Politics
The Politics Of Fuel Subsidy
Politics is defined as the activities associated with the governance of a country or area. It simply involves the sharing of resources within a given geo-political system. It is centred on who gets what, when, where and how.
There is no gainsaying the fact that Nigeria’s economy depends on oil, since over 70% of the nation’s revenue is derived from oil. The nation’s over dependence on oil revenue is the reason why when there is any “cough” from the oil sector the nation shivers or trembles.
The politics of withdrawal or removal of subsidy on petroleum products dates back to the reign of General Ibraham Badamosi Babangida, popularly known as “Maradona”.
The withdrawal or removal of fuel subsidy has severally manifested as deregulation of the down stream sector which results in most cases, an increase in prices of Petroleum products, more benefits or financial gains, not only to government but individuals mostly in oil sector, has been a reoccurring decimal in the nation’s politics right through the governments of General Babangida, late Abacha, Chief Olusegun Obasanjo and late Alhaji Musa Yar’Adua.
It is on good record that anytime attempts were made touching either on the deregulation of the down stream sector or removal of fuel subsidy, Nigerians through the organised labour have resisted it. Hence no government even the dictatorial military regimes have successfully implemented its programme on the issue of fuel subsidy or deregulation of the down stream sector.
This may be as a result of the conflicting interests in the issue bothering on who will gain or get what or lose, if it is fully implemented.
The concept of oil subsidy according to Prof Kayode Soremekun of the Covenant University, Sango Otta, Ogun State derives from a situation in which Nigeria sends her crude oil to other country for refining.
Nigeria has been unable to process her crude oil and sends it to foreign countries which have the strength, the refining capacities and facilities to process the crude into refined products, after which Nigeria now imports same back into the country. By the time crude comes back to Nigeria in refined form, a lot of value would have been added to it. And to that extent, it is bound to cost a lot.
However, according to Prof. Soremekun in the bid to ease the pains of the populace, the government decides to shoulder some of the burdens. This he said is what is called oil subsidy.
The multinationals produce the crude oil, take it abroad, process it and sell same to us.
According to Prof. Soremekun when the government talks of oil subsidy and the removal of oil subsidy she is indirectly saying its inability to manage and maintain its refineries in refining its crude products.
The major beneficiaries of oil subsidy comprise the five oil majors, members of Independent Petroleum Marketers Association of Nigeria (IPMAN), Nigeria Independent Petroleum Company (NIPCO), depot and tank owners and those simply described as feeders.
These groups according to sources have been said to be importing petroleum products to enjoy subsidy from the government and over the years they have been benefiting from the fuel subsidy. They are the five oil majors in the downstream sector, members of IPMAN/NIPCO, owners of depots and tanks and those simply identified as traders.
The federal government led by President Goodluck Ebele Jonathan has recently proposed to remove subsidy on Petroleum products.
The Federal government has said that its aim of removing subsidy was to redirect the money it would save from the withdrawal of subsidy on products that will benefit the citizenry and overall interest of the country.
The federal government has spent more than N600 billion which is more than the N240 billion it budgeted for fuel subsidy this year. It is believed that government would have spent N1.2 trillion by the end of the year.
Backing the removal of subsidy, the Governors of the 36 states including Abuja Federal Capital after a meeting of the National Economic Council (NEC) presided over by Vice President Namadi Sambo on October 6, said subsidy removal was part of the difficult decisions that leaders must take to impact on the people.
The governors said, the gains of the removal would outweigh the pains.
The removal of subsidy the governors opined will save money for the development of the economy and would also provide opportunity for the greater number of people.
As at previous times when attempts were made on this thorny and stormy issue, Nigerians from all walks of life and sectors of the economy, have not been of one voice. This is probably because of the politics of who takes what, how, where and when.
Deputy Senate President Ike Ekweremadu said on Sunday October 16, that Nigerians will be shocked if the list of subsidy beneficiaries is released.
Although the government is reaching out to all the sectors, the National Assembly, organised labour, the organised private sector (OPS) over the inpending fuel subsidy removal, it has convinced a good percentage especially, the common man that the withdrawal of fuel subsidy will not hurt the nation’s hard earned nascent democracy.
There is no doubt that the removal of subsidy at this point in time definitely will result in hike in prices of petroleum products which will have multiplier effect on other sectors – food prices, transportation to mention a few.
The Nigerian Labour Congress (NLC) has already expressed the fear that the planned removal of fuel subsidy will rubbish the new N18,000.00 minimum wage approved by the federal government.
The Nigeria Labour Congress is skeptical of the intention of Government in removing the subsidy when government has just reluctantly implemented the new minimum wage.
The NLC executive reasoned that by removing subsidy, government is indirectly removing or taking back the increase it approved in workers’ salary.
The NLC has therefore vowed to resist the proposed removal of fuel subsidy.
Speaking to The Tide in a telephone interview, on the removal of fuel subsidy, the Archbishop of the Eccelestical Province of the Niger Delta and Bishop of the Diocese of the Niger Delta North, Most Reverend I.C.O. Kattey cautioned President Goodluck Jonathan against being stampeded into removing the subsidy on Petroleum products.
