Still On Subsidy Removal

The United States dollar today goes for about N165 as against a dollar to Nigeria’s 70 Kobo in 1985. This, economic experts attribute to a number of variables, key among which are bloated foreign debts activated by a consuming rather than a producing culture, near total dependence on imported goods, and more importantly, depleted foreign reserves.

This has remained a major source of worry to successive governments in Nigeria but who over the years, scratched the surface and consistently postponed the doom’s day. At various times, one form of subsidy or the other was removed but because it was not far reaching enough, the country continues to drift down the precipice.

All nations of the world, with Nigeria’s kind of economic uncertainty, including Ghana, took the painful decision of breaking away from the various cycles of beggardom, never-ending foreign debts, government’s over-involvement in virtually all sectors of the economy. That tendency resulted in bloated national fiscal budgets and forced government to pay for virtually every demands, no matter how unnecessary, resulting in large government’s portfolios and attendant huge expenditures.

In a clime where virtually every government’s action, no matter how well-intended is politicised and where political unpopularity among the people is a very devastating suicide attempt,  it requires a man of courage and vision, a complete patriot and a future builder to risk what Nigerian President Goodluck Jonathan did, by his painful decision to announce removal  of subsidy on Premium Motor Spirit (PMS) popularly called petrol.

Since that deregulation of the downstream sector, intended primarily to rechannel hitherto wasted fund into rebuilding standard infrastructure, the absence of which have scared away investments, and by extension, crippling  the labour market, not much effort has been made to evaluate the advantages of the policy in the long run.

It is true that the subsidy removal should, and indeed, has caused the ordinary Nigerian some temporary discomfort, especially because of its effect on the transportation sector and the multiplier effects on other sectors.

However, even at N97 per litre, survey shows that it is still cheaper than what the product sells in other parts of the West African sub-region. Ghana, for instance, toed the same path and is wiser and better for it with the building of standard infrastructure  with funds sourced from its deregulation policy and austerity measures.

That, perhaps, accounts for the Federal Government’s resolve not only to deregulate the downstream sector of the petroleum industry but also downsize the executive branch of government. In addition, principal executive officers have had 25 per cent of their basic salaries slashed with a promise to make further sacrifices.

Governor of the Central Bank of Nigeria (CBN), Lamido Sanusi Lamido, himself a product of the progressive civil society movement, has said for the umpteenth time that the subsidy removal would ensure the socio-economic development of the country. His support for the regime, he   explained even recently in Abuja, while addressing newsmen, was based on his conviction that Nigerians would reap the dividends derivable from it in no distant time from now.

According to Sanusi, it encourages in investment into the downstream sector and helps build refineries and petrochemical plants. More importantly, better fiscal management and a structural adjustment that leads to re-industrialisation and development.

Happily, no single Nigerian of note is against removal of the conduit called subsidy, the quarrel by some has been about timing. No time but the right time, in the surgeon’s view is ever good enough for the surgical removal of a cancerous anti-body. Yes, the ordinary Nigerian suffers some pains and for which more palliatives are still being articulated and implemented.

Therefore, we urge all Nigerians to painstakingly weigh the immense future gains of the subsidy removal regime and not merely dwell on the brief pains of the moment. No successful nation enjoys economic stability without passing through one form of hardship or another.

To succeed, Nigerians need to give the elected populist President the benefit of the doubt, and not judge him by the failures of his predecessors.

The Tide, again urges Nigerians to view the deregulation from this positive futuristic posture.

That, we believe is the path to honour, national greatness and socio-economic stability.