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
Opinion
Wike VS Soldier’s Altercation: Matters Arising
The events that unfolded in Abuja on Tuesday November 11, 2025 between the Minister of the Federal Capital Territory, Chief Nyesom Wike and a detachment of soldiers guarding a disputed property, led by Adams Yerima, a commissioned Naval Officer, may go down as one of the defining images of Nigeria’s democratic contradictions. It was not merely a quarrel over land. It was a confrontation between civil authority and the military legacy that still hovers over our national life.
Nyesom Wike, fiery and fearless as always, was seen on video exchanging words with a uniformed officer who refused to grant him passage to inspect a parcel of land alleged to have been illegally acquired. The minister’s voice rose, his temper flared, and the soldier, too, stood his ground, insisting on his own authority. Around them, aides, security men, and bystanders watched, stunned, as two embodiments of the Nigerian state clashed in the open.
The images spread fast, igniting debates across drawing rooms, beer parlours, and social media platforms. Some hailed Wike for standing up to military arrogance; others scolded him for perceived disrespect to the armed forces. Yet beneath the noise lies a deeper question about what sort of society we are building and whether power in Nigeria truly understands the limits of its own reach.
It is tragic that, more than two decades into civil rule, the relationship between the civilian arm of government and the military remains fragile and poorly understood. The presence of soldiers in a land dispute between private individuals and the city administration is, by all civic standards, an aberration. It recalls a dark era when might was right, and uniforms conferred immunity against accountability.
Wike’s anger, even if fiery, was rooted in a legitimate concern: that no individual, however connected or retired, should deploy the military to protect personal interests. That sentiment echoes the fundamental democratic creed that the law is supreme, not personalities. If his passion overshot decorum, it was perhaps a reflection of a nation weary of impunity.
On the other hand, the soldier in question is a symbol of another truth: that discipline, respect for order, and duty to hierarchy are ingrained in our armed forces. He may have been caught between conflicting instructions one from his superiors, another from a civilian minister exercising his lawful authority. The confusion points not to personal failure but to institutional dysfunction.
It is, therefore, simplistic to turn the incident into a morality play of good versus evil.
*********”**** What happened was an institutional embarrassment. Both men represented facets of the same failing system a polity still learning how to reconcile authority with civility, law with loyalty, and service with restraint.
In fairness, Wike has shown himself as a man of uncommon courage. Whether in Rivers State or at the FCTA, he does not shy away from confrontation. Yet courage without composure often feeds misunderstanding. A public officer must always be the cooler head, even when provoked, because the power of example outweighs the satisfaction of winning an argument.
Conversely, soldiers, too, must be reminded that their uniforms do not place them above civilian oversight. The military exists to defend the nation, not to enforce property claims or intimidate lawful authorities. Their participation in purely civil matters corrodes the image of the institution and erodes public trust.
One cannot overlook the irony: in a country where kidnappers roam highways and bandits sack villages, armed men are posted to guard contested land in the capital. It reflects misplaced priorities and distorted values. The Nigerian soldier, trained to defend sovereignty, should not be drawn into private or bureaucratic tussles.
Sycophancy remains the greatest ailment of our political culture. Many of those who now cheer one side or the other do so not out of conviction but out of convenience. Tomorrow they will switch allegiance. True patriotism lies not in defending personalities but in defending principles. A people enslaved by flattery cannot nurture a culture of justice.
The Nigerian elite must learn to submit to the same laws that govern the poor. When big men fence off public land and use connections to shield their interests, they mock the very constitution they swore to uphold. The FCT, as the mirror of national order, must not become a jungle where only the powerful can build.
The lesson for Wike himself is also clear: power is best exercised with calmness. The weight of his office demands more than bravery; it demands statesmanship. To lead is not merely to command, but to persuade — even those who resist your authority.
Equally, the lesson for the armed forces is that professionalism shines brightest in restraint. Obedience to illegal orders is not loyalty; it is complicity. The soldier who stands on the side of justice protects both his honour and the dignity of his uniform.
The Presidency, too, must see this episode as a wake-up call to clarify institutional boundaries. If soldiers can be drawn into civil enforcement without authorization, then our democracy remains at risk of subtle militarization. The constitution must speak louder than confusion.
The Nigerian public deserves better than spectacles of ego. We crave leaders who rise above emotion and officers who respect civilian supremacy. Our children must not inherit a nation where authority means shouting matches and intimidation in public glare.
Every democracy matures through such tests. What matters is whether we learn the right lessons. The British once had generals who defied parliament; the Americans once fought over states’ rights; Nigeria, too, must pass through her own growing pains but with humility, not hubris.
If the confrontation has stirred discomfort, then perhaps it has done the nation some good. It forces a conversation long overdue: Who truly owns the state — the citizen or the powerful? Can we build a Nigeria where institutions, not individuals, define our destiny?
As the dust settles, both the FCTA and the military hierarchy must conduct impartial investigations. The truth must be established — not to shame anyone, but to restore order. Where laws were broken, consequences must follow. Where misunderstandings occurred, apologies must be offered.
Let the rule of law triumph over the rule of impulse. Let civility triumph over confrontation. Let governance return to the path of dialogue and procedure.
Nigeria cannot continue to oscillate between civilian bravado and military arrogance. Both impulses spring from the same insecurity — the fear of losing control. True leadership lies in the ability to trust institutions to do their work without coercion.
Those who witnessed the clash saw a drama of two gladiators. One in starched khaki, one in well-cut suit. Both proud, both unyielding. But a nation cannot be built on stubbornness; it must be built on understanding. Power, when it meets power, should produce order, not chaos.
We must resist the temptation to glorify temper. Governance is not warfare; it is stewardship. The citizen watches, the world observes, and history records. How we handle moments like this will define our collective maturity.
The confrontation may have ended without violence, but it left deep questions in the national conscience. When men of authority quarrel in the open, institutions tremble. The people, once again, become spectators in a theatre of misplaced pride.
It is time for all who hold office — civilian or military — to remember that they serve under the same flag. That flag is neither khaki nor political colour; it is green-white-green, and it demands humility.
No victor, no vanquish only a lesson for a nation still learning to govern itself with dignity.
By; King Onunwor
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