Monday, 21 May 2012
A Vote For Removing (Political) Subsidies By Okey Ndibe
Okey Ndibe
Columnist:
Okey Ndibe It seems fairly settled that the Goodluck Jonathan administration and his cohorts – in the business as well as political sectors – are dead set on removing so-called fuel subsidies in a matter of weeks. Nigeria’s dispossessed majority should, I suggest, serve notice of their determination to resist this heist that’s being cloaked and sold as sound economic policy.
Greed and callousness seem to be at the heart of the crusade to hike the price of fuel products. The argument has been made, at the state and national levels, that fuel subsidies guzzle resources that should be invested to provide absent, much needed infrastructure. This argument would have a measure of traction in a political space run by serious-minded, visionary leaders.
Nigeria is far from being such a space. It is, instead, the fiefdom of the most inveterate gluttons and fraudsters who can’t spell the word vision, much less demonstrate it. Most of Nigeria’s political authorities, whether local government councilors, commissioners, ministers, legislators, governors or the president, are driven by the impulse to put away as much of the nation’s resources that’s within sight as possible. Few, if any, of them spend even a few minutes a day meditating on what it would take to transform their country to the same level of development as obtains in the European, Asian, or North American nations where they relish to luxuriate.
I have always felt that Nigeria is engaged in the wrong subsidy debate. For one, it is not clear at all that what Nigerian officials call fuel subsidy really exists – as opposed to being official hocus pocus, a kind of manipulative game. In fact, it’s been suggested by those who ought to know – including former Minister Tam David-West and economist Sam Aluko – that the nomenclature of fuel subsidies is a cloak for a massive, mindless corrupt scheme. There are anecdotes of mindless fuel importers who collude with venal government officials in multiple tripping scams, whereby each shipment of refined fuel is counted numerous shipments. The game ensures obscene windfalls and levels of profits for unscrupulous bureaucrats and corporate profiteers. There’s something callous about seeking to foist the burden of corruption on Nigeria’s most vulnerable, already deeply pauperized population.
But even if there’s an animal called fuel subsidy, and even if it gobbles up a huge chunk of the nation’s resources, it does not follow that erasing the subsidy is the way to go. Why has the government not focused, first, on building more refineries in the country? Some official apologists are wont to contend that the government is a wretched player in the business arena. And that the more astute private sector investors are wary of the government stipulating what they must charge. If the government’s reported ineptitude constitutes legitimate grounds to avoid investment in new refineries, then why don’t we invoke the same argument to privatize all aspects of the government? After all, Nigerian governments have proved awfully incapable of providing security, healthcare and electric power, running schools, tarring roads, curbing or prosecuting corruption, and holding credible elections.
Besides, why has the current government failed to probe what happened to the billions of naira invested in refurbishing the country’s four refineries? Who pocketed all that cash? Whose collusion enabled the illicit transactions to proceed?
A major plank of the government’s case is that the artificially low price of fuel products foments cross-border smuggling of petroleum. That contention is nothing short of the Nigerian government’s implicit admission to being derelict. If a country that maintains a full complement of security officials as well as customs officials at border posts cannot curtail the smuggling of tanker-loads of fuel, then it is more floundering – even lost – than one ever suspected.
It was only the other day that labor negotiators managed to wrest a minimum wage of N18,000 for Nigerian workers. In fact, many state governments are still holding out, protesting that they lack the funds to implement the minimum wage. And yet, two or three Nigerian friends could enter a restaurant and spend more than N18,000!
One is aware that some critics of the minimum wage are quick to accuse Nigerian workers of indolence, an allergy to assiduous work, and of being notoriously unproductive. You won’t catch me denying any of these charges, or defending them. I’m all for holding the Nigerian worker – by all means – to a much higher level of productivity. I have had occasion to upbraid Nigerian civil servants for slumbering on their jobs, displaying terrible manners towards the public, or adopting an attitude of nonchalance towards their tasks.
Still, the Nigerian worker’s unimpressive work habits pale when juxtaposed against the shoddiness and mediocrity of most Nigerian politicians. Each member of Nigeria’s parliament in Abuja rakes in more income every three months than President Barack Obama makes in a year! Each Nigerian governor’s monthly security vote is enough to pay Mr. Obama’s salary for four years – with cash left to spare!
