The downstream sector is locked in several shady deals which lock out accountability. The late President Umaru Musa Yara'Adua acknowledged this much in his lifetime saying then that the cartel had become too powerful and out of control.They had seized the sector so securely that government could no longer guarantee uninterrupted supply of kerosene, diesel and petrol (motor spirit) unless importers are appeased. So, while the federal government claims to spend billions or trillions to importers, it has never been bold enough to publish a breakdown of actual amount paid out and the beneficiaries. Industry experts have also given up alleging that the petroleum equalisation and stabilisation funds are locked in opacity that will never allow Nigerians to understand or effectively engage the sector. But the biggest leakage in the Nigerian economy is widespread corruption that bleeds the nation of billions of dollars in the form of bloated contracts, over invoicing, outright theft and disappearance of government properties. Not too long ago, Nigerians were confronted with suffocating revelations of mismanagement of public resources, including th!e $16.25 billion independent power project; the more than N20 billion aviation rehabilitation funds; N7 billion community power projects. Several billions voted annually to education, agriculture, health, police, etc, simply reportedly grew legs and disappeared without trace leaving the sectors in sorry state. Even the controversial excess crude account that stood at about $26 billion, at the height of the commodity boom is now totally liquidated. Yet, the country struggles to show value for it. The scale of looting unleashed by legislators in the sixth National Assembly in the form of illegal jumbo salaries, procurement thievery and borrowings in stark contravention of relevant laws could bankrupt a small nation such as Gambia but the economic saboteurs in the serial heists walk around freely flaunting their wealth with sickening presence while Nigerian prisons, where many of them deserve to be, are stretched by awaiting trial inmates that rot in jail for lesser offences.It is totally condemnable that rather than confront the cartel allegedly working in cahoots with proxies in government to drain Nigeria of important revenue Jonathan chose to side and remain in alliance with the cartel and unleash more pain on an already traumatised population through fuel subsidy removal. The cartel in charge of the downstream sector have mutated over the last two decades consuming local refineries and locking the country in permanent dependence on importation of petroleum products. The importers have frustrated the half-hearted efforts to license and encourage new investment in petroleum refineries. And in so doing Nigeria now relies on the resource-poor West for domestic need for petroleum products. Disappointingly, rather than allow knowledge and superior reasoning to address the age-long problem of revitalising the downstream sector and fuel subsidy, the administration, like a proverbial stray dog bent on being preyed, appears set to lock out further dialogue and reasoning on the matter choosing instead to stick with removal of subsidy as the only solution. Removal of fuel subsidy is not an alternative to functioning refinery, open and efficient supply chain and accountable management of public revenues. Focusing on these ones and in addition, effective implementation of anti-corruption and public procurement laws will save more than 40 percent of Nigeria's annual budget stolen by government officials. Without freeing the downstream sector from the hands of selfish oil importers that have successfully shown themselves as economic saboteurs and others engaged in bleeding the nation of important revenues through corruption, outright theft, wastage and mismanagement, the government will continue to run below its earning capacity. Now, what makes the current debate on fuel subsidy dangerous' Not a few Nigerians are worried or disappointed by the turn of events since Jonathan emerged as President on the promise of fresh breath. They are asking questions in social networks - twitter, facebook, myspace- about when the transformation agenda Jonathan promised in his inaugural speech will come. In the mean time, the President's list of 'sins' appears to be growing. Attempted tenure extension, keeping Nigerians in darkness, insurrection and insecurity, collapsed anti-corruption campaign, liquidation of excess crude account without value to Nigerians, troubled amnesty programme, abandoned key reforms (electoral accountability, petroleum industry, citizenship, etc), dishonoured national honours programme and now, fuel subsidy. The eagerness of Jonathan to go ahead with his economic team on the planned subsidy removal leaves the impression of a man desperate to correct a wrong impression. The eagerness at this moment of crippling insecurity that threatens foreign direct investments and implosion as a result of the sensibilities sparked, in part, by growing disenchantment with the six-month old administration, lessons from the 'Arab spring', a near total collapse of governance and seeming lack of direction and urgency in this administration, could create destabilising effects in Nigeria.
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