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Fuel subsidy: A question of leadership

Published by Guardian on Fri, 27 Jan 2012


HAVING seemingly restored a semblance of normalcy in the polity by reducing the price of petrol to N97 per litre, President Goodluck Jonathan and his entire cabinet must recognise that the peace so far achieved is that of the graveyard. The new fuel price will neither remove the economic indices, particularly inflation, threatening to further impoverish the average Nigerian; nor will it assuage the citizens' anger and distrust of the government, or the forceful termination of their legitimate protest. If anything, the prevailing atmosphere is only a lull to enable government promptly address all matters arising.In a democracy, it is not always that the opinion of leaders coincides with the wishes of the people. On such occasions leaders make every attempt to enlighten the public on the issues involved and the means of achieving the desired objective, including the consequences of not taking the action advocated. If in spite of every entreaty the people remain unconvinced, a democratic leader will withdraw the initiative and seek other creative ways of reaching the same goal. A government that mulishly implements its policies regardless of the expressed disapproval of its own people becomes open to accusation of tyranny, and is to that extent, undemocratic.The ensuing strike on January 9, 2012 was an inevitable outcome of the trauma of a people who elected a democratic government that now appears to be impervious to their plea that the removal of fuel subsidy will worsen poverty, remove the gains of the new N18, 000 minimum wage and increase inflation, given the multiplier effect of the product under discussion. Many Nigerians were disappointed when the organised labour suddenly announced the 'suspension' of the strike following government's 'unilateral' reduction of the pump price from an 'irreversible' N141 to N97 ' a halfway house from N65, leading to the patch up of the present uneasy calm, albeit with the aid of soldiers.In retrospect, several learning points can be deduced from what has occurred. First, Nigerians having suffered from years of failed promises no longer believe their leaders which often promise what they do not deliver. It is up to the current government to make itself believable through its conduct. Nigerians have become more enlightened than before and are hungry for good governance and accountability.With the advent of modern information technology, the era of running government business as if it were a secret society is over. Nigerian governments will henceforth be compelled to listen to the people whether they like it or not.Second, Nigerians are aware that corruption is at the heart of the country's problem. The so-called cabal of fuel importers is a product of corruption as are the smuggling of refined products to neighbouring countries,the over-invoicing of imported fuel, inadequate monitoring of crude oil sales by NNPC, and the billing of the Nigerian nation for products not supplied.The country got into this mess of fuel importation simply because it lacks adequate refining capacity. Surely, the best way to cut off this haemorrhage is to build more refineries. For a government that builds no roads, no new bridges, no new railway, no new harbour, no commuter system, and no new airports, is it asking too much for it to build refineries under some mutually acceptable arrangements with foreign partners' Subsidy will become a non-issue when the country ceases importation and refines the product instead of subsidising the cost of producing abroad.Third, government must put in place substantial measures in the form of palliatives to cushion the expected effects of the current price, or the price when government fully deregulates. These measures should adequately address the basic needs of the people including, but not limited to public transportation, employment, education of their wards, roads, healthcare and security. The idea of removing fuel subsidy and asking people to bear the brunt while promising them a better tomorrow is unworkable and akin to putting the cart before the horse. Besides, the President and all other public officials must lead by example in making personal sacrifice.The horrendous cost of governance is at the heart of the people's disenchantment with the government. The profligacy of the Presidency is well documented ' from kingly cuisine to a fleet of posh cars and jets. The legislators who are pretending to be on the side of the people have become a nation's nightmare and an obstacle to good governance. How can anyone justify emoluments that bear no relationship to any other employment in the country' How can anyone justify a package that easily dwarfs into insignificance those of their counterparts in the developed countries' President Jonathan cannot impress as a transformational leader until he tackles the astronomical cost of governance at all levels of government. Cutting salaries of presidential staff by 25 per cent is not sufficient. He should seek to remove the many rapacious allowances that bestride the Nigerian system of government. He should push to eliminate the odious constituency allowance of legislators and severely restrict his, and state governors' security vote, which despite its non-accountability and quantum, have failed to contain the security crisis in the land. Governance as a vocation should be made less attractive in order for those who truly believe in the honour of service to emerge.Finally, a government that is at 'war' on various fronts must seek accommodation.Is this not the right time for a thorough examination of the Nigerian question to assuage the pervasive unhappiness of the people now compounded by security situation in the country
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