Most Rev. Kattey, a stakeholder in the Niger Delta, advised President Goodluck Jonathan who is from the Niger Delta to be careful with those urging him to remove the fuel subsidy in his tenure which his (Jonathan’s) predecessors, have not succeeded in doing.
He advised the President to remove the subsidy in phases and not at once which he said would minimise the suffering of the people.
In his view, a stalwart of the ruling Peoples Democratic Party (PDP) in Bayelsa State, said “President Goodluck Jonathan should not be used as a scapegoat by detractors of the Niger Delta, especially those who vowed to make his government ungovernable.
The PDP stalwart who preferred not to be mentioned on print said Goodluck Jonathan’s predcessors, who are from the majority tribes, moreover who are not from the oil producing states, have been able to play the politics of deregulation, and withdrawal of subsidy without actually implementing it adding that Jonathan should learn from them. He opined that a Niger Delta man should not be used to bring hardship on the masses.
It is reasoned that Government should first recapitalise the three oil refineries to refine oil locally instead of exporting crude oil to be refined and then import it back and sold on subsidised price.
The implication of subsidy removal according to Prof. Soremekun, is that oil would now be sold at going market rates, so, anytime the dollar goes up the price of oil goes up.
He said if subsidy is removed in countries where oil is not produced like Kenya and Tanzania there would have been no problems but Nigeria produces oil and that she owns the products, so, removing the subsidy he said would be trying to slap God in the face who give Nigeria such a rich natural resources.
A former Minister of National Planning and Finance Dr. Shamsudeen Usman said in May this year, that Nigeria achieved reasonable growth in Gross Domestic Products (GDP) since 1999 but with no significant effect on poverty or unemployment.
Dr. Usman who was speaking at the 2011 May Day lecture said between 1999 and 2009, GDP increased from about 36 billion US dollars to 250 billion US dollars while the number of unemployed people increased from 5.9 million to 17.5 million.
The questions that are begging for answers are how can there be national economic growth with increased national poverty? Why should Nigeria be rated among the World first twenty oil producing countries yet she still imports oil and the average Nigerian is poor? Why Nigeria cannot get her three refineries functional?
The Bible says in Isaiah, Chapter one, verse nineteen that “you shall eat the good of the land”. This means that any national progress must show and impact on her citizens.
Let the natural resources given to Nigeria, by God in form of crude oil be a source of blessing to Nigerians as a whole, not to few.
Soye Young-Itiye
President Bola Tinubu, yesterday in Abuja, swore in the sixth substantive chairman of the Independent National Electoral Commission (INEC), Prof. Joash Ojo Amupitan (SAN).
At the ceremony held at the State House Council Chamber, President Tinubu urged the new INEC Chairman to serve with integrity and beyond reproach.
“Your nomination and the subsequent confirmation by the Senate are a testament to your capacity and the confidence reposed in you by both the executive and the legislative arms of government.
“This significant achievement marks the beginning of a challenging, yet rewarding journey, and I trust that you will approach your responsibility with the highest level of integrity, dedication and patriotism,” the President said.
President Tinubu noted that the country had been on a path of democratic governance and learning since 1999, with notable achievements in the strengthening of various institutions.
“Our democracy has come a long way in 25 years. We have consolidated and strengthened our democratic institutions, particularly in electoral systems, through innovations and reforms.
“We have learned a great deal along the way and have improved significantly from where we were many years ago. We must now remain committed to the principles that underpin democracy in a complex and multifaceted society.
“The electoral process is a vital part of a democracy that grants the people the exclusive right to choose their leaders and shape their future. To ensure that our democracy continues to flourish, the integrity of our electoral process must be beyond reproach,” he added.
President Tinubu stated that the governorship election on November 8, 2025, in Anambra State will serve as a litmus test for the new leadership of the electoral commission.
“It is important that our elections are free, fair and credible. We must consistently improve our electoral process, addressing the challenges of yesterday and innovating for today and tomorrow.
“To maintain public trust in the election, electoral integrity must be protected. All aspects of the process – from registration to campaigning, the media access, voting and counting should be transparent, non–violent and credible.
“No electoral system is flawless, but since elections are vital to a nation’s future, it is essential to continually strengthen electoral institutions, ensuring that they are robust, resilient and safeguarded against artificial setback.
“I therefore charge you, Prof Amupitan, as you take on this important assignment to protect the integrity of our electoral process and strengthen the institutional capacity of INEC.
The swearing-in ceremony follows the Senate’s confirmation of the INEC Chairman’s nomination on October 16.
Amupitan succeeds Prof. Mahmood Yakubu, whose tenure as INEC Chairman ran from 2015 to 2025.
The 58-year-old academic outlined his plans to reform Nigeria’s electoral system, strengthen institutional independence, and rebuild public trust in the commission at the screening.
The new INEC Chairman will assume office immediately.
The House of Representatives yesterday urged the Federal Government, through the Ministry of Housing and Urban Development, to take urgent and decisive measures to curb the growing trend of arbitrary rent increases across the country.