And therein lies the tragic rub. Nigerian workers, professional groups and opposition forces ought to tweet a clear message to Mr. Jonathan. They should tell him: “Sir, you’re looking at the wrong subsidy!” If the man is in a haste to subtract subsidies, why, he ought to start by plugging the subsidy called official corruption. If he collected even a mere ten percent of the funds stolen by Nigerian public officials, he is bound to have a hefty purse to devote to developmental initiatives.
At any rate, Mr. Jonathan should be told (indeed, forced by a general strike if need be) to push for a drastic reduction in his own privileges as well as those of his cohorts. Nigerians should insist on removing the millions of dollars that each local government chairman, each governor, each minister, and the president squander on themselves whilst doing largely mediocre, if not wretched, work.
Mr. Jonathan and other Nigerian government officials cannot, in one breath, proclaim that Nigeria has no money and, in another, live opulently off of Nigeria.
Nor should Nigerians take seriously the canard that the government must remove fuel subsidies in order to free up funds to enable massive investment in infrastructural development. Former President Olusegun Obasanjo used that disingenuous argument each time he jacked up the price of fuel. Alas, Mr. Obasanjo had no infrastructure to show for it, but Nigerians certainly experienced a spike in their misery index.
It’s time Nigerians stood up and said to Mr. Jonathan, “Not again!”
Ambassador Bianca Ojukwu: Jonathan’s Impropriety
One knows that Mrs. Bianca Ojukwu, lawyer, ex-beauty queen, and the recently bereaved widow of former Biafran leader, Dim Emeka Odumegwu Ojukwu, is highly gifted. Even so, President Jonathan violated all sense of propriety when he announced last week that Mrs. Ojukwu is on his list of nominees for ambassadorships.
Let me stress again that the nominee is eminently qualified for the job. Yet, there’s no excuse for Mr. Jonathan’s haste to reveal her nomination. She had just lost her husband only days before, and his remains have yet to be conveyed back to Nigeria. What was the point, then, of hastening to announce her nomination? Was there not a single person in the president’s circle to caution that the timing of the announcement was in singularly poor taste, that it could be construed as an act calculated to disesteem the memory of Mrs. Ojukwu’s late husband?
Surely, neither the government nor the nominee – nor, for that matter, the Nigerian people – would have sustained any harm if the announcement of Mrs. Ojukwu’s nomination had been delayed until after her husband’s burial. Until Ikemba Nnewi is committed to earth, it is highly unlikely that Bianca Ojukwu would present herself for senatorial clearance. If she did, she would be seen as trivializing and dishonoring her late husband’s memory, and the outrage would be wide and devastating.
If the administration’s point was to register in tangible terms its sympathy for a grieving wife, then its particular choice of gesture – or, rather, its timing – exemplifies poor judgment. It is deplorable that a government should so thoughtlessly interject a political appointment into what should be a moment reserved for the mourning of the late leader by his wife, family, and admirers.
Email: (okeyndibe@gmail.com)
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Fuel subsidy removal will hasten our emancipation!
Submitted by Anonymous (not verified) on December 13, 2011 - 09:39.
I pray let there be no subsidy! I’m sure they are gradually and unknowingly leading themselves to their destruction which shall culminate an era of corruption in our beloved country.
The monster of perpetual enslavement shall one day rise to demand for the atonement of the locust period. A time is coming nigh when all locusts, caterpillars and cankerworms of our beloved country shall the gathered together, judged and silenced according to their co-efficient of destruction.
Then, a true Nigerian shall speak of true federalism and all Nigerians shall hear and do according to what is just and right in the sight of God
a vote for removing(political)subsidies
Submitted by Anonymous (not verified) on December 12, 2011 - 16:26.
You said it all.i am tired of talking about the removal of fuel subsidy.The sad part is the GEJ government is living up to all i tot they'd be.I dint vote for him(thank God).Its so sad that a man who grew up(as attested by him)not rich,would be so insensitive.He has no empathy'.The God(Jehovah) they keep mocking at the Villa Chapel will judge them ALL.
SUBSIDY Removal is the beginning of wisdom pt 2
Submitted by Jaji (not verified) on December 11, 2011 - 22:08.
