I watched the news to see a few Nigerians blindly chanting that the removal of subsidy is for the benefit of Nigerians, all because they wanted to reopen their shops. I laughed. This goes a long way to show our gross disunity. If Egypt and Tunisia got tired of their protests and revolution, would they boast now of having a platform that allows them to choose the government they want?
I am not against the policy as you may have judged from my article, but I strongly hold that there are better ways of implementing it, to make it work in Nigeria. There are however, solid facts that I want you to consider and then judge for yourself if this government can deliver its promises.
I supported President Jonathan – even though my location did not allow me vote – for sentimental reasons and so did the majority of Nigerians; but I still do support him. I was also of the opinion that after former President Obasanjo, Nigeria shouldn’t have another president that was a past military president. But during his campaign I was not comfortable with the amount of money President Jonathan expended, paying artistes, organizing rallies and mobile carnivals. This money was obviously sourced from public funds. As painful as this may sound, President Jonathan has weak links that portray him as corrupt. For instance, members of the houses of assembly resisted vehemently when the CBN governor, Sanusi Lamido Sanusi presented facts that showed that the cost of running this government was guzzling about 25% of the country’s budget. Nigerians are well aware of the unwarranted multimillions that the presidency, senators, legislators and ministries accrue to themselves as salaries and allowances and how they unjustly devalue the official vehicles assigned to them only to repurchase them at alarming diminished prices. It’s open news now that the president allocates One billion Naira to himself as feeding allowance annually. My calculation shows that if you spend N30, 000.00 per day, it would take you 80 years to expend ALMOST a billion naira; the figure is N876,000,000.00 or N876,600,000.00, considering the leap years. You can do the calculations yourself to confirm.
Within its practical two years of inception, I did not expect this government to transform agriculture or power; these are monumental achievements that take time. However one task that was very feasible was to fight corruption to the letter. If this singular act was achieved, a vote of trust would have been bestowed on this government.
Consider these realities:
PHCN makes profit annually from bills being paid; where does this money go to?
The Water Board also makes money from its services; where is this money being lodged?
Governor Fashola of Lagos has provided satisfactory evidence that government can generate income from tax. The FIRS generates income yearly from taxes; where is this money?
What about the money the Customs make from import duties?
How about the Immigration, FRSC and other government institutions that generate money in various capacities?
Currently as we speak, some elite Nigerians have licences to mine solid minerals in diverse parts of the country; these minerals, like crude, should be the sole property of the federal government.
Nigeria recovered monies from misappropriated funds, to the tone of $380M from the Obasanjo tenure till now; where is the evidence of that money now? These go to show that the government has abundant alternative sources of income without having to touch the subsidy money.
Can this government conveniently prosecute former President Obasanjo and other government officials who committed gross crimes of corruption in the near and distant past? Governments in Nigeria have a very amusing practice of claiming to forgive leaders with glaring corrupt records as recorded by the EFCC, yet most of these individuals like Senators Ahmed Mohammed Makarfi and Sani Yerima, both former governors of Kaduna and Zamfara States respectively, still served in government offices, and now walk liberally as free men. Several others like Lucky Igbenedion, Ikedi Ohakim, Orji Uzo Kalu, Peter Odili and many others are still walking freely. This is ridiculous! When God directly governed Israel in the past, evildoers were punished for their crimes. Even though we know God to be merciful, He is also a just God. The United States of America is known to investigate crimes as old as thirty years and over, and prosecute as well as punish the offenders accordingly. Several other countries have this same appropriate practice of adequately punishing criminals. Nigeria callously sweeps these crimes under the carpet and what’s the result – more daredevil criminals emerge, crime prevails and the countries’ economy suffers.
