Fuel Subsidy Removal: Can There Be Gain, Without Pain? — Falade Urges Nigerians to Exercise Patience

HeraldersTimes Editorial 

Fuel Subsidy Removal: Can There Be Gain, Without Pain? — Falade Urges Nigerians to Exercise Patience.

It is important to give due credit for this tittle which is not mine. I lifted it from the 1982 aerobic exercise clip of Jane Fonda, an American actress who doubles as an activist. Fonda is one of the foremost proponents of this slang cum proverb or idiom in  today’s modern English use.

For the salient issues which this article tends to X-ray, time constraints won’t permit me to divulge any further on other available literatures that corroborate my views. Rather, this philosophical expression shall be narrowly considered in the context of the current happenings that hovers on the removal of Premium Motor Spirit (PMS) subsidy in Nigeria.

With respect to the title of this article — I have over the years found that Nigerians want happiness, enabling environment for business to flourish, rosy lifestyle — yet, nobody wants pains. For clarity sake, that doesn’t imply calling for physical pain nor  do I have anything on the contrary to this Nigeria way of life. It, however, got me wondering —if there could be rainbow in the sky without a little rain? I think the geographers could better explain the impossibility associated with this  simulated instance.

Suffice to say, the quagmire surrounding the hike in pump price of PMS nationwide is of great concern to all and sundry no doubt. As such, it propels me to lend my voice to the diverse views that rend the media space in the last one week or thereabouts.

Barely a week ago, Asiwaju Bola Ahmed Tinubu was sworn in as the sixteenth President and Commander-in-Chief of the Armed Forces. As tradition, which is practiced in any sane clime, it is required of the president to deliver an inaugural speech, which pundits and political analysts will examine as the pointer to  what the incoming administration portends, i.e what to  and how it would administer or  govern. It is the path or an outline or economic blueprints for the nation by the President. This is the expectation of the citizenry. Meanwhile, the  President same day lived up to the said expectation.

However, the President’s position on subsidy which has always been his mantra ever since his campaign days, and further reiterated on his first day of assumption of duty via his inaugural speech did not only catch the attention of the major marketers in the petrochemical  industry, but was rather capitalized upon to exploit Nigerians. Even before the President left the parade ground at Eagle’s Square, petroleum marketers unilaterally tripled the pump price of Premium Motor Spirit. What a gross aberration! The question begging for answer here is: Whether the President was wrong when he reeled out, that subsidy on petroleum products is gone? From a wider perspective which I shared similar view with, I think the President is being decisive enough in his  pragmatic approach towards subsidy. How do I mean? I have come to realise that , insanity is doing the same thing over and over again and expecting different results.

The question that comes to mind is: Whether petroleum products are being subsidized in the actual sense? With reference to the 2021  legislative committee that investigated the subsidy scheme. The report that emanated from the committee unravelled huge discrepancy between the amount of fuel that was subsidised. From the said report, Nigeria consumed about 35 million of fuel per day, the government paid 59 million litres, leaving a gap of 24 million litres that was either smuggled out of the country or over invoiced by importers. What a country!  This could rather be described as one of the biggest corruption scandal in Nigeria’s history. In 2021, It was learnt that Nigeria spent ₦2.3 trillions on fuel subsidies which is equivalent to about 18% of its budget , and more than its allocation for Education, health and infrastructure combined. While, in 2022, the government spent ₦4 trillions, about $9.8 billions on subsidies, which is more than its entire expenditure.

Inspite of the humongous amount being appropriated for subsidy in recent times.  Yet, we are still as radarless and rudderless as a nation without direction.  Of a truth, we are all yearning for a president that has the political will to bring about innovative changes. I think the young Tinubu’s administration approach to governance is indicative that relief is in the pipeline.  Whereas, on the contrary, some Nigerians are hell-bent on disparaging the President position on subsidy. Perhaps, party politics has enveloped their conscience — as such, they lost all sense of realism.

Moreso, emerging report has further revealed the said amount of money allocated to cushion the effect of petroleum products on the citizenry were being diverted to private purses by some powerful Cartels in the oil sector. Recently, a viral clip of the vice President His Excellency Kasshim Shetimma’s postulation about the thievery in the oil sector equally laid credence to series of previous reports in this regard. According to a world Bank report, only 15% of fuel subsidies reach the poorest 20% of Nigerians while 65% go to the richest 20%. It was further revealed that some importers even received subsidies for fuel that was never delivered or existed.

If I may ask:  Is this the same path many Nigerians who are casting aspersions on the sole decision of the President on subsidy removal, want us to continue towing. Whereas, unbeknownst to the chorus boys seen on the cyberspace that President Bola Ahmed Tinubu has only legitimzed what the Buhari led administration had constitutionalized in the 2023 appropriation, which is expected to take effect from July this year.

From a none partisan prism, it is needless to be told, neither the need for any further enquiry from either a soothsayer or an oracle whether the Tinubu era shall usher in good omen for Nigerians. What is expected of every Nigerian at the moment is to exercise patience, even as the President and his team are working assiduously to bring about the desired relief. Inspite of the hardships inflicted on Nigerians by saboteurs in the oil sector. I would further urge Nigerians to see the bright light from the horizon, because this phase shall surely pass. In circumspect, what Nigerians should be conscious about, in  the young Tinubu’s administration is decisive leadership at play. Unlike what was experienced in the last eight years or thereabouts that almost drifted the country along a precipitous lane.

Recently, it was reported by some national dailies— that President Tinubu has just reeled out some stringent measures to the Nigerian State oil firm  NNPC, chief among which that caught the attention of the media as instructed by Mr President is for the NNPC to wind down crude oil swap deal. To me, The President approach in this regard to nip in the bud shady deals under which our common patrimony is being milked by cankerworms in the oil sector is a rightful step aimed at curtailing extravagant spending incurred by government—which eventually ends in private purses without economic impacts on the masse

The subsidy removal debacle, reminded me of  the Latin maxim which says ” Res Ipsa loquitur” meaning— “the thing speak for itself”.  Does the term subsidy in context not mean a recipe for fraud? This has even been debated and proven to be. No doubt! Then, it got me thinking why the uninformed  are seen still drumming up support for it. Perhaps, for self-aggrandizement. Meanwhile, some logical minds are only calling for palliatives in the best interest of the Nigeria populace. Definitely, palliative will come. As posited by the President

Before I conclude this essay, my advice to Nigerians is that they should  exercise more patience and indulge the Tinubu’s administration further, which is barely a couple of weeks ago in government steering the ship of the country’s economy.

Fellow Compatriots, with pains comes gains. The pain in the context of this article is not necessarily the physical pain. It is a metaphor suggesting that however uncomfortable or difficult this subsidy fiasco may be, it will however—important to note—be short-lived in order to create the benefits. If We all want to enjoy the rainbow, let’s internalise the Boys Scout motto “Be prepared.” For through this can we endure this storm.

Falade Oluwasegun Samuel — FOS, is a Public Affairs Analyst.

He writes from Akure the Capital City of the Sunshine State.

You can reach him via Shigofaraday@gmail.com