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President Jonathan and the fuel subsidy impasse (2)

Published by Nigerian Compass on Wed, 09 Nov 2011


As much as the development of critical national infrastructure is important, deliberate fiscal policies must also be developed side-by-side to strengthen the purchasing power of the citizens.In addition to the creation of new jobs, the removal of fuel subsidy will enable government build more roads, schools, and hospitals, etc. We must, however, accept the fact that citizens will still pay for services rendered in the new hospitals and schools that will be built with money saved from the withdrawal of fuel subsidy. The transporters that will use the new roads and rail lines will not keep fares down because they were built with money saved from the removal of fuel subsidy. With the weakening of the purchasing power of citizens, poverty will not allow the masses to enjoy the benefits of the new infrastructure government intends to develop. Good governance is the road that leads to economic growth and political stability. A prominent feature of good governance is mass participation. Because of exigencies, it will not be convenient for citizens to vote on every government policy. The masses are therefore left with no better option than to invest their confidence in elected and appointed officials. Ordinarily, these officials are supposed to protect the wider interests of the society. This has never been the case. Most elected and appointed officials simply ignore the feelings of the people and follow their shallow and narrow minds. This is responsible for why several government policies are anti-people. The planned removal of fuel subsidy is one of such policies. It would do the Nigerian masses more harm than good. One thing has become clear following the debate that has trailed the decision of the federal government to remove fuel subsidy next year. There is no enough money to sustain the nation's socio-economic framework. Unfortunately, the well-motivated fiscal policy formulators and hoard of economic experts have run dry of ideas to help raise the needed funds to keep the nation afloat. This problem is caused by their refusal to accept the open fact that a coin does not have only one side. They always see and reason based on the side of the coin they are facing. Little wonder why only a few wealthy Nigerians who can afford to buy a litre of fuel even at N200 are supporting calls for the removal of fuel subsidy. I am very convinced that they would all sing a different song if they earn N100,000 a month. By their mien, those calling for the removal of fuel subsidy has joined spirit with Cain who queried God for expecting him to be responsible for his brother's safety or good. Going by the colour of anger being expressed by many, it is very likely that the masses would raise their voices against the Goodluck Jonathan administration if it goes ahead with the planned removal of fuel subsidy next year. This is the ultimate desire of the West. They want Nigeria and the rest of Africa to be continuously enmeshed in political turmoil in order to sabotage her economic recovery efforts. Already, the United States believes that Nigeria will disintegrate by 2015. Seen and unseen hands have been positioned to turn the masses against President Jonathan. In return, the Niger Delta people will be instigated to cry fowl and forced to rock the foundation that carries the destiny of Nigeria. This is the wish of the developed West. The fuel subsidy culture is a shame. As the world's sixth largest producer of crude oil, Nigeria does not have any excuse to import fuel to service local demands. The federal government can end fuel subsidy by making our four refineries work at optimum capacities. Of all the OPEC countries, the pump price of petrol is costliest in Nigeria. Why is this so' Is there anything other OPEC countries are doing that we are not' This is the question our nation's fiscal policy formulators and economic experts should have asked themselves. Instead, they are pouncing on poor and hungry masses to cover up their incompetence. Nigeria belongs to Nigerians. The oil and gas wealth belongs to Nigerians as well. We therefore have every corporate right to enjoy the benefits of oil and gas just like citizens of other OPEC countries are doing. Let us find out how is it that a litre of petrol sells for about N18 in Saudi Arabia and just N9 in Venezuela. The fact that our oil industry is fowled by corruption is no longer in doubt. What is in doubt is the desire or ability of government to tackle the cabal that has for so long been milking the Nigeria people dry through fuel subsidy. This writer does not however support the idea of punishing the masses through the withdrawal of fuel subsidy as an option to fight the cabal that is hiding behind subsidy to milk the nation of trillions of Naira. Making our refineries work at optimum capacity is the best way to end fuel subsidy. The pump price of fuel will climb down below N65 if petrol is refined locally. Let us study the Venezuela model and do same in Nigeria.
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