Opinion
What Fuel Subsidy Removal Really Means
A few years ago Nigeria was listed in some quarters as a most flamboyant and profligate country. That was a time when Chief Olusegun Obasanjo said that “We are spending money like a drunken sailor …”
Before his death, late Chief Obafemi Awolowo had warned that the Nigerian currency was sliding into the status of tissue paper. An economic expert listed profligate spending habits as including huge hotel bills and foreign travels by government officials, purchase of exotic cars, state sponsorship of pilgrimages, lavish spending on funs, funerals, parties, entertainments, etc; frauds in high quarters, abuses in the management of foreign loans and living on credit facilities.
Despite the introduction of “austerity and belt-tightening” measures as state policies to curb profligate spending, there were no changes in habits or conditions. Today, even with the biting effects of past flamboyance and profligacies, there is no indication that we have learned anything from the past or turned a new leaf. Usually, hike in the prices of petroleum products is a ready means of raising money when the economy begins to bite hard. Nigerians were told that since we spent more money to consume a bottle of “Coke” soft drink, it was sound economics to divert such money for same content of petrol. Choose between Coke and petrol!
It is an irony of the nation’s sense of humour that the apostle and advocate of the “Coke and Petrol” equalization policy, became indicted for being responsible for the nation’s economic adversity, by drinking a cup of tea and accepting a gold wrist watch as gift from foreigners. Today, rumours about possible increase in the price of petroleum products are associated with taming the economy by the removal of fuel subsidy. Subsidy is our problem!
The logic about Coke and petrol price equalization was also applicable in subsidizing the cost of transportation of petroleum products across the country, to ensure that the price remains same every where. A driver operating in Eleme must buy fuel at the same price as the driver operating in Damaturu. Call it price quotarisation and equalization policy, whereby the cost of delivery of fuel is passed on as a collective tax. The logic of fuel subsidy expresses the endemic corrupt practices in the country. A clevery system of corruption and parasitism!
The most glaring and annoying aspect of the fuel subsidy issue is not in the production cost but in the consumption pattern. If we consider the fact that there are innumerable government officials using or controlling between three to ten vehicles each, all fueled at tax payers’ expense, then we can see a different meaning in the issue of fuel subsidy. Subsidy is defined as “money that is paid by a government or organization to make prices lower, reduce the cost of production of goods,” etc. In our case, subsidy translates into indirect increased taxation, to maintain a parasitic political economy, where the docile masses bear the brunt.
We have not faced the issues of corruption, mendacity and deceit as instruments of governance, with seriousness and honesty, as the issues deserve to be faced. Part of the demand by the International Monetary Fund (IMF) on Nigeria to remove fuel subsidy completely, is a part of the call for transparency in governance. The issue of transparency in governance is most glaring in the oil and gas sector of which the subsidy sing-song is the stump.
Needless to revisit the issue that there are ruthless predators and parasites, within and outside Nigeria, who have held this country hostage since 1970, with regards to the oil and gas sector of the economy. Unfortunately, the intellectual and political class of Nigerians is so docile or complicit that they can be easily out-witted or bought over by the faceless cabals that claim to own Nigeria and its resources. Are we not held hostage?
The strategy of control has been to use the forum of the nation’s lawmakers as a safety valve, to ensure a stability of the polity, through scandalous remunerations and patronage. When each Nigerian senator gets emoluments estimated to be four times the salary of the President of America , then we must ask who they are being asked to protect. Removal of fuel subsidy means removal of the hidden costs of maintaining an oligarchy under the guise of a democracy. Who is paying to support who?
Dr. Amirize is a retired lecturer at the Rivers State University, PH.
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Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
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