PRESIDENT Jonathan's national broadcast two Mondays ago was quite instructive and intriguing. It sends a myriad of messages to several segments of the nation. It was a speech which finally revealed the sterner side of Mr. President. It may have vindicated those who say that the Nigerian democratic experience is devoid of the ideals and philosophy of an egalitarian society. No attempt was made in the broadcast to calm frayed nerves of the populace or sympathise with the families of those who lost their lives. It was expected that the President would, at the least, while not agreeing with the protests, recognise the voice of the majority which is sacrosanct in any true democracy. Rather it was a throwback which reminded not a few of the 'Enough is Enough' speech by the late military ruler, General Sani Abacha soon after taking over the reins of government in 1993. The deployment of heavily armed soldiers simultaneously brought back memories that are better forgotten.The lockdown created by the labour and civil society protestation of the hike in fuel prices was the first major test of the government's civil crisis management credentials. The mass action was unprecedented in recent times as government was left on its own to deal with a quagmire which was its own very creation. Aside of a pocket of individuals, it was like the generality of the populace, including the professional class and nouveau riche, had an axe to grind with the government on the new fuel price regime. Government insistence on shoving the policy down the Nigerians' throat without first articulating the consequence on an already over-burdened populace in the midst of its own virulent opulence was nothing but stoking a fledgling fire. Most worrisome was the fact that officers of government meant to propagate the new policy thrust never really succeeded in convincing themselves let alone the populace on the need for deregulation. They were barely articulate. According to some of them, the policy was meant to free the government of the encumbrances of a subsidy regime that was nothing but a luxury in current economic realities. This would make more money available to government to provide the needed infrastructure in health, education, road network, reducing the high incidence maternal mortality rate in the country etc.As laudable as it sounds, government officials made it look like a 'cure-all ailments' therapy for all our economic problems. Unfortunately it exposed the government's underbelly of not having a thorough prognosis before foisting the new policy. The palliatives as announced became an after-thought and an attempt at reconciling with the people. As usual, we had put the cart before the horse. It further reinforced the notion that in Nigeria it is development before planning.This is perhaps the major fault line on our road to a better society. Also characteristically, the government, with prompting from opponents of the policy, suddenly woke up to its responsibility and announced an inquiry into the subsidy regime and a probe of PPPRA to determine those who had benefitted illegally from the subsidy regime.The 2011 subsidy figure of N1.3trillion, a mind-boggling sum, had become an embarrassment. To the discerning mind, the inquiry instituted by the Senate late in 2011 and the irreconcilable figures from the different agencies of government namely, NNPC, which has become a behemoth, Ministry of Petroleum Resources and PPPRA on the same issue was enough indication of the rot that had taken over that sector. Some things needed to be taken care of to save the nation the colossal loss and reputation damage that was going on. The bazaar kept getting bigger by the day. But mute was the word from the presidency. Only time will tell if the current inquiry by the House of Representatives would yield any tangible result.Many have criticised government's disconnect with the people and lacklustre communication of its policies. The use of military might to suppress the agitation may have succeeded but a post mortem will show that the government nay Mr. President, has unwittingly lost a sizeable chunk of his brand equity. The gentleman, can't-hurt-a-fly, feel-good, fresh air factor on which he rode to victory in the last elections may have been dealt a severe blow.His aides and advisers who canvassed a tough guy stance for the President may have done him little or no good. In any case they would come off the whole saga better off. I bet many of them whenever they leave government would be quick to exonerate themselves and claim they were merely trying to be loyal to the administration and had indeed advised the President against taking such an unpopular step.This is the usual trend and the President should have known that his own political image and stature was at stake. Hence it was a surprise that he allowed economic consideration to reason far above political and social reality. Attempting to balance the books has led to a path he may not ordinarily have chosen.Agreed that the federal government is broke and needs more funds to provide infrastructure and take care of the insatiable consumption pattern of its officials so there was the need to remove fuel subsidy. This was also advised by the US government. But the Obama administration even with the near collapse of the US economy last year will never consider stopping the various social subsidies, including employment vouchers it provides for its citizens. Or better still, ask the Conservative government of David Cameron in the United Kingdom if the huge sums provided yearly for the NHS can be withdrawn and diverted to provide better infrastructure.It is obvious the need to generate money for the government is the root of the fuel hike rather than the need to deregulate the oil sector. Absolute deregulation would entail the government handing off the product supply and distribution and allow market forces to determine the price. Giving a price range of N139 ' N141 means the product is still regulated therefore a private investor is unable to charge the actual cost of the product.I have always believed that if government totally hands off fuel supply, the price may rise on the short run but crash once there is no barrier to entry or exit of the market. We would definitely witness a significant price drop in no time because the systematic corruption and inefficiency costs built into the present arrangement would have been eliminated. What you have presently is a monopolistic competition which has encouraged the few importers forming a cartel. This is the under-lying reason why the refineries are comatose. What becomes of the economic fortunes of this highly connected group if we stop importing petroleum products' How about their 'cousins' who own the several private tank farms and jetties solely for imported petroleum products and petrol tankers purchased solely for the 'supply bridging' arrangement put in place by NNPC' They would do all in their powers to ensure the status quo remains for as long as possible. Unfortunately they are the friends of government and biggest contributors to campaign funds. That is the cross-roads the government has found itself.Again, Mr. President for no apparent reason seem to defer not a little to the state governors whose ignoble role in the crisis is less apparent. They have continually agitated for more from the Federation Account, insisting that is the only way they can meet the new minimum wage. Our governors, in their respective ego trips are not considering running their states as viable enterprises which can generate as much IGR as possible to meet their obligations to the people. Why would a state in a true federation depend solely on federal funds to meet its obligations, both capital and recurrent. Simply put, it means such state is not economically viable.The creation of so many states rather than bring speedy development to the grassroots has resulted in duplication, waste and dependence of the federal government for survival. So, let's start right-sizing. As many states as belong to this category should be encouraged to merge or legislated by the National Assembly to fuse into one.The National Assembly itself is no less a drain pipe to public funds. A group of less than a thousand political representatives gulping no less than 25 per cent of annual expenditure is a sure recipe for economic disaster and fiscal deficit. It is obvious an economy such as ours cannot sustain a bi-camera legislature with world record remunerations with little or nothing to show for it. Shouldn't Nigerians in the light of current economic realities begin to think of a constitutional amendment or referendum to make for a unicameral legislature to reduce cost of governance' If indeed our politicians want us to believe they are in government to 'serve the people' then they should consider making sacrifices and be satisfied with only sitting allowances for their services.The President, governors and their appointees should also consider residing in their private residences while serving in government as obtainable in Ghana. Our situation as a nation is pitiable. The problems go far beyond the rhetoric of a one and indivisible entity. As long as our leaders continue to play the Ostrich in the desert, Nigeria remains a rudderless ship far from the shore at the whims and caprice of nature.Ejoor is a Lagos-based business executive.
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