The Federal Government of Nigeria, through the Nigerian National Petroleum Corporation (NNPC) was quoted as crying out that the N120 billion monthly subsidy burden on petroleum products is too heavy to bear -Ref. The Tide: Friday 26 March, 2021. There is a proclamation known as “crying down credit” in police circle, whereby the Divisional Police Officer in a newly established police unit would warn the community in the neighbourhood not to grant any credit to any police officer of that unit. The idea is that the police authority would not be held liable for any breach of the proclamation. You give loan or credit at your own risk!
The purpose of this digression is that the people of Nigeria are being warned to expect a price increase in petroleum products. Usually, hike in the pump price of petroleum products is a ready means of raising money when the economy is biting harder. The logic of fuel subsidy expresses the endemic enigma in the oil and gas industry, with reference to perennial paralysis of the refineries and continued importation of fuel from abroad. Obviously, there is a clever system of parasitism, of which Nigerians demand to know the truth.
The ding-dong about proper pricing of petroleum products in Nigeria began with my late colleague, Professor Tam David-West, whereby the content value of Coca Cola bottle became a measure for the price of same volume of petrol. The issue of subsidy and proper pricing of petroleum products must be resolved once and for all without the shenanigans that feature in the old story. Who are the consumers of subsidised fuel and who is robbing or fooling who, to pay another?
The logic about Coke and petrol price equalisation was also applied in subsidising the cost of transportation of petroleum products across the country. A motorist in Eleme must buy fuel at the same price as another in Damaturu, which is another form of equalisation and quota policy. The cost of delivery of fuel is passed on to the public as collective tax. The most annoying aspect of the fuel subsidy issue is parasitism in the consumption pattern. Subsidy is defined as money paid by a government to make price lower, reduce the cost of production of goods, etc. but with fuel, it translates into indirect increase of taxation, to maintain a parasitic political economy.
Why must an innumerable number of government officials and political office holders, having several vehicles each, all fueled at public expense, also enjoy huge transport allowances? Why has there not been a public audit to determine if the issue of free fuel, coupled with transport and travelling allowances, are not being abused grossly? Nigerians are aware whereby transparency is thrown to the wind.
We have not faced the issues of corruption, deceit and transparency in governance with seriousness and honesty. Part of what the International Monetary Fund (IMF) demanded of Nigeria many years ago, included total removal of fuel subsidy. What was actually meant by fuel subsidy removal had to do specifically with excessive free fuel consumption by innumerable state and political office holders. It was the issue of transparency in governance, so that the public is not made to pay for the profligate life-style of state and political office holders.
For a long time, there had been a suspicion about possible foul play in the petroleum industry, with specific reference to endless excuses why the nation’s refineries cannot work effectively. The situation becomes even more annoying with the huge sums of money spent to revamp refineries from time to time. Yet importation of fuel into the country becomes a better option, with numerous abuses associated therewith. Neither is there any seriousness about creating enabling environment and policy for small-scale local refineries, of which there are several demands.
One Joseph Obele was quoted as saying that when the Port Harcourt Refinery is revamped, it would enhance the provision and availability of quality petroleum products. He went on to say: “It will make us have the best quality of products as against all the rubbish they are importing into Nigeria”. If revamping a refinery would be capable of creating employment for over 25,000 persons, according to the IPMAN chairman, then what is the jinx holding the nation in bondage!
Needless to revisit the issue that there are many predators and parasites within and outside Nigeria who have held this country hostage since 1970, with the oil and gas sector as their stronghold. But Nigeria would want to know why the nation’s security and intelligence network would not be able to come to the rescue of helpless Nigerian masses. Why must a great nation as Nigeria be held hostage by some faceless smooth operators? If the Nigerian masses are docile and helpless, there are some elite who are complicit or serving as willing accomplices of the predators and parasites.
The strategy of containing the Nigerian masses 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. When a senator gets emoluments estimated to be four times the salary of the President of the United States of America, then we must ask whose interests they are being paid to protect. With their known allowances as enumerated by an insider, the senators would not want to be deprived of what benefits they enjoy. These include free fuel extended to friends!
Removal of fuel subsidy would mean removing the hidden costs of maintaining the class of predators and parasites that the military installed for self-preservation purposes. The cry of government through the NNPC about the burden of spending N120 billion monthly as fuel subsidy, can be described as idiomatic “crocodiles’ tears”. It is what happens when an oligarchy is installed under the guise of a democracy. Those responsible for this structure would fight against any restructuring.
With the burden of spending N120 billion monthly as fuel subsidy, the NNPC should ask itself who are the free and insatiable consumers of petroleum products. Who is paying to support who in Nigeria? NNPC is advised to adopt the crying down credit or proclamation of the police, with respect to free consumption of fuel. Whoever consumes fuel must pay for it, rather than place a heavy burden on NNPC and on to the public. Nigerian masses have been bamboozled long enough!

Dr. Amirize is a retired lecturer from the Rivers State University, Port Harcourt.