Subsidy Removal: Fueling The Hardship In Nigeria

The removal of fuel subsidy by President Bola Ahmed Tinubu led administration, which hiked the pump price to #600 (six hundred naira) per litre, depending on the location, while in some cases, more than, has been described as an unwelcomed development by Nigerians. The Federal Government believed that the removal of fuel subsidy would better the lots of Nigerians who have for long anticipated a pleasant tomorrow.

APC government anchored on removing subsidy in search of recovery of the lost economy. The immediate past government under Gen. Muhammadu Buhari had wanted to do exactly what his successor did. During Buhari’s tenure, there was news that by February 2022 a litre of fuel would be sold for 302 naira.

This APC under Buhari, considered establishing 3 modular refineries per oil-producing state, even with that, among other stipulated benefits, Nigerians still perceive more hardship with the removal of petroleum subsidy.

The former Military Head of State, General Abdulsalami Abubakar, warned the federal government of the dangers of such removal believing that it will push more Nigerians into poverty.

The former Military Head of State, General Abdulsalami Abubakar

Today, Asiwaju and his party’s policies have made life very difficult as Nigerians see such policy as anti.

This very development brought about the nationwide peaceful protest conducted by the leadership of NLC and TUC on August 2, 2023, targeted at registering their grievances over the unacceptable petroleum pump price.

The President, who the citizenry felt is deceptive and incompetent, had removed subsidy without comprehensive plans to cushion the negative effects on the people.

The truth is that subsidy, is okay, when there are plans on the ground. It is not what you do hastily. In fairness to conscience, President Ahmed Tinubu did not do the wrong thing by his policy. We are only looking at the sincerity of the intent, going by his pedigree.

Most Nigerians have doubts about the person of the president. The JAGABAN, you may mean well for your people but your claimed savings from the subsidy removal also triggers more doubts in the minds of the citizenry who question your entry into the Presidential Villa.

Some years back, president Tinubu in a campaign rally against former President Ebele Goodluck Jonathan said under APC, Nigerians will be swimming in petroleum. Funny as it was then, the products were affordable and life was bearable. The opposing APC then described the PDP and Jonathan’s policies as anti-people as well attributed the nation’s economic meltdown to maladministration.

Today people see Asiwaju as someone who plays politics of deceit because he failed to acknowledge that the then government tried to the best of their ability which may not be enough to have taken Nigeria to a greater height. Some others see the father of the Nigerian Nation as one who is unprepared and has an “it must be me”, mindset.

The Nation is sufficiently blessed with crude oil deposits and other minerals. But unfortunately, we are the worse hit. This situation emanates from the fact that we have incomplete leadership and bad governance. According to former Vice President, Atiku Abubakar, we need a leader capable of solving our problems. Even, Atiku that said, their government could not provide solution to our problems.

In 2009, under President Umaru Musa Yar’ Adua and Goodluck Jonathan, there was fuel crisis. The difference was visible because, there where malfunctioning refineries, and dilapidated/rusted pipelines which were considered as near total collapse.

Late Former President Umaru Musa Yar’ Adua and Goodluck Jonathan

These weak refineries and poor pipeline supply network were there when the administration resorted to subsidy removal on November 1, 2009.

What the NLC and TUC are agitating for, is not alien to Nigerians and Federal government. Intimidation should not be used to scare them off their rights. We are in a Democratic dispensation which grants us the right to be heard.

Even at that time, in 2009, the policy (subsidy removal) drew the ire of Labour and the Civil society. November 1, could end up being a watershed in the history of the Nation just because the federal government had planned to remove fuel subsidy. It means the downstream oil sector would have been fully deregulated, finally shutting the window of oil subsidy.

Nigerians believed that subsidy removal policy would have ended up having a self-inflicted hardship on many of the citizenry just as we are seeing now. These are People who have been pauperised by greedy leaders with little or no interest in the well-being of the led.

As seen in the past, any increase in price of premium motor spirit (petrol), kerosene and gas has a way of upsetting the economy and increasing the cost of living of Nigerians. This is because, many Nigerians use kerosene and gas to cook while petrol is the main source of using vehicles, and power generating sets, among others.

Increase in fuel leads to high cost of transportation fare which could have a spiral effect on the whole economy. The truth is that, once the transportation is high in Price, food, raw materials and factory products will all go up because they are transported.

Nigerians are worried that their situation might be worsened by the removal of subsidy by the federal government under Tinubu who speedily implemented the policy without considering the effects on the people. Under this development, many people will find it difficult to provide for their families.

The action of the labour forces is not out of place. Situation like this is why we have Labour Union, Civil Society Group, who now act on behalf of the citizens who can not take their cases on individual basis.

In that same 2009, October 29th, I believed that Ahmed Tinubu might have been happy hearing that a mass protest was conducted in Abuja, the Nation’s Capital against the government of the time over fuel related crisis.

In retrospect, hear comrade Tokumbo Korodo, Zonal secretary, Nigerian Union of Petroleum and Natural Gas Workers, (NUPENG): “The government should not underestimate us. We have engaged many military governments, we brought this present democracy. So we will do everything to make sure that the government does not pauperise the masses”.

In his contribution, John Odah, the General Secretary of the Nigeria Labour Congress, NLC, also warned government to expect the fiercest labour unrest ever witnessed in the history of Nigeria.
“The NLC wishes to reassure workers and Nigerians that it remains as ever before, Strongly opposed to deregulation. The NLC, therefore calls on its affiliates and masses to remain resolute in their opposition to deregulation and prepare themselves for a fierce battle if and when the Federal government makes real its plan to inflict more woes on already distressed Nigerians come November 1, 2009”, Odah said to Labour Union.

Just as it is now, as labour geared up for its fierce battle, government seemed convinced that deregulation then, would do Nigerians a lot of good; perhaps even more good than Nigerians think. It is believed that deregulation would lead to efficiency, elimination of scarcity of petroleum products and removing the menace of cross-border smuggling of products.

Government is of the view that deregulation would attract the needed investment into the downstream sector, refineries. It also reasons that the money spent on subsidy could be channelled into something more profitable.

Let the necessary things be put in place. Government should make the refineries functional and also show sincerity in the management and accountability of the subsidy money. Nigerians need a leadership that will make the country work again.

By Dickson Paul