One of the main issues of national discourse in the last couple of weeks is the controversy generated by the Federal Government's intention to withdraw fuel subsidies.According to the federal government, Nigerians should prepare their minds for the withdrawal to take place with effect from January, 2012. About the most inflammable cause of industrial conflict between government and the labour movement, subsidy withdrawal has always been adduced as reasons by government to increase the pump price of petrol.At all times that happened, labour always shut down the economy through strikes and protest rallies. It had also led to a law suit in which the Federal Government was the claimant and the NLC the defendant. The court ruled in favour of government, to wit: that the law establishing the NLC only empowered it to regulate the terms and conditions of employment and not to complain about the proprietary or otherwise of the pricing of petrol.For the first time in recent memory, the first salvo on this issue was shot from the Legislature to the Executive. Former Governor of Kwara State and now a Senator, Dr. Abubakar Bukola Saraki had raised a motion that the management of fuel subsidy needed to be investigated. Senate President, David Mark, concurred that there was a cartel in the petroleum industry that has robbed the Nigerian people of the benefits of the subsidy. More than 113 Senators contributed to the Motion, severally accusing government of spending beyond the amount appropriated for fuel subsidy without recourse to the National Assembly as required by law.Organised Labour, the Manufacturers' Association of Nigeria (MAN) and Councils of the Nigeria Union of Journalists (NUJ), among other civic organisations, insist that the claimed subsidy must remain, saying that the ripple effects of such withdrawal would be spiral inflation that would worsen the situation of poverty-stricken masses.There is now a dividing line between those who are for and those who are against the withdrawal of subsidy. Proponents of subsidy withdrawal say the benefits go into already fat pockets of a few individuals instead of alleviating the problems of the masses.One computation goes thus: Landing cost of fuel importation is N129.21 per litre, transporters and marketers earn N15.49 per litre, so expected pump price should be N144.70 per litre. If official pump price is pegged at N65.00 per litre, it therefore means that government subsidises with N79.70 per litre. With supposedly consumption rate of 32 million litres (some say far less, some say far more) per day, subsidy per day comes to N2.6 billion or N494 billion per annum.Another computation, as expressed on the floor of the Senate, is that it takes trillions of Naira every year for government to subsidise fuel.These are different figures with wide margins. It lends credence to the claim that Nigerians are in the dark as to the accurate measure of subsidy. Suleiman Adoke, Chairman Senate Services Committee, was quoted as saying that the 'Nigerian National Petroleum Corporation's account is shrouded in so much secrecy and nobody knows what was going on there. It's a fundamental error that a majority organisation like that, which is responsible for our wealth, has its activities shrouded in secrecy and its budget is not subject to scrutiny by the National Assembly. Its budget needs to be properly scrutinised so that we would know how they are managing the subsidy!'Curiously, the past administration of former President Olusegun Obasanjo claimed that it had abolished subsidy. Could it have been brought back by the succeeding administrations through the back door' Numerous incomprehensible policy summersaults have left Nigerians disenchanted, disillusioned, sceptical and cynical of uncountable government initiatives. At best, they have resigned to fate and despondency, which a late politician described as 'siddon look'.President Goodluck Jonathan, having ascended to power on massive goodwill, must not fail to deliver on his promise to transform the society. He must throw political will behind the attempt to clear the air surrounding the money-guzzling subsidy racket before its withdrawal.We support those who are demanding openness and transparency in the transaction. Government must put all its cards on the table before withdrawing subsidy. No such steps should be taken unless it can carry the people along and everyone is kept in the picture. The entire process must be clear and easy to understand. Ordinary Nigerians should be able to fully understand the advantages or otherwise of the situation. Conflicting figures must no longer be dished out to the public to gain sympathy. Rather, we believe that the situation demands that a crystal-clear picture be presented once and for all. Government must also consider the consequences of inflation and unbridled price hike when pump price goes up.All the foregoing however remain short-term measures. Far-reaching eradication of importation of fuel must be the bigger picture and processes set in place to achieve this. Oil-rich countries like Nigeria must also have the capacity to produce refined products to meet all their local needs. The ordinary citizen must not be penalised any further for the continuous inefficiencies of government on this matter. Once Nigeria can refine the fuel it needs for consumption, the cartel, the subsidy and the racket would all have no place to hide. Government's energy must be concentrated in this direction.
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