Nigerians are not opposed to the removal of subsidy, but in the manner of its implementation. This government and previous ones before it have always shown grave disregard for the Nigerian people. It was clear that the subsidy removal was still being deliberated on and then a day after the president declares a state of emergency in fifteen Local Government Areas in four states of the federation, an indication that the nation was in a delicate situation, we get the shocking news of the subsidy removal. Many Nigerians still remain stranded in their villages due the consequent transportation price hike; given the economic severity of the month of January in Nigeria, the government only succeeded in replacing one crises – the Boko Haram menace, with another. And while previous governments have failed in their promises, this government has acted very similarly; so how does it expect any trust from Nigerians? If an individual was served a meal of a particular kind of vegetable from two distinct sources at two separate times, and on both occasions this individual ends up severely sick, do you think such a person will ever eat any other kind of green vegetable? Answer is NO. A person like that will in fact, naturally become repulsive to anything green. We have a proverb that a snake will naturally beget something long. The plans for the subsidy money are very juicy and welcome, and in fact portray the expectancy of Nigerians from any government. But the fact that this government possesses traits of failed previous dispensations as well as corrupt members opposed to development who served in previous dispensations, it stands on a knife-edge that makes its plans prone to failure. The NLC and its associates and the Nigerian people are therefore within their rights to demand that the government reverts to N65.00 per litre – the point of deliberations – before they engage in dialogue.
This government did not just discover the corrupt cabals and their activities overnight; it has been aware of them for a considerable period of time. It should therefore have confronted them all along.
Arguments are made that neighbouring Ghana also implemented removal of subsidy without complaints and so questions why Nigerians should. Study the mode of implementation in Ghana. Ghana DID NOT remove subsidy in one blow. The Ghanaian government has been removing its subsidy in installments of 20% over a period of time, using these monies to develop aspects of the economy at a gradual pace. What was removed on 29th December, 2011 was the last installment. So you see that an excellent and very humane approach was employed. The Igbos have a proverb: You first of all chase away the leopard before you begin to remonstrate with the wayward hen for venturing so far into the forest. Another proverb says: You do not get rid of the baby along with the bathe water. In both cases the proverbs indicate that you have an asset in a threatening situation, but you don’t punish your asset in a bid to deal with the threat. In the light of the present crisis, it means that the government cannot punish its asset – the masses, to deal with the crisis – corruption (or the oil cabals).
The Nigerian government should have employed this very same method, while in the process, tackling the activities of the cabals radically; like revoking their importation licence, and rightfully charging them to court on charges of short-changing and exploiting the government as well as other relative crimes. The government can then proceed to engage new interested importers on very strict contract agreements, for instance, a condition that guarantees their balance payments only when the accurate volume of fuel has been ascertained to enter government storage. The government could even create its own importation outfit. Whichever method is employed should be made transparent by involvement of non-governmental institutions like the NLC, TUC, Civil Society, etc, who will help monitor the distribution of these products down to the public. While this is going on, a severe war on corruption should be engaged on corrupt practices in all sectors. If five to ten prominent individuals are investigated, prosecuted and incarcerated within a short period, intending and existing individuals with corrupt intentions would take caution and be kept at bay.
While taking away the subsidy may seem a plausible way of confronting the cabals, I see a gaping loophole. As long as they remain free, these cabals will embark on methods to hijack oil products from within. The subsidy project would therefore have been defeated. The best way to proceed is as described above, similar to what the NLC, TUC and Civil Society are suggesting.
On a final note, I appeal to the government to stop wasting valuable money on television jingles and billboard adverts encouraging Nigerians to be peaceful and law-abiding. While this practice is the norm in Nigeria, I say that it is non-effective. Peace is not something you can cajole a person or people into. Peace is a product; it is the product of Justice. When there is justice, peace follows naturally. The human psyche if unrefined is prone to crime. But when people know that regardless of their status social or otherwise, their crimes under a just society are adequately punished by an unbiased law, the mind starts to work in the opposite – more productive – dimension; which happens to be Peace. We make a lot of reference to America. America did not coax its citizens into accepting peace. She simply enforced a law that works and people began to trust the law and to engage in peaceful living.