But if NNPC sells fuel @ $30/bbl then refineries will sell at 65naira. Meaning no more money for govt to run the country and we will become a SOMALIA and we will all destroy the country. The solution is NOT building more refineries by the incompetent govt . The 1st key issue is at what price do you want to sell CRUDE to Nigerian refineries. The 2nd issue is that Nigerians have to choose if they want Govt to build/run refineries or they want market forces and private people to run refineries. Do you have faith in govt to run refineries or in the private sector to run refineries? It is sheer stupidity to put any FAITH in govt to run anything in Nigeria. Pls lets wake up from OUR lazy minds and think of our future. Govt have failed us all on all fronts..lets tie our faith to the private and market-dependent forces. This is how we killed and bypasses NITEL. Now there are 80 mill phone lines in Nigeria.
Subsidy Removal is the beginning of WISDOM
Submitted by Jaji (not verified) on December 11, 2011 - 22:05.
I am so dissapointed in the effort of Okey Ndibe to TWIST realties. Again, the poor educational system in Nigeria has grown multitude press writers and illogical thinkers. Okey Ndibe showcases the average Nigerian ignorance. Why would you argue that there is No Subsidy. When Crude Oil is sold for $100 per bbl, the mathematically equivalent PMS price is about 132naira/Liter. The only reason that you can argue that subsidy is NOT present is if the Crude is $30US per bbl then crude will be 62naira/liter. The globally used formula is $x/gal of petrol = 128naira + $y/gal of crude oil. If crude is $50/bbl, the petrol is 82 naira/liter. Pls, lets not take advantage of the poor education and ignorance of our population and heighten their suspicion on false premises. SUBSIDY of 75naira exist in Nigeria. You buy @ 132naira and sell @ 65naira. But if NNPC sells fuel @ $30 per bbl then refineries will sell at 65naira.
Great leaders never dies
Submitted by Islove (not verified) on December 9, 2011 - 13:24.
oil subsidy should be remove. those oil companies involved secretly belongs to former nigerian rulers. there is nothing like that, people make life easy.
Can Goodluck bite fingers of subsidy stealers that nurtured him?
Submitted by Elmango Meat (not verified) on December 8, 2011 - 22:40.
Former Illinois Governor Rod Blagojevich goes to prison of up to twenty years, having been found guilty earlier on corruption charges, including attempting to sell President Barack Obama’s former U.S. Senate seat.
Here in Nigeria, Major contributors to Goodluck's election campaign are the same ones on the list of round trippers and purveyors of death for the common man - the subsidy stealers!
I guess if they were in the state like Illinois, they would be going for 120 year prison term each.
How could anyone ever expect Goodluck to bite the fingers that fed it?
Bye Bye to Fuel Subsidy!
Submitted by Ifeanyi-Democracy 4ever (not verified) on December 8, 2011 - 19:22.
Unfortunately I have to pay more for fuel next yr because come Tuesday next wk,the president will present the 2012 budget to the NASS and not even N1 was put in for fuel subsidy. Fortunately I own a POWER INVERTER to bridge the gap in public power supply and this does not require fuel. My only problem is how to cope with fueling my car next yr because i dislike using public mass transit. This is the inevitable challenge we all have to face next yr. I just hope the govt of the day will live up to expectation in management of the postsubsidy era so that OUR SACRIFICES will be worthwhile.
Is he calling for the Incapacitation of the Nation?
Submitted by Ayodele Amos (not verified) on December 8, 2011 - 13:41.
Am not going to support this to further cripple the economy and cause serious damage to our fragile democracy and unity as a Nation.No! it`s ill time unless is motive is the division of the Nation,whose of cause will not happen in GEJ time.
Okey Ndibe,an all sponsors of blackmail an acrimony for the partitioning of this Nation by 2015 should know that the consequences will not be palatable.Dialogue is the only way out anything contrary will be resisted.
ITS QUIT UNFORTUNATE
Submitted by Peter (not verified) on December 8, 2011 - 13:12.
Its quite unfortunate that our leaders still think we are asleep. Anyway, a day is coming when the masses will reach their elastic limit in suffering, that day, oh how I wish it comes quickly! Just imagine a farmer who produces yam, takes it to the market to sell and then buys fried yam for the family. Next day, he tells the family that their is no money for soap. Is this not very funny? But that is exactly what the Nigerian govt is playing out. Only time will tell. I rest my case.
