Opinion
Subsidy Is Dead, Long Live Subsidy
Before the 2023 presidential elections, acres of print space and hours of airtime were expended by armies of well-paid publicists and media influencers to sell home the fact that candidate Bola Ahmed Tinubu was the real deal among the three presidential candidates running in the election. The narrative ran that Tinubu had in his ken, the ability to turn Nigeria’s flagging economy and transform it like he did as Governor of Lagos State when he oversaw an unprecedented level of development at the centre of excellence.
Last week, a major dent to that well packaged façade of President Tinubu was inadvertently revealed when it emerged that the cardinal economic measure of the administration, removal of subsidies on petroleum products, have all along been an elaborate deception. Before nervous and embarrassed Tinubu administration officials disclaimed it, the story that subsidy payments totalling N5trillion had been making the rounds.
To the utter consternation of Nigerians, the question was howbeit that a government that said it had ended subsidy payments is now having to pay more than two times the Buhari government which was paying over N2trillion on subsidies?
The case of petroleum subsidy payments has been mired in a crisis of clarity and truth. When some petroleum economists questioned the claim that subsidy had been removed with empirical facts, mum was the word from the President who announced the measure in the first place and who doubles as substantive Petroleum Minister. The minister of State in the same Ministry, Heineken Lokpobiri without providing contravening facts pointedly denied that subsidy was being paid. The Group Managing Director of the Nigeria National Petroleum Company Limited (NNPCL) Mele Kyari also said what amounted to the same thing as the minister of state. His explanation was that in the past subsidies arose out of the necessity to license contractors to import and distribute petroleum products in the country as a result of non-functioning of the refineries. In the current dispensation however as the NNNCL had been given the sole responsibility of that task, there was no need for subsidies as he said ‘’NNPCL (through its ways, I presume) had the mechanism to cover the costs’’ of the task of importing and distributing the commodity without subsidy.
But the International Monetary Fund (IMF) and World Bank were not convinced. Let us not forget that the twin institutions are the authors and supervisors of the Tinubu administration’s economic policies. And what they say in their assessment of the economic policies of the administration cannot be far from the truth. Whereas the GMD’s explanation was more on the side of contrived sophistry intended to deflect embarrassing enquiry, the statements from the IMF and World Bank on subsidies were decidedly factual. The World Bank’s Country Director in Nigeria connected the variables of the oil importation and distribution monopoly of the NNPCL to arrive at the conclusion that subsidy was indeed being paid. These include; the rate at which the NNPCL procures the dollar for the transaction; the cost of the commodity at point of procurement; cost of freight and insurance; landing and distribution costs in Nigeria. Where there is a difference in the actual cost of one or all of the variables, this then establishes the fact of subsidy. The World Bank knew that NNPCL was getting foreign exchange preferentially at the official rate which is below the market rate. And from that stage right up to the landing stage and distribution in Nigeria, the subsidy graduates at every point leading inevitably and factually to the conclusion that subsidy was being paid.
The IMF on its part pointedly said that taking all the points together, the fact that the pump price of the petroleum products all things being equal should be somewhere between 700 and 800 naira per litre and not the 680 naira per litre that it is being sold presently. The fact that it is not being sold at those rates is the clearest indicator that the difference in pricing is the subsidy. Kyari’s explanation that the NNPCL is covering the cost is a vague indication that the conglomerate is paying the cost differentials to the local oil marketers to distribute the cost locally after it had imported the commodity to the country.
Let us not pussy foot about it; subsidy is indeed being paid by the Tinubu administration. The only difference here is that unlike in the past where the subsidy payment was a bazaar for all comers, in this particular dispensation, it is the NNPCL that exclusively warehouses the subsidy. And it is by connecting and calculating all the dots on the entire chain of NNPCL’s oil importation monopoly that the World Bank concluded that there was indeed subsidy in the process. So in reality, Mele Kyari’s explanation that NNPCL had the means to cover the cost of oil importation task was merely half the story and it does not convincingly disprove that oil subsidy was not being paid.
If walks and quacks like a duck, it is a duck. Much as it strenuously tries to deny that there is no subsidy, discerning Nigerians know for a fact that subsidy is indeed being paid by the administration. The truth however is that because the payment goes to a single source, the NNPCL which buries the payments in its labyrinthine maze of creative accounting it is not readily discernible as it was in the past subsidy dispensation.
