The federal government of Nigeria through the Minister of
State for Petroleum, Dr Ibe Kachikwu announced new price regime for premium
motor spirit (PMS), putting it at a ceiling of N145 and a total removal of subsidy from the price of PMS. Under
this new arrangement, the market is also opened to whoever is interested in
importation of PMS with a condition that you may have to source for FOREX other
than from the Central Bank of Nigeria (CBN).
Immediately after this announcement, fuel marketers have
adjusted their pump price to N 145
leaving Nigerians in confusion, pains and dissatisfaction. In no time, transportation
fare across the country has increased not only from yesterday but since March,
2016 when shortage or scarcity of fuel has prevailed in the country.
Nigerians currently battling increment in prices of
foodstuffs and other commodities will have to add additional pain of paying
more for PMS. Is the removal of subsidy at this time right or wrong? Nigerians
have reacted and more reactions and analysis are still coming in, the social
media have witnessed a storm about this topic since yesterday, many have
condemned this new policy, many have embraced it, and many are undecided. Of
those who have spoken against the new regime are those who from their low level
of literacy could not really understand the intention of the government, to
this set of people, government just increased the price to bring untold
hardship to the citizens for no reason, they don’t believe there is anything
called subsidy or low yield from crude oil sales; the other set of those who are
against removal of subsidy are the people from opposing political parties to
the ruling party who felt the last administration attempted to withdraw subsidy
from PMS but the people resisted it and therefore it must be sustained. The
people in support of the removal of subsidy have seen it from another dimension;
that it will ensure availability of the product in the market, generate employment,
new investments and more money to the government to carry out developmental
programmes. This set of people have also said, it was not proper for government
to remove subsidy as attempted in 2012, claiming that price of crude at the
time was about $130/barrel and corruption was the other of the day on subsidy
payments at the time.
In my own opinion, I support the removal of subsidy if it
will remove scarcity of PMS and guarantee the other economic gains highlighted
by the government, Nigeria can no longer afford to pay subsidy when the price
of crude is below $40, when monthly allocations to various states has reduced
drastically that the states can no longer pay salaries, when infrastructure is
in decay, when standard of education is declining, when the healthcare delivery
system is failing by the day. Nigeria is broke, things are not working as they
should and we have to think outside the box. A country that was not able to
manage prosperity and boom must face the reality coming with recession, it is a
cycle and we must experience every facet of it. Government needs to also talk
about cost of governance in Nigeria, how much do political appointees earn? PA,
SA SSA, Chief of Staff, Press Secretaries, Ministers, Commissioners, Supervisors,
Senators, MHRs, Councillors, Members of State House of Assemblies, Council
Bosses, Governors, President e.t.c, how much do these people spend in running
their offices? And they have no significant contributions to the government. In
Nigeria, a special adviser also has his own special adviser, we have PA to the councilor,
PA to the commissioner, PA to the supervisor, PA to the chairman, PA, SA and
SSA to the governor, senator or president, all of them are remunerated from the
public purse. The government must look into this; we can have a unicameral
legislature instead of bicameral. Let the masses feel the impact and necessity
of governance. We hope Nigeria will surmount her challenges and we pray for
quick economic recovery and prosperity.
Wale Adetarami lives in Lagos
@WaleAdetarami