We have been helping this Nation now...
Submitted by Importers forum (not verified) on December 8, 2011 - 10:53.
If is confirmed that GEJ wants to take us out of business by removing subsidy,then we will encourage the mobilization for a large scale war.We have the capacity to settle labour union leaders,civil society,people like Tam David West; Jonathan kins man and Okey Ndibe the foolish Igbo man who need appointment and money to settle his bill in the US they are not incorruptible.
We importers association in Lagos will caused unimaginable damage to the economy if they dear it.The ACN government in the west will ques for this struggle.We have spoken!
When corrupt politicians or business people in Nigeria start get
Submitted by Frank Phil (not verified) on December 8, 2011 - 01:12.
When corrupt politicians or business people in Nigeria start getting nothing less than 10years for corruption, injustice or mismanagement like
Blagojevich just got in the USA (see below url). Then all this nonesense going on in our nation will stop and we'll start reaping the benefits of integrity, diligence and accountability in leadership service to Nigerians!
ASHIM JUMBA IS ALSO DERI THE SNITCH
Submitted by osita DIOKA (not verified) on December 7, 2011 - 14:12.
He claims to fight for his clans man the President but he is the most unpatriotic and pathetic fellow on this forum,he is a coward who is afraid of using the name Deri when he embarks on his hatchet job of tanishing the Igbo image which actually intimidates him.
CULTIST LEADERS
Submitted by MORRISON (not verified) on December 7, 2011 - 10:45.
How do you expect good governance when almost 100% of our leaders belongs to the same cult group where the devil is their leader ,afterall the bible said that.."WHEN THE WICKED RULES THE PEOPLE WILL SUFFER AND WHEN THE RIGHTEOUS RULES THE PEOPLE WILL REJOICE".
CULTIST LEADERS
Submitted by MORRISON (not verified) on December 7, 2011 - 10:44.
How do you expect good governance when almost 100% of our leaders belongs to the same cult group where the devil is their leader ,afterall the bible said that.."WHEN THE WICKED RULES THE PEOPLE WILL SUFFER AND WHEN THE RIGHTEOUS RULES THE PEOPLE WILL REJOICE".
The next step is the REVOLUTION!
Submitted by Okwuchukwu Ezeanyika (not verified) on December 7, 2011 - 00:54.
Dianyi Okey, you have again not disappointed with this brilliant piece. For now, I am counting the days and events that would bring about the actualization of Biafra.
Still, I wish Nigeria well, that is, the entity that would remain as Nigeria. Let me nominate for them those they should call upon to lead the country following the revolution:
-Alhaji Galadinma (Buhari acolyte)
-That ex-Judge from then Bendel State who chaired INEC at a time and said if he sees N1 million he would faint. He was the only INEC Chairman ever NOT to collect 'egunje.'
-Major General Ishola Williams
-Col. Abubakar Umar
-That Judge that jailed Bode George
-That young Reverend Minister who preached at Bode George's thanksgiving service following his release.
I have a total of 100 names and would be releasing them periodically.
Very Good Piece
Submitted by Yangeh Dueh-Richardson (not verified) on December 7, 2011 - 00:27.
As usual I am not disappointed with your piece. I have pmade this proposal that:
Instead of subsidising imported fuel, let government as a matter of urgency ensure all the petroleum product importers to build refineries in Nigeria within a stipulated time. When this is done, subsidy will now be paid for whatever these companies incur as cost of production in excess of the approved government pump price. This will be done in such a way that the companies enjoy some level of profit.
This will in addition to reducing drastically the cost borne by the government in subsidy, jobs will also be created with the Nigerian space for her millions of jobless youths. This will also prevent companies from ripping Nigerians off with high profit mark-ups.
This is but my less-than-a-kobo idea to the Nigerian government.
Excellent points
Submitted by Alexco (not verified) on December 6, 2011 - 20:27.
How can we have a constitutional change in Nigeria?. Will the military come back to power to initiate thes changes?. The corrupt and wicked legislators will never implemented changes that will limit the blood sucking ways they have used to ravage the poverty stricken people. Who amongst them will suggest the stoppage of security money given to governors? Who would stand up and state that the money given to him/her is too much in relation to what the average person gets on a monthly basis? Who would introduce a bill to request that the people have no obligation to build houses for them to live freely?. Who plans to stand up and demand for the stoppage of travel estacodes?.Who would demand that charged and sentenced criminals should not be in the senate or in the House?. These are the challanges.
