Fuel subsidy and matters arising

The likes of Bayo Onanuga, Festus Keyamo and Femi Fani-Kayode (FFK) should be seriously cautioned to stop insulting those who don’t agree with their political views, and cease condemning those who believe that Igbo people are equal citizens of the nation. Nigerians are experiencing enough suffering caused by the poor performance of those who are […]

The likes of Bayo Onanuga, Festus Keyamo and Femi Fani-Kayode (FFK) should be seriously cautioned to stop insulting those who don’t agree with their political views, and cease condemning those who believe that Igbo people are equal citizens of the nation.

Nigerians are experiencing enough suffering caused by the poor performance of those who are never voted for, but are appointed into public office and prosper by embracing inconsistency of principles, a lack of humility and prioritizing self-interest over public interest. Their inconsistencies and shifting stances to further their interests are a matter of public record. 

All rapid political jobbers supporting the three main candidates should mind their language, not stir up further ethnic hatred and bigotry, hold their peace, and wait for the Supreme Court judgment. Nigerians can only hope that whatever they decide will not be ridiculed,  and will stand the test of logic and general acceptability, unlike their decisions in the cases of Imo State Governor Uzodimma, and Senate President Lawan. 

While the nation waits, life has to go on. A most pressing matter, second only to the man-made, suffering caused by the Central Bank of Nigeria (CBN) Governor Emefiele’s disastrous cash policy is the matter of fuel subsidy and petrol scarcity. Subsidy was first introduced in 1973 as a palliative to cushion landing costs of importing fuel while turn-around maintenance was being carried out on our refineries.

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Quite outrageously in 2023 Nigeria doesn’t have a single functional refinery, yet the NNPC is constructing mighty edifices, sending staff to overseas training, purchasing luxury vehicles, and paying senior staff dollar salaries! Meanwhile, as fuel scarcity continues, available fuel sells for between N250 to N300 per litre against the official price of N165 and yet the government is paying “subsidy”. It’s a tragi-comedy! 

In 2016 the Buhari administration made no budgetary provision for subsidy and fuel sold for N145 per litre.  Surprisingly in 2017 they made a U-turn, re-introduced subsidy allegedly to benefit certain individuals and also increased pump prices without any explanation on why NNPC should not be the sole importer of fuel. At the time legal luminary Femi Falana correctly argued that: “In view of the illegality, insensitivity, and immorality of the price increase, the federal government should cancel it.” 

For reasons best known to him, President Buhari has kept the portfolio of Minister of Petroleum to himself since being sworn in. This was never a good idea.

High-level fraud is indicated because subsidy payments are supposed to be dependent on consumption, yet an increasing amount is being paid while there is fuel scarcity! In 2022 the House of Representatives alleged that more than $10 billion has been stolen through fraudulent subsidy claims.

Honourable Sergius Ogun pointed out that whereas the consumption rate of petrol was estimated at 45 million litres per day, the NNPC paid for up to 100 million litres per day! Furthermore under-reporting pump prices by between N37 and N39 per litre translated into more than N70 billion a month! 

In 2000 President Obasanjo tried to remove subsidy arguing that the cost was prohibitive, but was unsuccessful due to labour protests. In 2011 President Jonathan also tried and was unsuccessful because of nationwide protests led by the very same people who, now want to remove it!

In 2012 the current President-elect Bola Tinubu himself led a protest against subsidy removal based on the suffering it will cause. Now he has promised to remove it, claiming that subsidy payments make it difficult for the government to have adequate funds to provide basic social amenities and critical infrastructure. This is fallacious. There is no evidence that the current crop of politicians has any motivation other than self-interest.

Despite the economic downturn, they have made no attempt to curtail their self-granted luxuries or unjustifiable salaries in order to improve people’s lives, indeed they are asking for more!

Governors continue to grant themselves outrageous immoral pensions and gratuities, the president continues to gallivant around the world using a fleet of unnecessary costly aircraft, while all top government officials receive medical treatment overseas despite spending more money on the Aso Villa Clinic than on any of the nation’s teaching hospitals! 

The past record and actions of Nigeria’s political class do not inspire confidence that if given more money they will spend it for the benefit of the people rather than on themselves, their families and cronies. 

Removal of subsidy is expected to increase the price of fuel to around N700 per litre and although government says they intend to introduce palliative measures, there is no reason to believe that these will not end up as avenues for treasury looting in the same manner as COVID-19 relief materials, the School feeding programme, Trader-Moni, and the ridiculous cash-handout policy.

While it’s true that the subsidy regime, as operated, has only enabled subversion of the nation’s crude oil revenue, it’s also true that when those who don’t know how to manage public affairs somehow wangle their way into office and fail miserably to execute policy, the Nigerian public are left to suffer the consequences, pick up the pieces, and continue to struggle in life, while those responsible for the mess go on to live lives of luxury!