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Fuel Subsidy And The Ghost Of 2012

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On January 1, 2012, in his New Year address, President Good luck Jonathan announced the removal of fuel subsidy. The move was intended to lift the burden from the shoulders of the Federal Government in order that the much-needed funds would be freed for infrastructure; and also to deregulate the downstream of the oil and gas industry, thereby stirring up interest from investors.
The policy raised the price of Premium Motor Spirit (PMS), from N65 per litre to N141 per litre overnight, and this did not go down well with Nigerians. On Channels television, the Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iwala, stated that if nothing was done to stop the subsidy regime, it would increase domestic debt drastically.
Also, in an interview with the BBC, then CBN Governor, Sanusi Lamido, told the world that Nigeria spent $8 billion on fuel subsidy in 2011. A political analyst, Garba Sani, also noted that between 2006 and 2011, the country had spent a whopping $23 billion on subsidy
Even though the economics of the policy was impeccable, on January 2, 2012, protests broke out in major cities, like Lagos, Abuja, and Kano; and later spread to other major cities. By January 5 the major unions, NLC and TUC threatened to begin on January 9 indefinite strike, warning to shut down every aspect of the economy, including the airports.
The protest eventually metamorphosed  into what is now remembered as Occupy Nigeria that was supported by Nollywood stars and popular musicians.
By the second week, Nigerians in Diaspora were already protesting in South Africa, Belgium, and the IMF headquarters in Washington DC. The protest that eventually spread across the country and the Nigerian High Commission in London and South Africa was to compel the Federal Government to reinstate fuel subsidy.
One major argument at that time was that fuel subsidy was the only benefit accruable to the ordinary Nigerian from our collective oil wealth. Others argued that negotiations were still ongoing at the time President Jonathan made the announcement on New Year’s Day.
President Jonathan was called all manner of names.  The Vice President of NLC, Issa Aremu, commented that the President had shown himself as someone who could not be trusted.  The opposition speculated that people in government would fleece any Kobo saved from the subsidy removal. While protesters in Lokoja in Kogi State blocked the major link road between Southern and Northern Nigeria, ex-militants in the Niger Delta blocked the Port Harcourt – Warri Highway; and others called for revolution.
At the Gani Fawehimi Memorial Park in Ojota, Chairman of Joint Action, Dr. Dipo Fasina, stated that the struggle for the liberation of Nigerians from bad governance just started. He went further to call for a revolt to remove President Jonathan from office.
However, there were a few people, like Prof. Akin Iwayemi, who supported the policy, blaming the stunted growth of the downstream oil and gas sector on the overbearing influence of the government. Others who supported the policy asserted that the subsidy only benefitted the rich and the middle class. Yet, others claimed that subsidy was a ruse to empty our national treasury, an avenue for massive corruption and waste.
After many negotiations with the NLC and TUC, the price of PMC was brought down to N97. But President Buhari elevated the price to N165 per litre and everyone was happy, even though doomsday was not eliminated, but postponed, and the ghost of 2012 has remained with us; and in the light of current economic realities, it appears the proverbial chicken has come to roost.
In the past ten years, there have been several indications that the Occupy Nigeria protest against subsidy was only a political stunt by the opposition. Even Prof. Yemi Oke noted that the agitation at that time was a political arrangement and game that had backfired.
As adults, we know that every lie has a short lifespan, and in the case of the fuel subsidy, it was barely ten years before all the lies against President Jonathan began to show signs of cracks as the national budget became bloated due to the subsidy component.
Today, even the Minister for State for Petroleum, Chief Timipre Sylva, had confessed that there is a whole criminal enterprise within the subsidy regime, further claiming that he did not know the actual amount of fuel consumed in this country daily.
In the same vein, Clement Isong, Executive Secretary of Major Oil Marketers of Nigeria, is of the opinion that Nigeria is subsidizing the whole of Africa. According to him, all our neighbours in Africa are buying PMS at the international price while here in Nigeria the price is less than half. The result is a criminal enterprise where no one, even in NNPC knows the litres of PMS we consume in the country.
The NLC has recently faulted the figure bandied by NNPC, especially as it formed the base for its estimate of N3 trillion for subsidy in 2022. Even Governor Fayemi of Ekiti State has called NNPC’s consumption figures as criminal. But, the Speaker of the House of Representatives, Rt. Hon. Femi Gbajabiamila, has constituted an Ad Hoc Committee to investigate the volume of fuel consumed daily in the country.  .
Currently, the country is spending as much as N270 billion per month on subsidy; but unfortunately, only N443 billion was appropriated for fuel subsidy from January to June 2022, and if going by IMF’s estimate, we are yet to comprehend the full measure of the long term damage to our economy, especially if the current dollar exchange is thrown into the mix.
Now the whole nation is looking up to  Dangote refinery, which we hope would come up before the end of this year. But I am hoping that going forward, no political party would play the kind of unpatriotic role the opposition played in 2012.