That perhaps explains why from the President who is the substantive Minister of Petroleum to Lokpobiri the State Minister and the GMD of NNPCL, they all can put up a face and say that there are no subsidies. They are able to say so because they are secure in the knowledge that the NNPCL which is at the nexus and custody of the entire process of oil importation into the country can obfuscate the truth about it all with a wink and a nod as it is now doing.
Gadu, is a prolific writer and online communicator.
By: Iliyasu Gadu
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”.
“All work and no play”, its said, “makes Jack a dull boy.” Despite this age-long maxim that recognises the role of play in early childhood development, play appears to be eluding many Nigerian kids. The deprivation of play opportunities comes in different forms for the Nigerian child depending on family’s social setting or status, but the effect is much the same. For children in Nigerian poor families, life is becoming as much a hassle as it is for their struggling parents. Due to harsh economic conditions, many families resort to engaging their kids prematurely in trading activities especially in hawking, to help boost family revenues, when these kids should be enjoying leisure after school. Some of these children barely attend schools while being forced to spend much of their childhood hustling in the streets. For children from well-off families, time could be as crunchy as it is for their busy parents when, obsessed with setting agenda for the future of their kids, parents arrange stringent educational regiment too early for their kids.
These group of children are made to get-off the bed by 5.30am every weekday, get ready for private school buses that call at 6.00am, otherwise report by however means to school at 7.20am.The situation is worse for kids in the city of Lagos where the need to beat urban traffic rush-hours is very high. Most children are further subjected to extra hours of lessons after school at 2.00pm, only to be released with loads of homework. On many occasions children who leave home for school at 6.30am get back by 3.30pm. With hardly enough time to eat, do school assignments and take afternoon naps, these children hardly had time for plays before dinners. In Nigeria, kids of ages between 3 and 12 spend averages of 9 hours a day and 45 hours a week to and from schools, and additional hours doing home assignments and domestic jobs, whereas their peers in developed countries spend about half that duration and have more time for leisure.
Any remaining spare time left after school work or street hustle is further stolen, when kids who usually are fascinated by gadgets, are exposed to household electronics like phones, tablets and gaming consoles. Electronic games may create a sense of leisure, but the difference with human interactions is that kids doing games interface mostly with machines or with programme structured in ways that entrap a child’s pysch directionally, according to the game’s programming, in ways that may not encourage independent thinking. Moreso, attraction to such gadgets displaces kids’ attention from important television and radio programmes. The prevalent tight, academic schedules for some Nigerian kids, though intended for academic excellence, encroaches on childhood leisure time needed to achieve an all-round childhood development, and could make children to resent formal education altogether. Besides, academic excellence or economic pursuit, is not all there is to living a well-nurtured life.
Children’s leisure time, defined as time left over after sleeping, eating, personal hygiene and attending school or day-care, is very crucial to childhood development. Sociologists recommend that children should have at least 40 per ceny of the day as leisure. According to Berry Brazelton, a former pediatrician at Harvard Medical School, “Play is the most powerful way a child explores the world and learns about him or herself.” Unstructured play encourages independent thinking and allows the young to negotiate their relationships with their peers, and in the process build self-confidence and self-control. Play is one of the important ways in which young children gain essential knowledge and skills. Leisure time enhances learning as fun enables children to learn at their own level and pace. Young children naturally explore and learn many skills by making cognitive connections from events that catch their attention.
Unstructured plays help children developed their cognitive, physical and communication skills that make them acquire social qualities necessary in navigating relationships in adult life. Plays enable children assess how others feel and learn perspectives as well as empathy through observing differences in facial expressions, body language and even tone of voice, which helps them copy how to express themselves to others, and therefore develop socially acceptable behavours that build relationships. In cooperative activities, children willingly take things in turn and may delegate roles. Children can also share the glory of winnings through competitive games, which is all great for working together in task sharing. Aside encouraging parents to ensure adequate leisure time for their kids at home, schools should make plays and exercises an integral part of the educational curriculum. The educational curriculum set by the Nigerian Educational Research and Development Council (NERDC) includes specific training durations and break periods, as well as sporting activities, as part of the school system.