Saturday, January 14, 2012
Thursday, January 5, 2012
NIGERIA - ON THE REMOVAL OF FUEL SUBSIDY
While the Federal Government has made good its decision to withdraw the fuel subsidy, it would be in the best interest of the entire Nigerian populace that the government revisits its decision and make adequate readjustments before the country erupts in utter chaos. Whatever discussions and talks the NLC would be holding with the government, it is paramount to note that taking away one hundred percent of the subsidy is a completely wrong move.
I have listened to several arguments opposing and supporting the removal of the fuel subsidy. It is unfortunate that initially, most people seemed to only see the austere effects of the removal, on the aspect of transportation alone. Nigeria’s dependence on crude oil has led us to a situation that causes us to experience consequential effects whenever there is a change in the prices of petroleum products, particularly Premium Motor Spirit – PMS. By implication, with the removal of the subsidy, every commodity and I repeat, every commodity in every sector would also experience an increase in prices. I’m talking about monumental increases in the costs of living/housing, food, education, health, etc.
The Federal Government claims that it plans to use the money from fuel subsidy for the purpose of industrialization, the absence of which has be cited severally as the bane of Nigeria’s gross unemployment. This decision I am sure would be welcomed by every well-meaning Nigerian. But there is great need for skepticism.
Firstly, what concrete evidence do we have that this money would be used for the purpose for which it was meant? Nigeria has had a nasty history of taking loans from foreign sources, monies that never served the purposes for which they were meant, but ended up in the pockets and accounts of a very greedy few; what will this insensitive individuals not do to siphon this new fund which happens to be OUR OWN money and immune to international scrutiny? Bear in mind that there are Nigerians whose wealth thrive from the dilapidated state that is presently characteristic of Nigeria’s economy; these individuals would do anything and I mean absolutely anything to keep Nigeria the way she is. Hence these people are sure to thwart or sabotage whatever developmental plans the government has or plans to implement. What concrete measures have been put in place to ensure that while the government carries out her developmental schemes, there are also active machineries to investigate and prosecute any singular move or ambition to sabotage government plans? Absolutely Nothing! The EFCC and ICPC have done very little to nothing, partly because Nigerian laws seem to be void over some individuals, while some others deliberately hamper the activities of these anti-graft institutions. We have heard of many highly placed Nigerians involved in acts of corruption; none of them was successfully prosecuted and punished. I could go on and on listing several diverse avenues that the government has failed especially in its bid for nation building, and tackling corruption that hampers it. There is definitely nothing available to serve as guarantee that the fuel subsidy money would serve its purpose. This is not a fairy tale. This is reality and reality goes with facts. WE cannot give this government any benefit of doubt simply because the President’s name is Goodluck (all due respects to Mr. President). We need facts to prove but unfortunately, this government gave none.
As regards facts, you may wonder what example I have. I am of the opinion that rather than withdraw one hundred percent of the subsidy money, the government should have taken at most seventy percent of it and left thirty percent for at least two years to serve as a cushion to insulate the harsh effects that would emanate from the removal. With seventy percent of the subsidy money, the government can start its programmes and whatever positive results are recorded can serve as surety that the government’s plans are genuine and viable.
Also, why does it always have to be the masses bearing the brunt of every austere measure embarked upon by the government? If the Nigerian government needs money I proffer that it can generate so much from cutting by half, the salaries and allowances of political office holders, beginning from the President himself, down to the Councillor. They too should feel the pinch and make sacrifices too. And as the old Nigerian slogan goes: “They shouldn’t worry; they would suffer now and enjoy later.”
In furtherance to this argument, I purport that given the present harsh economic condition of Nigeria it would be absolutely wise that the jobs in both Houses of Parliament, as well as State Houses of Parliament be stripped of their status as permanent appointments. Senators and Legislators should cease to be direct federal government employees. They should be paid just for their sitting allowance and this through their constituencies. Also, these wages should commensurate with the adequate salary grade level of a civil servant. This way, Senators and Legislators would need to have jobs and businesses of their own, where their true income comes from; the parliamentary jobs in Abuja would no longer be their beds of roses. As a result, they would be truly committed to implementing policies since payment of their wages would depend on their performance. If the members of parliament oppose this decision – as likely they would – the president can sponsor the bill for this purpose and call on Nigerians to a referendum in support of the bill and I can guarantee you that all Nigerians would arise in support of the president.
