Opinion
That Controversial Petroleum Subsidy
There seems to be a cold war in Nigeria now between some political class in support of the federal government proposed plan to remove petroleum subsidy, the masses, and the Nigerian Labour Congress (NLC), is trying to remove a venom from a cobra snake without any protection. The reminiscence of this type of controversy reminded us of the days of the IMF loan debate during the former military President Ibrahim Babangida regime where Nigerian views were discarded for personal aggrandizement. Presently, the subject matter of the hullabaloo is the purported removal of subsidy by the federal government. This quagmire may be like the university strike. Subsidy is a form of protectionism or financial support given to individual or group of business people to assist them to subsidize the price of an item or product for the benefit of all. Unfortunately, there had been a strong bond between the federal government and the independent petroleum marketers with unnecessary confidentiality in this importation of fuel making Nigerians to be very skeptical on the financial assistance to the petroleum marketers. For sometime now, importers of fuel, kerosene and diesel have enjoyed huge some of money from the federal government in the name of subsidy. They had formed cartel and can hold the country to ransom because the importation of petroleum product is not liberalized just like cement, sugar, bulding materials and other crucial items left in the hand of government loyalist. In truism, Thomas Wolsey introduced subsidy to England in 1513, and it was aimed at supporting an enterprise regarded as being in the public interest. It is a fact that all over the world, the basic reason for the formation of government is for the welfare of the people and Nigeria will not run contrary to such celebrated view even though they have failed us many time. Government will therefore continue on its social services and circumvent form any business entrepreneurship because of the very corrupt tendencies in our political leaders. Following the shocking revelation of corruption in Nigeria one might find it very difficult to believe that the federal government uses $4.5bn annually as oil subsidy. The whooping figure has no explanation as to who gets what and why, it is a mere assumption and Nigerians should not accept it without a proper probe. Nigerians should know how much money is shared among the independent marketers and why. Because there are powerful forces in Nigerian National Petroleum Corporation, (NNPC) and some top government representatives who are feeding fat on this fuel importation. The implication is that this importation of petroleum product is a private business and not a public one. If so, why should the government not use its federal might and remove all of the encumbrances hindering the markets? Furthermore, there must be a clear understanding and demarcation between liberalization, deregulation, privatization and removal of subsidy because the political class takes delight in inventing political terminology that means opposite of what they say. We must therefore be vigilant and careful not to be poison by their philosophies and propaganda. Any additional pump price above N70 per litre is exploitation and suicidal of the masses. In the days of President Olusegun Obasanjo, public companies were sold to his “Political Associate” in the name of privatization to the detriment of the public and we are yet to benefit. Nigerian retirees are the worst scenario as they are being tormented by the same government they served. Recently, the Minister of Petroleum, Dr. Rilwanu Lukeman has stated in London during an interview that the four refineries in Nigeria will soon work because there is maintenance presently taking place now, the question is, why is the hurry to remove subsidy since importation will soon stop or reduce? We should not forget in a hurry how former President Obasanjo and former Senate Deputy President, Ibrahim Mantu joint venture on palliative measure during the constant increase in fuel price ended. In the area of good governance, whether at federal, state or local government level, one will be astonished that the government is not implementing the budget item by item and these has given room to mismanagement of our resources. Few months now to the end of year and some ministries and government agencies are yet to receive any money from their expected budget estimate, how would the government explain this? While others will return huge some of what they call unspent money back to government, some of the monies will be lost in transit, that is why we need transparency in the system of governance to transform the society. In fact, deregulation is not the removal of subsidy as it is currently presented by some government media. Opposing the dreaded deregulation, the Central Bank governor, Mr. Lamido Sanusi has warned that even the deregulation will increase the inflation rate in the country for now. The campaign by the federal government for the removal of subsidy is deceptive, camouflage and a time bomb and this will increase price of fuel. May be President Yar’Adua is dancing the drumbeat of another person. In the business of petroleum every body makes gain. Can the Nigerian government make bold to say that they are not making profit? From all indication, there will be a great calamity if the subsidy is removed hastily because the nation will stagnate, everyone will be effected and every sector of the economy will rot. The government must wake from its slumber to know that every new national energy policy must begin not with investment, but with the truth. Countries of the world, whether developed or developing nations are using subsidy as a tool for greater welfare of the people. The N70 billion naira injected into the textile industry by the federal government was form of subsidy too. No doubt, the removal of subsidy at this material time will cause panic, commotion and the Seven-Point Agenda of President Umaru Musa Yar’Adua will be like a mirage. This situation may be regrettable and degenerate into the ritualistic strike often encouraged by government. Equally, a decision like removal of subsidy can ginger the public against the winning party making opposition party to take power gradually since 2011 is just within the corner. Those sugarcoated mouth pushing for removal of subsidy are enemies to the majority of Nigerians. Apparently, the Senators of the Federal Republic of Nigeria have cautioned the government on the dangers of subsidy for now. If the only tangible reason given for the removal of subsidy is based on freight charges, port charges, cost in insurance and cost of bridging, the question is, who collect all these charges on behalf of the federal government. It means that the N640 billion subsidies paid in a single year is rhetoric, unrealistic and fraudulent. On the issue of deregulation, government can make law on building of mini refineries as a prerequisite for a new prospecting company to do business here. Pius Dukor writes from Port Harcourt. Pius Dukor
Opinion
Humanity and Sun Worship

Opinion
When Global Peace Hangs In The East

Opinion
Balancing Religious Freedom and Community Rights

Quote:”Communities have rights to peace, safety, and quality of life. Noise pollution, crowds, or other impacts from religious activities can affect these rights. Balancing these interests requires consideration and dialogue”.
-
Politics3 days ago
2027: Bayelsa APC Adopts Tinubu As Sole Candidate … As Lokpobiri, Lyon Shun Meeting
-
Sports3 days ago
GOtv Boxing Night 34 holds Dec. in Lagos
-
Sports3 days ago
WCQ: NFF Denies Post Match Statement
-
Politics3 days ago
Alleged Smear Campaign Against Yakubu, CSOs Demand Apology From Uzodimma
-
Politics3 days ago
2027: Jega Condemns Premature Campaigns, Blames Elected Officials
-
Politics3 days ago
Why INEC Can’t Punish Politicians For Early Campaigns – Yakubu
-
Politics3 days ago
Stopping Natasha’s Resumption Threatens Nigeria’s Democracy – ADC
-
Sports3 days ago
Gov. Decries Delta’s Poor Performance At 2025 NYG