BIANCA's NOMINATIONS
Submitted by Beejay (not verified) on December 6, 2011 - 15:16.
With due respect to Mr GEJ and his political calculations or is permutations, I don't know what is his own and all the nominations given to Bianka!! When Ojukwu was in a comma, Bianka was given an appointment;just after his death, another one. Any hand shake beyond the elbow is not a friendly one at all sir. I hope we are not watching a drama that bothers on the domestic (not damestic)???Let us all have Patience and watch out for part III.This sure looks like an unfolding drama to me!!What and who mdoes she represent??
Too much talk, Remedy and Action NEEDED.
Submitted by Truthism (not verified) on December 6, 2011 - 12:31.
Prof Okey Ndibe I have been reading your column for over a year now and believe you are a articulate writer and mean well for Nigeria. However you like most commentators on Sahara reporters are so insidious by expressing the ailment of Nigeria without giving a profound remedy to the problem. Revolution is not just taking up arms, but it is in the mind. My solution to the problem of Nigeria is fight corruption by both national & international accountability (death sentence), privatize all government amenities, (electricity, road, water, education, etc) then gradual reduction of subsidy. Government in Nigeria is non existent, its role should only be payment of contract. Finally ban the proliferation of places of worship, and make all mosque / churches pay tax. God helps only those who are good.
Enough of the lies and deception about fuel subsidy
Submitted by Anonymous (not verified) on December 6, 2011 - 11:48.
I do not care what anybody says about removal or non removal of fuel subsidy. Until some body gives me answer as to why, what with the subsidized rates Petrol is still selling at 85-90 naira per litre, kerosine is currently at 160 naira per litre.
Are these products not subsidized so that thier pump price should 65 naira? I need answer to those. Before I will decide which part of the divide i should belong. Some say remove, others say, don't. What is the sense in all these, when even now we cannot get the products on an agreed price with the so called subsidy in place.
Nigeria problem
Submitted by TY (not verified) on December 6, 2011 - 10:58.
I THINK NIGERIA PROBLEM IS EVEN BEYOND REMOVAL OF FUEL SUBSIDY,AS A MATTER OF FACT NIGERIANS HAS BEEN ROBBED BY HER RULING CLASS WITH NOTHING TO SHOW IN TERMS OF ECONOMIC D'VELOPMENT COMPARE TO OTHER OPEC COUNTRIES WHERE THERE CITIZENS ENJOY ALL NECESSARY BASIC AMENITIES LIKE GOOD ROADS,STEADY POWER SUPPLY,FREE EDUCATION IN LINE WITH UNISCO BEST PRACTICE,AFFORDABLE ACCOMMODATION FOR ALL,LOW FOOD PRICE,FREE HEALTH CARE FOR ALL,GOOD PORTABLE WATER FOR ALL,STIPENT FOR NON-WORKING CLASS.IF TRUELY NIGERIANS WILL BE STAGING A PROTEST OR REVOLUTION AGAINST THE RULING CLASS WE MUST ASK FOR ALL BENEFITS OTHER OPEC COUNTRIES GIVE THERE CITIZENS WE SHOULDN'T BE DEAD-BENT ON ONLY FUEL SUBSIDY EVERY OTHER THINGS SHOULD BE INCLUSIVE.
Fuel Subsidy Removal
Submitted by Wale (not verified) on December 6, 2011 - 09:53.
Chei! Am in trouble. Even if i dont drive a car, how would i get money to fuel my generator to conduct my barbing or hairdressing saloon? I think we speak too much grammar, lets break it down so that the average Nigerians will understand.
Subsidy removal means no more busines for hairdresers, barbers and all artisans who needs generators for business.
Why cant these guys just build refineries and fix the power problems before they start making savings.
@ Thomas-You are a Dolt
Submitted by Anonymous (not verified) on December 6, 2011 - 09:43.
@ Thomas or whatever your name is, the likes of you is the reason why Nigeria has remain the way it is. If Prof. Ndibe's efforts in his own way to sanitized Nigeria is a waste of efforts, according to you, may you never see anything good. May your generation embrace hardship. May the sufferings of most Nigerians be on your head.