Millions of Nigerian youth sustain themselves and keep out of trouble by engaging in menial and low-paying jobs run by private entrepreneurs. These make up a good percentage of the unemployed youth that over the years, every government has incessantly proclaimed its plans to keep engaged in order to restrain them from crime. The majority of these jobs pay monthly wages within the range of five and eight thousand naira, and this provides the stipends on which the youths finance their basic needs. With this increase, the bulk of their salaries – about seventy percent – would be spent on transportation alone; some may spend virtually their entire earnings on transport. I don’t see anybody keeping a job like that anymore. Then in time, this development would result in an increase of street thugs and hooligans.
The government of President Goodluck Jonathan should be advised to see things and reason in this light and subsequently revisit and readjust the subsidy removal. There is so much at stake especially the stability of Nigeria. Nigerians have been known to gullibly adapt to harsh conditions. But I do not see how anybody would adapt to a condition that takes away your entire salary on transport alone, with very little to feed on, when you still have housing, health bills, utility bills, costs of dependents, etc, to contend with.
PS: As an afterthought, I wonder if the advisers of President Goodluck Jonathan may have been compromised by diabolical oppositions to his government, for them to have proffered a suggestion like this. What is it now with this importation of diesel engine buses? First, inadequacy of funds was cited as one of the reasons for subsidy removal. Then they come and say in response to the protests they want to import buses. Where is the money for the procurement of these buses coming from? This venture will create an avenue for one individual or group of individuals to squander valuable funds in purchasing sub-standard vehicles that will become crises within three months of usage. How many buses does the government intend to buy to satisfy the needs of the entire Nigerian people? Is this government bent on getting everything wrong?
Please, well-meaning Nigerians are saying, “we understand with the subsidy removal but don’t remove everything yet.” Also, readjust the wages of the members of both national and state houses of representatives and the government will realize a copious amount of money at its disposal.
I have listened to several arguments opposing and supporting the removal of the fuel subsidy. It is unfortunate that initially, most people seemed to only see the austere effects of the removal, on the aspect of transportation alone. Nigeria’s dependence on crude oil has led us to a situation that causes us to experience consequential effects whenever there is a change in the prices of petroleum products, particularly Premium Motor Spirit – PMS. By implication, with the removal of the subsidy, every commodity and I repeat, every commodity in every sector would also experience an increase in prices. I’m talking about monumental increases in the costs of living/housing, food, education, health, etc.
The Federal Government claims that it plans to use the money from fuel subsidy for the purpose of industrialization, the absence of which has be cited severally as the bane of Nigeria’s gross unemployment. This decision I am sure would be welcomed by every well-meaning Nigerian. But there is great need for skepticism.
Firstly, what concrete evidence do we have that this money would be used for the purpose for which it was meant? Nigeria has had a nasty history of taking loans from foreign sources, monies that never served the purposes for which they were meant, but ended up in the pockets and accounts of a very greedy few; what will this insensitive individuals not do to siphon this new fund which happens to be OUR OWN money and immune to international scrutiny? Bear in mind that there are Nigerians whose wealth thrive from the dilapidated state that is presently characteristic of Nigeria’s economy; these individuals would do anything and I mean absolutely anything to keep Nigeria the way she is. Hence these people are sure to thwart or sabotage whatever developmental plans the government has or plans to implement. What concrete measures have been put in place to ensure that while the government carries out her developmental schemes, there are also active machineries to investigate and prosecute any singular move or ambition to sabotage government plans? Absolutely Nothing! The EFCC and ICPC have done very little to nothing, partly because Nigerian laws seem to be void over some individuals, while some others deliberately hamper the activities of these anti-graft institutions. We have heard of many highly placed Nigerians involved in acts of corruption; none of them was successfully prosecuted and punished. I could go on and on listing several diverse avenues that the government has failed especially in its bid for nation building, and tackling corruption that hampers it. There is definitely nothing available to serve as guarantee that the fuel subsidy money would serve its purpose. This is not a fairy tale. This is reality and reality goes with facts. WE cannot give this government any benefit of doubt simply because the President’s name is Goodluck (all due respects to Mr. President). We need facts to prove but unfortunately, this government gave none.