By: Raphael Pepple

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 Making Wise Decisions Amid Pressure

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Look before you leap”, is one of the wise sayings that over the years I have been emotionally attached to. It means so much to me because the debilitating consequences of unguided actions are better imagined than experienced. “Look before you Leap” teaches me to  be thoughtful,  articulate, discreet dispassionate and solicit for advice of the experienced and reasonable people where necessary. I have seen people  reveal their stark ignorance because they took decisions rashly and without  considering the implications of their actions or inactions, only to say, “had I known” which is an euphemism for failure. It has therefore, become  necessary to “look before you leap”. Rehoboam, son of Bible’s King Solomon lost 10 of a 12-tribe kingdom of lsrael to Jeroboam. The negative consequences of lack of conscientious and enlightened  guide before taking action has landed many to avoidable regrets.
Thoughtless actions happen every day and they are evidenced in the unpleasant outcomes of such decision. In 2024, a Federal High Court, Abuja sacked 20 Cross River State House of Assembly members which serves as an object lesson for thoughtless Lawmakers’ and elected representatives who want to defect from the party on whose platform they were elected to a preferred political party, whether the choice was based on sound judgement, ignorance or pecuniary gains. The Electoral Act is unambiguous and crystal clear so does not make judicial interpretation necessary, on the ground for an elected representative to leave his or her political party for a preferred one either by inducement, anticipated pecuniary benefits or blind loyalty.And the sublime reason must be premised on irreconcilable crisis in the  political party of  those elected who want to decamp or cross-carpet
Recall that on Monday  March 18, 2024 a Federal High Court in Abuja  sacked 20 members of the Cross River State House of Assembly. The Peoples Democratic Party (PDP) had instituted a suit against the lawmakers over their defection to the All Progressives Congress (APC). Ruling on the case marked “FHC/ABJ/CS/975/2021 , Taiwo Taiwo, the presiding judge, held that the lawmakers should vacate their seats, having abandoned the political party that sponsored them to power. The affected lawmakers are: Michael Etaba, Legor Idagbor, Eteng Jonah William, Joseph A. Bassey, Odey Peter Agbe, Okon E. Ephraim, Regina L. Anyogo, Matthew S. Olory, Ekpo Ekpo Bassey, Ogbor Ogbor Udop and Ekpe Charles Okon.Others are Hillary Ekpang Bisong, Francis B. Asuquo, Elvert Ayambem, Davis Etta, Sunday U. Achunekan, Cynthia Nkasi, Edward Ajang, Chris Nja-Mbu Ogar and Maria Akwaji.
The Independent National Electoral Commission (INEC), Speaker of the House of Representatives, National Assembly, Clerk of the National Assembly, Cross River State House of Assembly, Clerk of the Cross River State House of Assembly and the All Progressives Congress, were also joined as defendants in the suit. Though, in their defence, the lawmakers argued that there was rancour in the Peoples Democratic Party  (PDP),which led to their expulsion from the party,  the judge held that the defendants had intentions to mislead the court. He said he found gaps and loopholes in their defence as they tried to twist events to suit their own narratives.”They wined and dined under the umbrella of the plaintiff who also gave them shelter,” he said Taiwo noted that they not only defected loudly, “they took pictures of their defection and were received by the officials of the 26th defendant”.
“There is no doubt that the defendants can belong to or join any political association and assembly as they are free to do so,” he ruled. “I consider the attempts of the 6th – 25th defendants to justify their defection feeble in the circumstances of this case.” Taiwo said the public voted for the lawmakers through the plaintiff who sponsored them and they were not elected as independent candidates.”They had a vehicle which conveyed them and that vehicle belongs to the plaintiff. They cannot abandon the vehicle,” he held. Justice Taiwo’s judgment and several other judgments on thoughtless defections should have been a basis, landmark and precedent to determine whether the 27 Rivers State House of Assembly members elected on the platform of the Peoples Democratic Party (PDP), have the locus to publicly decamp to the All  Progressives Congress (APC) and still retain their seats in the House as elected and honourable  members of the House as declared by the Supreme Court in its Judgment on consolidated suits on the political crisis in Rivers State.
The judgment of the “learned” justices of the Supreme Court on the 27 defectors is a bitter pill to swallow. It is however, not a surprise because the aroma of the fart tells the substance of the poo. The wise man learns from the experiences of others and  history. History repeats itself because people have refused to come to understanding. They are close-ended in learning. The essence of history is to avoid a reinvent of the negative past, use the ugly past to reconstruct the future. Legislators are elected to represent constituency consisting of people of all walks of life. They should rather strive to serve the people, solicit the consent of popular opinions on critical issues rather than serving their selfish interests. Those elected should see themselves as stewards and as stewards they are accountable to the people and God, not their political godfather.
It is high time our political leaders knew that the legitimacy of their positions is derived from the magnanimity of the people. They should therefore not take decisions without taking into cognisance the interest of the people they are representing,  through intentional consultation.

