In my previous post,I made it clear what was meant by fuel subsidy - it's the money paid by the government to reduce the cost price of fuel for the general public.I also made a good run down on the history of fuel subsidy in Nigeria.Today,I shall continue from where I stopped which is discussing the way out.
Remove the Subsidy!
I'll explain.Let me start by asking you this very simple and logical question.If you are married and had settled your family in a place like Oshogbo while you work in Lagos.There's this expensive imported drug that you usually send to your wife for her ailing mother in Oshogbo. The highest amount of cash your wife can afford is N5000 but there in Lagos it goes for N7500.So,you decided to help by paying N3500 of the price so that your wife would only worry of paying just N4000. But,in the end,you discovered that your wife still pay through the nose as much as N7500 after she might have paid for transportation that you already have taken care of.Now,tell me,what would you do,would still continue to pay for the drugs??? Of course not!
We have been told from reports that subsidy payments are not making the desired effect on the fuel prices we pay,why,then,should the government continue to make such payments?Look,let's be realistic and face the facts.Can we say we have really enjoyed the dividends of being an oil producing country before,weren't we better off when we depended on Agriculture as a major source of national income...CAN ANYONE OF US TRULY SAY THAT HE OR SHE HAD ONCE FELT THE POSITIVE EFFECT OF FUEL SUBSIDY???
Is There Truly a Subsidy to be Removed?
If you carefully study the data presented as regards to subsidy removal from 1978 till date,you'll discover that they only tell you that they are removing fuel subsidy and are quiet as to when the subsidy was added in the first place.I mean,if the subsidy was removed in 1978,when was it re-added to warrant its removal again in 1990?
Okay,let's assume there were so many turbulent years between '78 and '90,but what of between '90 and '92,92 and '93 which were under the same regime,when was it re-added to warrant its removal again...how much exactly was paid as subsidy? The most laughable part is the occurrence in 2000 when subsidy was removed thrice!When was fuel subsidy added and by who before it was removed again?
In case you haven't noticed,the first subsidy removal was during Obasanjo's Military regime,the second,third and fourth were during the Babangida's era before Obasanjo came back in '99 to continue the upward movement of oil prices which was briefly halted and actually reversed backwards by Late Yaradua.Jonathan came to power to play the same old card of his predecessors,Obasanjo and Babangida but was faced by a stern resistance from Nigerians who are now more co-ordinated than ever...thanks to social media!His hands were forced to leave prices at N97/litre.
Now,in all these,there's none have I found much more thought provoking than the fact that despite all the sanctions and difficulties Nigeria faced under General Sanni Abacha,the fuel price was stagnated at N11 per litre!
Before Abacha's regime,I don't think we imported fuel at all,yet,there were subsidy removals but during his tenure when we had started importing fuel,there was no subsidy removal or hike in fuel prices...this is why I ask,is subsidy removal not a fraudulent way of embezzling public funds...WAS THERE ANY SUBSIDY IN THE FIRST PLACE???
Dealing With The Independent Marketers
Thank God,there are no more talks of Oil Cabals,what we got left are the subsidy and independent marketers' talks.
As you can rightly observe,at least in Ilorin where I live,there's scarcity of fuel and an emerging black market force.These are the consequences we have to face following the refusal of independent marketers to lift fuel for public consumption.In Ilorin,it's only the major marketers and the NNPC that sell fuel at the control price as expected.Independent marketers are not selling at all.However,I learnt that in places like Oshobgo and Ogbomosho,fuel are sold in filling stations but not at the control prices.The prices of petrol in those filling stations ranges from N100 - N150.
Now,let me say for the sake of emphasis,all these were happening despite the subsidy,why not just remove the subsidy then,so that we may know those to truly hold responsible?
I mean despite the subsidy,Nigerians have to pay as much as N250 per litre and the Federal Government announces that after the fuel subsidy removal,fuel prices won't exceed N95/litre. Just check out the difference!
What this means is that we are suffering this untold hardship simply because we are afraid of paying more,are we not paying more already???
During the President Jonathan's administration,things went from bad to worse,the emergence of the so called Independent Marketers who literally became the ones that decides how much we,both as a government and public consumers pay served us a very deadly blow.They come around and demand for subsidy payments at will.In fact,rumor has it that they sometimes get paid subsidy for doing absolutely nothing...all they had to do is present documents that a NON EXISTING oil vessel had just arrived and needs the subsidy funds to make necessary payments.Others were reported to have diverted the fuel tankers to neighboring after collecting subsidy payments from Nigerian government...the corrupt practices are way too many to mention!
Whether there was truly subsidy before the present regime's emergence,the regime must be ready to work according to what's on ground!This is because I'm seriously doubting its existence in the first place!
My Take!
Gaskia!I know one thing for certain,most Nigerians are not affected positively by the subsidy payments,as in,it doesn't reflect on how much I pay for fuel.It has also been known that after the total removal of the subsidy,fuel would land on Nigerian soil at about N78/litre,after the addition of all other forms of charges,it would rally round N94. Hence,the pump price in the end would be...say N100/litre!
To me,a standard and stable price of N100/litre of UNADULTERATED supply of fuel is far,far,much better than N250/litre adulterated black market supply!Forget about the government savings,forget the numerous government's on how the savings would be used. The koko to me is that fuel would be available at a highly stabilized price of N100 and the fact that prices would only go down and not upwards...when our refineries start operating fully!
