The Forum of Commissioners of Finance of the 36 States of the Federation passed a resolution in Abuja for the removal of fuel subsidy which they have channeled to the Governors Forum for onward transmission to President Goodluck Ebele Jonathan.
The Forum of Commissioners of Finance of the 36 States of the Federation passed a resolution in Abuja for the removal of fuel subsidy which they have channeled to the Governors Forum for onward transmission to President Goodluck Ebele Jonathan.
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The reasons for their resolution are basically three:
1). "...the people who benefit (from subsidy) more are those from the states that are industrialized. It is a system that robs Peter to pay Paul by making the rich to grow richer and the poor to grow poorer....So what we are advocating is that the subsidy be removed so that very state or any member of the federating unit from FAAC will take his own money, then decide to use it or grant subsidy in a level that it will be able to afford...
2). "...if the issue is not urgently addressed, it will get to a point where the states will have nothing to share from the Federation Allocation Account as their allocations would be wiped out by subsidy claims...
3). "If you also look at the oil marketers, they are also not showing the intention of the federal government as it has created a very big market for them in certain ways because transparency is not coming up...there are some people who are eating on the subsidy to the disadvantage of others. It is because of that that we passed a resolution at the Federal Account Allocation Committee because many states are crumbling as subsidy payment has eaten so much into the crude reserves."
The Chairman of FAAC, Mr Timothy Odaah from Ebonyi State who spoke for the group, drew blood when he stated that but for the fuel protest of January 2012, (led by the Nigeria Labour Congress, arguably, the most popular protest in Nigeria's recent history), most states would have experienced significant development by now. He certainly rubbed salt on injury when he declared with finality that, "...in the first place, NLC and the majority of Nigerians appear to have been deceived into clamouring for subsidy".
Within the same period, the International Monetary Fund (IMF) issued a report which noted inter alia:
"Efforts should be geared towards boosting non-oil revenue by broadening the tax base, improve tax administration and curtailing exemptions , and further REDUCE OIL SUBSIDIES".
The Congress is dismayed by the position of FAAC as the reasons adduced by them for the removal of subsidy, if any at all, are empty, self-serving and contradictory.
The reasons lay bare the greed, laziness, bankruptcy of ideas and truancy of the states. Rather than devise strategies to help build internally-generated revenues, diversify the economy or even help build fiscal buffers by way of enacting legislations (to complement federal government's) such as fiscal responsibility act or procurement act, the states are only concerned with collecting and sharing to the eternal glory of their governors ( and their collaborators) who have gone on a borrowing binge as if there is no tomorrow!
It is certainly disgusting to hear Mr Timothy Odaah say that but for the protest of 2012, the states would have experienced significant development by now. The Congress would like to know what the states did with the proceeds of previous increases.
It is the same Odaah who argues a breath later that there are huge scams by marketers which the 2012 protest helped in exposing in no small way. So with what would he have used to develop Ebonyi State if those scams had not been exposed by the combined action of the Congress, it's civil society allies and patriotic Nigerians?
It is equally amazing that having identified the culprits milking the nation dry, instead of calling for their prosecution, Mr Odaah would have innocent Nigerians bear further burden of their criminalities. Only a callous and insensately cruel soul could call for the impaling of the innocent in place of the guilty? But why would any reasonable person behave like Odaah?
Power or the contemplation of it. On second thought, one can understand the contempt and the implacable arrogance of Mr Odaah. The government picks his bills at the moment. However, borrowing from the immortal words of Chinua Achebe, he should note that those who have had their palm kernel broken for them by benevolent spirit should not forget to be humble.
As world's 13th largest producer of crude oil, Nigeria has no reason to have shortages of petroleum products but for nauseating corruption , mismanaging of our refineries and economy, massive theft of crude oil by the high and the mighty.
NNPC, the gold mine for illicit deals, receives a daily allocation of 445, 000 barrels of crude oil it does not account for. In 2012, the country took a loan of USD1.61 billion for turn-around maintenance of our refineries which today remain in a state worse than before the loan was taken!
In 2011 alone, an election year, in further celebration of corruption, the number of petroleum products importers jumped from 49 to 140 incurring N1.7 trillion on petroleum subsidy when only N248 billion was appropriated for this purpose by the National Assembly.
Crude oil theft accounts for about 30 per cent of total production leading to divestment by not a few oil majors in the Delta.
It is intriguing that years after licenses were given, no private refinery has come on stream. Yet in the spirit of competitive enterprise, our position has always been that a level-playing field should be created for state-owned refineries and privately-owned ones to thrive.
In the light of this haunting truth, the Nigeria Labour Congress will strongly advise against the further removal of subsidy, if any. Rather than inflict further punishment on innocent Nigerians whose only share of this huge national patrimony, is access to affordable fuel products, government should go after the state enemies who are plundering the economy. Government knows them and knows the right thing to do.
Congress further wishes to advise that any attempt to increase the price of petroleum products by what ever means will be resisted by the Nigeria Labour Congress, it's civil society allies and patriotic Nigerians. No one should test the will and resolve of the Nigerian people. Congress assures that the protest of January 2012 will be a child's play compared to what is coming.
President Jonathan has more than enough challenges at the moment. Only his enemies will mislead him into taking such an irrational decision. Neither the reason nor the time is auspicious! Rather than indulging in this game of deception, Government and Marketers should put an end to this unholy alliance and make available right away interrupted supply of petroleum products across the country.
And in the event Mr President yields to the combined pressure of IMF and FAAC, he needs no diviner to know that he alone will be left to carry the can!
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