The House, which described incessant rent increment as exploitative and detrimental to citizens’ welfare, took the resolution following the adoption of a motion on notice at Thursday’s plenary, sponsored by the member representing Calabar Municipal/Odukpani Federal Constituency, Cross River State, Bassey Akiba.
Recall that in May 2024, the House passed a similar resolution sponsored by Emmanuel Udo (PDP, Akwa Ibom), calling for rent control and landlords’ regulation within the Federal Capital Territory.
Udo’s motion advocated monthly rent payments and directed the House Committee on the FCT to propose measures to address excessive, reckless increments in rent by landlords.
Across the country, there are reports of a hike in rents, particularly in areas witnessing new government infrastructural projects such as roads and markets.
In the FCT, rents in some neighbourhoods have jumped from ?800,000 to ?2.5 million annually, for a two-bedroom flat; a development that has plunged many Nigerians into economic distress.
Akiba, while drumming support for the bill, argued that “The rise in the cost of living has made it increasingly difficult for families and businesses to meet rental obligations,” warning that “Unregulated rent increments threaten stability in the housing sector.”
While acknowledging landlords’ rights, he noted that tenants’ welfare must be equally protected to ensure fairness and economic balance.
Referencing Section 14(2)(b) of the 1999 Constitution (as amended), the lawmaker reminded his colleagues that the welfare and security of citizens constitute the primary responsibility of government.
He also cited the United Nations Habitat Agenda, which emphasises access to adequate and affordable housing as a basic human right.
Lawmakers present at the plenary voted in support of the motion when it was put to a voice vote by the Deputy Speaker, Benjamin Kalu, who presided over the session.
Consequently, the House urged the Federal Government to “Intensify efforts toward providing affordable housing schemes to ease pressure on the rental market and expand access to low-cost homes.”
It also directed the Federal Ministry of Housing and Urban Development to “Collaborate with state governments in implementing effective rent control policies, ensuring that public infrastructure development does not trigger unjustified rent escalations.”
The House also recommended that any rent review should not exceed 20 per cent of the existing rate, regardless of improvements in facilities.
Furthermore, the House mandated its Committee on Housing and Habitat to ensure compliance and submit a report within four weeks for further legislative action.
The newly sworn-in Chairman of the Independent National Electoral Commission, Prof. Joash Amupitan, SAN, has vowed to restore credibility and public confidence in the country’s electoral system, declaring his appointment as a “divine” call to serve the nation.
Speaking shortly after his inauguration by the President at the State House yesterday, Amupitan declared that his mission was clear — to deliver free, fair, and credible elections while deepening democratic values across the nation.
During his first official meeting with the commission’s directors, he stressed that achieving INEC’s mandate would hinge on teamwork, discipline, and integrity within the institution.
“Our mandate is clear, and what is it? To deliver free, fair, and credible elections that reflect the will of the Nigerian people. To achieve this, we must work together as a team,” he stated.
Addressing INEC staff and directors, the don pledged to uphold the highest standards of transparency and accountability.
“As we mark the beginning of the new chapter, I want to assure you of my commitment to upholding the highest standard of integrity, transparency, and discipline in all our operations,” he said.
Turning his attention to the upcoming Anambra State governorship election, the INEC chairman described it as a defining moment for the commission.
“The upcoming Anambra state governorship election is not just another electoral exercise. It represents a pivot opportunity for us to demonstrate our commitment to free, fair, and credible elections,” he declared.
“The eyes of the nation are upon us, and it is our duty to rise to that occasion.
“Credibility in our election is paramount, and we must ensure that every voter feels confident that their vote will count. Because that is a constitutional task. And let’s restore back the confidence of every voter that whenever there is an election, their vote will count,” Amupitan added.
The don also made staff welfare a central part of his agenda, acknowledging that the commission’s workforce plays a vital role in ensuring credible elections.
“For me, staff welfare is going to be my priority. We are going to be expecting so much from you, so your welfare is going to be a priority.
“We’ll work assiduously and tirelessly to ensure that our working conditions are conducive and that our staff are equipped with the necessary resources to excel,” the INEC chairman assured.
The chairman, accompanied by his wife, children, and senior officials from the University of Jos, expressed gratitude to his academic colleagues who celebrated his appointment.
“I was told that the whole university got shut down out of excitement. One of theirs is now given this very heckling and important responsibility of heading this commission at this time,” he said.
Despite the weight of his new responsibilities, he said he was ready for the challenge.
“The places I’ve gone to, including some national commissioners, they were saying, I don’t envy you. But let me say that I am excited about the journey ahead.
“Together, let us uphold the values of democracy and work tirelessly for the credibility of our elections,” the don said.
He concluded his remarks on a reflective note, describing his appointment as part of a divine plan.
“Maybe if I had a choice, I would say I would not come here. But from all the indications, I could see that God is moving in this country, and my coming is divine.
“If God says go, who are you to say I’m not going? I’m here because I have a role to play to ensure that a new Nigeria is born. And of course, you know, INEC has a very, very important role to play in this quest.
“God bless you all, and God bless the Federal Republic of Nigeria,” he concluded.