Due to poor government funding, sports in public schools have declined, while most private schools lack sporting infrastructure or even play grounds. These make recreational activities and sports implementation almost impossible in schools. Also, the increasing rate of urbanisation in Nigerian communities is gradually eroding ancient playgrounds, while established urban centres have lost community playgrounds. With tightening apartment spaces now being the norm in most urban residential areas, many kids are forced to wriggle within burglary-proof enclosures. Nigerian governments and the relevant agencies should ensure that existing child labour protection laws, educational and urban development codes are implemented in the country, to enable proper nurturing of children as the future stakeholders of our society. Private schools, especially, should be supervised to ensure they follow the educational curriculum standards set by NERDC.
In a bid to impress parents and draw more patronage as better option than public schools, private schools, most of whom operate in cramped environments, have continued to set high regiments of training schedules beyond the capacity of most kids, and even encourage enrollment of pre-school age kids who can not sit still to listen for an extended periods of time. Schools, from creche to secondary levels, without playgrounds and recreational facilities should not be allowed to operate, and should be made to understand and implement appropriate curriculum and training durations. Many Nigerian kids, whether from rich or poor families, appear to have been set-up inadvertently, in the same leisure denial that affects their parents. All work and no play could lead to some messed-up kids who grow up not understanding social cues, and being unemotional and self-centered, manifest later as obsessive-compulsive adults.
By: Joseph Nwankwo
We thank God who is above all human contrivance and arrogance. Congratulations, Your Excellency Amaopusenibo Sir Siminalayi Joseph Fubara. Your victory takes us back to the Bible as a living document of a God that rules in the affairs of all His creation. In a manner of speaking, welcome back from your first war with Phillistines, Your Excellency! Yes, first example is David and Goliath! And like David, Your Excellency stands over Goliath in victory. But that is not enough. Our real enemy is that Your Excellency is Governor of a State with a wretched economy. Indigenes of Your State are today reduced to battalions of beggars waiting for who will hire their loyalty on the usual “pay-as-you-go” basis.
Your Excellency, it brings us to another Bible- based parallel. Conscientious Rivers indigenes above 50, should identify with and commit our all to this second parallel. It is to liberate the economy and people of Rivers people from 23 years enslavement and poverty, for us to regain our dignity and pride. When the economy of Egypt was drifting into a disaster zone, even Pharaoh did not know it. He also did not know what to do. But God sent a Joseph to build the economy into a fortress of good fortune that overcame the economic and social disaster Egypt did not know was ahead. Your Excellency for 23 years, Rivers State has been ruled without any logical, credible and consistent PLAN of how to overcome mass poverty from our dehydrated local economies.
Your Excellency, Rivers State cannot survive one month without Federal allocation! So called IGR only about 10 per cent of Federal allocation.It is also not based on what we produce but on tax from other people’s productivity that pass through our State. Pharaoh did not know what to do in the case of Egypt. May it please God to position another Joseph in Governor Siminalayi Joseph Fubara to heal Rivers State and build an economy that all Africa will come to access in order to chart a new course out of worsening economic hardship that is caused by near zero investment in productivity and endemic reckless looting. They are the twin chambers nursing a corporate cancer unfolding across Nigeria and Africa. The hard work begins today, Your Excellency.
We need an economic blueprint that will enrich every Rivers senatorial district from investment to grow productivity and to enrich every Rivers person from career-based productive labour, just as Pharaoh was enriched by Joseph’s economic Blueprint. Let Rivers State stop the trend of waiting the lives of young Rivers people recruited by Phillistines into cultism, thuggery and easy money, as a career. These Phillistines believe they have only lost one phase of many legal battles and battles by other means. But from comments in the public media, their eyes are fixed on 4-years of war and more! Your Excellency, we the people will not let you forget what you owe us. We have to make unbelievers see that your leadership is different and that we are uprooting the old order of an unproductive Feudal System. That system makes a few persons and their cronies to monopolise our collective wealth, while the majority are left in misery. Let’s put an end to enslavement by cabals and mass poverty in Rivers State. That is when the Phillistines will surrender.
By: Amaopusenibo Brown