order to make our argument look attractive. Based on the meager resources at their disposal, it is the poor that actually benefit more from the fuel subsidy. Now that it has been removed, we can appreciate the wisdom in my argument.
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