As regards facts, you may wonder what example I have. I am of the opinion that rather than withdraw one hundred percent of the subsidy money, the government should have taken at most seventy percent of it and left thirty percent for at least two years to serve as a cushion to insulate the harsh effects that would emanate from the removal. With seventy percent of the subsidy money, the government can start its programmes and whatever positive results are recorded can serve as surety that the government’s plans are genuine and viable.
Also, why does it always have to be the masses bearing the brunt of every austere measure embarked upon by the government? If the Nigerian government needs money I proffer that it can generate so much from cutting by half, the salaries and allowances of political office holders, beginning from the President himself, down to the Councillor. They too should feel the pinch and make sacrifices too. And as the old Nigerian slogan goes: “They shouldn’t worry; they would suffer now and enjoy later.”
In furtherance to this argument, I purport that given the present harsh economic condition of Nigeria it would be absolutely wise that the jobs in both Houses of Parliament, as well as State Houses of Parliament be stripped of their status as permanent appointments. Senators and Legislators should cease to be direct federal government employees. They should be paid just for their sitting allowance and this through their constituencies. Also, these wages should commensurate with the adequate salary grade level of a civil servant. This way, Senators and Legislators would need to have jobs and businesses of their own, where their true income comes from; the parliamentary jobs in Abuja would no longer be their beds of roses. As a result, they would be truly committed to implementing policies since payment of their wages would depend on their performance. If the members of parliament oppose this decision – as likely they would – the president can sponsor the bill for this purpose and call on Nigerians to a referendum in support of the bill and I can guarantee you that all Nigerians would arise in support of the president.
Millions of Nigerian youth sustain themselves and keep out of trouble by engaging in menial and low-paying jobs run by private entrepreneurs. These make up a good percentage of the unemployed youth that over the years, every government has incessantly proclaimed its plans to keep engaged in order to restrain them from crime. The majority of these jobs pay monthly wages within the range of five and eight thousand naira, and this provides the stipends on which the youths finance their basic needs. With this increase, the bulk of their salaries – about seventy percent – would be spent on transportation alone; some may spend virtually their entire earnings on transport. I don’t see anybody keeping a job like that anymore. Then in time, this development would result in an increase of street thugs and hooligans.
The government of President Goodluck Jonathan should be advised to see things and reason in this light and subsequently revisit and readjust the subsidy removal. There is so much at stake especially the stability of Nigeria. Nigerians have been known to gullibly adapt to harsh conditions. But I do not see how anybody would adapt to a condition that takes away your entire salary on transport alone, with very little to feed on, when you still have housing, health bills, utility bills, costs of dependents, etc, to contend with.
PS: As an afterthought, I wonder if the advisers of President Goodluck Jonathan may have been compromised by diabolical oppositions to his government, for them to have proffered a suggestion like this. What is it now with this importation of diesel engine buses? First, inadequacy of funds was cited as one of the reasons for subsidy removal. Then they come and say in response to the protests they want to import buses. Where is the money for the procurement of these buses coming from? This venture will create an avenue for one individual or group of individuals to squander valuable funds in purchasing sub-standard vehicles that will become crises within three months of usage. How many buses does the government intend to buy to satisfy the needs of the entire Nigerian people? Is this government bent on getting everything wrong?
Please, well-meaning Nigerians are saying, “we understand with the subsidy removal but don’t remove everything yet.” Also, readjust the wages of the members of both national and state houses of representatives and the government will realize a copious amount of money at its disposal.
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