VOTE FOR REMOVING REAL SUBSIDY
Submitted by Frederick Obasuyi (not verified) on December 6, 2011 - 09:32.
I am amazed by the import of the disclosure. Are we saying there is no subsidy on the price of fuel (PPMS) in Nigeria! A litre of petrol in Nigeria is N65/litre as against N165/litre in Ghana. The subsidy of N100/litre is paid by Government to licensed importers of petrol. These importers grant government credit to cover the subsidy which are usually paid in arrears of up to six months. Unless they are inflating the TONNAGE of imported petrol and if this is the position the importers can be prosecuted for the crime. The tonnage or amount imported can easily be verified from the Bill of Lading.
The difference between the price of petrol in Nigeria and neighbouring countries is so high that even Angels would smuggled petrol by ships! All Nigerians of goodwill should support the President to remove Petroleum Subsidy so that the country does not go bankrupt like Greece.
I am amazed by the import of
Submitted by Frederick Obasuyi (not verified) on December 6, 2011 - 09:29.
I am amazed by the import of the disclosure. Are we saying there is no subsidy on the price of fuel (PPMS) in Nigeria! A litre of petrol in Nigeria is N65/litre as against N165/litre in Ghana. The subsidy of N100/litre is paid by Government to licensed importers of petrol. These importers grant government credit to cover the subsidy which are usually paid in arrears of up to six months. Unless they are inflating the TONNAGE of imported petrol and if this is the position the importers can be prosecuted for the crime. The tonnage or amount imported can easily be verified from the Bill of Lading.
The difference between the price of petrol in Nigeria and neighbouring countries is so high that even Angels would smuggled petrol by ships! All Nigerians of goodwill should support the President to remove Petroleum Subsidy so that the country does not go bankrupt like Greece.
Nigerians, Fat cats, the battle line is drawn. Get ready!
Submitted by FiReClOuD OfGoD (not verified) on December 6, 2011 - 07:58.
Nigerians, Fat cats, the battle line will soon be drawn. Get ready!
What a tragedy that a few fat cats for 50 years reduced Nigeria to our present state where over 70 million Nigerians survive on $1 a day.
Nigerians fought apartheid in the past. How is our present situation different from the way the whites treated the blacks back then?
I shudder to think of the consequences and waste of human life that will occur if Goodluck does not pull back from the precipice, by pushing ahead with this dangerous route of fuel subsidy removal.
"About N400 million has been spent from October to date on advert placements in national newspapers and broadcast stations as well as in international cable television stations supporting the Federal Government’s plan of ending..."
http://dailytrust.com.ng/index.php?option=com_content&view=article&id=14...
What a senseless waste!
Totally agree with you.
Submitted by Yusuff Rasheed (not verified) on December 6, 2011 - 07:18.
Totally agree with you.
Fuel Subsidy?
Submitted by Abiodun (not verified) on December 6, 2011 - 07:02.
Prof. well done. But pray, where or what is fuel subsidy? It was removed several times by Babangida. Abacha removed it and appointed an eminent person to manage it for infrastructural development. Suddenly, Obasanjo told us that fuel subsidy has developed or surffaced again, out of nowhere!! In the last 28 years, only Yar Adua did not remove fuel subsidy, yet it keeps recurring!!
Nigeria had better be put on notice that this is not going to be the last fuel subsidy remover. As long as politicians keep converting their stolen Naira to dollars and the Naira keeps falling in value, so shall fuel subsidy continues to resurface after each remover.
Who are the PDP Presidential
Submitted by Anonymous (not verified) on December 6, 2011 - 06:00.
Who are the PDP Presidential Campiagn DONORS?
Prof. Okey Ndibe & Subsidy
Submitted by Onyenduzi (not verified) on December 6, 2011 - 04:46.
1. Prof., people get the government they deserve and fight for
2. The argument should be about how to fight institutionalized corruption. But the government does not have the capacity or the capability to do so.
3. I totally agree that the effort should be to stop subsidizing the debilitating corruption and mindless profligacy of govt.(Prof., I think we need a different word to describe the specie of corruption we have here.)
4. I think you should stop talking to the deaf!