This is my take - Remove the Subsidy TOTALLY!
Remove the Subsidy!
I'll explain.Let me start by asking you this very simple and logical question.If you are married and had settled your family in a place like Oshogbo while you work in Lagos.There's this expensive imported drug that you usually send to your wife for her ailing mother in Oshogbo. The highest amount of cash your wife can afford is N5000 but there in Lagos it goes for N7500.So,you decided to help by paying N3500 of the price so that your wife would only worry of paying just N4000. But,in the end,you discovered that your wife still pay through the nose as much as N7500 after she might have paid for transportation that you already have taken care of.Now,tell me,what would you do,would still continue to pay for the drugs??? Of course not!
We have been told from reports that subsidy payments are not making the desired effect on the fuel prices we pay,why,then,should the government continue to make such payments?Look,let's be realistic and face the facts.Can we say we have really enjoyed the dividends of being an oil producing country before,weren't we better off when we depended on Agriculture as a major source of national income...CAN ANYONE OF US TRULY SAY THAT HE OR SHE HAD ONCE FELT THE POSITIVE EFFECT OF FUEL SUBSIDY???
Is There Truly a Subsidy to be Removed?
If you carefully study the data presented as regards to subsidy removal from 1978 till date,you'll discover that they only tell you that they are removing fuel subsidy and are quiet as to when the subsidy was added in the first place.I mean,if the subsidy was removed in 1978,when was it re-added to warrant its removal again in 1990?
Okay,let's assume there were so many turbulent years between '78 and '90,but what of between '90 and '92,92 and '93 which were under the same regime,when was it re-added to warrant its removal again...how much exactly was paid as subsidy? The most laughable part is the occurrence in 2000 when subsidy was removed thrice!When was fuel subsidy added and by who before it was removed again?
In case you haven't noticed,the first subsidy removal was during Obasanjo's Military regime,the second,third and fourth were during the Babangida's era before Obasanjo came back in '99 to continue the upward movement of oil prices which was briefly halted and actually reversed backwards by Late Yaradua.Jonathan came to power to play the same old card of his predecessors,Obasanjo and Babangida but was faced by a stern resistance from Nigerians who are now more co-ordinated than ever...thanks to social media!His hands were forced to leave prices at N97/litre.
Now,in all these,there's none have I found much more thought provoking than the fact that despite all the sanctions and difficulties Nigeria faced under General Sanni Abacha,the fuel price was stagnated at N11 per litre!
Before Abacha's regime,I don't think we imported fuel at all,yet,there were subsidy removals but during his tenure when we had started importing fuel,there was no subsidy removal or hike in fuel prices...this is why I ask,is subsidy removal not a fraudulent way of embezzling public funds...WAS THERE ANY SUBSIDY IN THE FIRST PLACE???
Dealing With The Independent Marketers
Thank God,there are no more talks of Oil Cabals,what we got left are the subsidy and independent marketers' talks.
As you can rightly observe,at least in Ilorin where I live,there's scarcity of fuel and an emerging black market force.These are the consequences we have to face following the refusal of independent marketers to lift fuel for public consumption.In Ilorin,it's only the major marketers and the NNPC that sell fuel at the control price as expected.Independent marketers are not selling at all.However,I learnt that in places like Oshobgo and Ogbomosho,fuel are sold in filling stations but not at the control prices.The prices of petrol in those filling stations ranges from N100 - N150.
Now,let me say for the sake of emphasis,all these were happening despite the subsidy,why not just remove the subsidy then,so that we may know those to truly hold responsible?
I mean despite the subsidy,Nigerians have to pay as much as N250 per litre and the Federal Government announces that after the fuel subsidy removal,fuel prices won't exceed N95/litre. Just check out the difference!
What this means is that we are suffering this untold hardship simply because we are afraid of paying more,are we not paying more already???
During the President Jonathan's administration,things went from bad to worse,the emergence of the so called Independent Marketers who literally became the ones that decides how much we,both as a government and public consumers pay served us a very deadly blow.They come around and demand for subsidy payments at will.In fact,rumor has it that they sometimes get paid subsidy for doing absolutely nothing...all they had to do is present documents that a NON EXISTING oil vessel had just arrived and needs the subsidy funds to make necessary payments.Others were reported to have diverted the fuel tankers to neighboring after collecting subsidy payments from Nigerian government...the corrupt practices are way too many to mention!
Whether there was truly subsidy before the present regime's emergence,the regime must be ready to work according to what's on ground!This is because I'm seriously doubting its existence in the first place!
My Take!
Gaskia!I know one thing for certain,most Nigerians are not affected positively by the subsidy payments,as in,it doesn't reflect on how much I pay for fuel.It has also been known that after the total removal of the subsidy,fuel would land on Nigerian soil at about N78/litre,after the addition of all other forms of charges,it would rally round N94. Hence,the pump price in the end would be...say N100/litre!
To me,a standard and stable price of N100/litre of UNADULTERATED supply of fuel is far,far,much better than N250/litre adulterated black market supply!Forget about the government savings,forget the numerous government's on how the savings would be used. The koko to me is that fuel would be available at a highly stabilized price of N100 and the fact that prices would only go down and not upwards...when our refineries start operating fully!
This is my take - Remove the Subsidy TOTALLY!
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