By: Igbiki Benibo

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  Effects Of Smuggling Of Petrolum Products In Nigeria

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Of late, Nigerian  Customs Services have been fighting the act of smuggling taking place at the Nigeria’s  borders with the neighbouring countries. Smuggling of petroleum  products and  other goods out of Nigeria is a threat to local consumption of any product produced locally. Smuggling has done more harm than good to Nigerians and Nigeria as a country. The rate at which petroleum products are smuggled out of Nigeria is alarming. Smugglers always re-strategise to beat the customs officers on duty and have their ways through the borders. Yes, it was revealed few years ago, that the borders of Nigeria with other countries are so porous, that smugglers have easy escape routes to other countries. Today, petroleum products are not sufficient to sustain the internal needs of most Nigerians. If smuggling be allowed to continue without check, it will lead to severe economic crisis.
Smuggling is a serious menace to the economic development of Nigeria. It is a name synonymous with petroleum products.  Nigeria, being a major player in oil industry in the world, is seriously facing uncontrollable smuggling activities by smugglers. Inspite of the efforts of the Customs and the Immigration Services at  working hard to curtail the excesses of smugglers,  corruption in the oil sector seems to have provided a thriving ground for  smuggling activities to remain unabated. Few weeks ago, Nigerian Customs  apprehended smugglers with over two thousand Jerry cans loaded with petrol in Nasarawa State. The product was confiscated and taken to a filling station where it was sold at a cheaper rate of five hundred naira, per litre.  Some time it is difficult for seizure of smuggled products to take place because of corruption.
Smugglers are strategists who can maneuver through the borders, not minding the penalty of the offence. Activities of smugglers lead to high cost  of commodities in the markets. It gives room to quick gains, thereby giving room for skyrocketed price of  smuggled goods. Again, the activities of smugglers lead to scarcity of products that should be available in the country. The land and water border towns are where smugglers move the products to other countries. Sometimes high level compromise frustrates the combat against smuggling of products. The network of smugglers is so sophisticated to burst. Some of them are highly connected to those in authority, thereby making the war against smuggling a fruitless one. Smuggling activities are undermining even circulation of some locally produced goods in Nigeria.
According to AI overview, smuggling of petroleum products can have significant negative effects including: substantial loss of government revenue from taxes, depletion of natural resources, destabilisation of activities, fuel shortages in the exporting  country, environmental damage due to improper storage and transportation, and potential for price distortions in receiving markets due to influx of cheap smuggled fuel. Indeed, weak border control  is another  problem of poor border security and inadequate monitoring systems can facilitate smuggling activities. And another factor that promotes smuggling is price disparities. When there is a large price difference between a country producing petroleum and neighbouring countries, it stimulates smuggling.
Other social impacts; funding criminal activities; profits from petroleum smuggling often fund organised crime networks and terrorist activities. Corruption is not left out. Smuggling often involves collusion with corrupt officials undermining public trust in institutions. It is also dangerous to the environment. For instance, smuggled petroleum products are often stored and transported in substandard conditions, increasing the risk of spills and leaks, causing environmental contamination. Illegal pipeline tapping is another dangerous trend; in some cases, smuggling can involve tapping into oil pipelines, which can lead to significant environmental damage.Indeed, governments lose significant income from taxes on legally sold petroleum products when they are smuggled out. Again, smuggling can disrupt the normal supply and demand dynamics of the petroleum market, leading to price fluctuations and shortages.
It undermines fuel subsidy programme. When a country like Nigeria subsidises fuel, smuggling can exacerbate the issue by allowing people to buy subsidised fuel at a low price and sell it at a higher price in other countries Hence, there is need for the governments to combat and eradicate smuggling in the petroleum sector. Strengthening border controls; increasing border controls implementing advanced monitoring technologies and improving customs procedures can help deter smuggling. Thus, there is need for price harmonisation. Reducing price discrepancies between countries can lessen the incentive for smuggling. International co-operation is crucial to combat cross-border smuggling operations. Smuggling of petroleum products is a threat to the economic development of the citizens and Nigeria. Therefore, say no to smuggling of petroleum products in Nigeria.
Ogwuonuonu writes from Port Harcourt.

By: Frank Enewaji Ogwuonuonu

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IWD: Accelerating  Action To End Women Harassment 

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March 8, every year is International Women’s Day. Recall that in 1922, Wedmir Lenin declared March 8 as International Women’s Day to honour women’s roles in the 1917 Russian Revolution. Subsequently, it was celebrated on that date by the Socialist Movement and Communist countries.However, the United Nations officially endorsed that date in 1977, establishing it as a global observance for women’s rights and gender equality. The 2025’s theme is “Accelerating Action” to advance gender equality by highlighting strategies, resources and initiatives that drive progress. Unfortunately, while many countries in the world accelerate action to foster inclusivity of women in mainstream policymaking and decision taking; recognise and celebrate the meritorious and creditable roles of women as primary agents of socialisation, sustainable growth and influencers, in other countries, in the Sub-Saharan Africa some women are being victimised, intimidated, and repressed for not giving in to pernicious sexual advances of some men in power.
Some women are being ridiculed and lampooned for cultivating the effeontery to resist the inordinate sexual harassment of base men. However I  do not lose sight of the obvious reality that some women have played the porn as a result of lacking the strong will to say “no” to men who see women as opportunity to express their inordinate sexual urge even outside the bond of matrimony. Yes, the likes of Joi Nunieh and Senator Natasha who can cry out or call the shots and “slap” men who harass women are few among women. This makes women the architect of their reproach and disdain. When women go for the carrot, pottage, flashy cars, at the expense of morality, they lose their maiden dignity in civilised climes where moral values are savoured. Nothing in the world or comprehensively put, the whole world put together is not worth a woman’s worth, so no reason can best lend support to the situation where a woman offers her body as an opportunity to access pecuniary  mundane, temporary benefits that have no eternal value and translates to a reproach.
Most societies have intentionally created a poverty-ridden situation where women are worst hit so the base fellows can use women weakness and lack as a smokescreen to get more than a pound of flesh for their paltry gifts. This is why in my considered view, the agitation for the acceleration of action to foster gender equality is imperative. Enough to women exploitation in political institutions, offices, religious organisations, families and educational institutions. Women’s fundamental rights should be recognised and accelerated to achieve the more than 35 percent affirmative action of the Geneva Convention. However, freedom is not without a price. Women must prove to men that the female gender does not suggest inferiority and cannot be exploited, or used as sex machine by men who lacked  or have regard for moral values.
The White House sex scandal should inspire the Nigerian women to resist being abused and exchanged for worthless gifts. Women should rather choose to suffer marginalisation, and victimisation or possibly die for what they conscientiously believe is right than living in shadow of real life. Methinks men who have mother and realise that they are the gateway to physical should not fail to treat women with dignity. Paul said, “…. Treat the old women as your mother and the young women as your sisters with all purity and respect”. (1 Timothy 5: I). The time for women movements to rise to defend their fellow women from sexual harassment is now. It is only in a morally-decadent society that a man who has  subsisting cases of sexual accusations, is treated as lord, instead of making him step aside for proper investigations. However, my heart goes out for men, organizations and institutions who in recognition of the critical and invaluable roles of women in Nigeria, rolled out drums to give them a pat at the back.
Consequently, I celebrate the Managing Director of the Rivers State Signage and Advertisement Agency (RISAA), Aye Pepple, who according to reports has urged individuals, organisations, and the government to celebrate women and actively encourage their growth in all spheres of life. Speaking in commemoration of International Women’s Day (IWD), Pepple emphasised the importance of recognising women’s contributions and ensuring they are empowered to achieve their full potential. According to him, “Women play an essential role in shaping our society, and their efforts must never go unnoticed. “This year’s International Women’s Day serves as a reminder that we must do more than just celebrate them”. He highlighted the significance of gender inclusion in leadership, entrepreneurship, and governance, stressing that societies that empower women tend to experience sustainable growth, adding that “at RISAA, we believe in amplifying women’s voices, whether in the workplace, in business, or in the creative industry. “We must all do our part to provide opportunities, mentorship, and support that help women succeed.” Kudos to institutions and organisations who understand the roles of women as agents of shaping society.

Igbiki Benibo

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