TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

Let the subsidy be – The Nation

The Citizen by The Citizen
March 24 2014
in Public Affairs, Uncategorized
A A
0
22
SHARES
734
VIEWS
Share on FacebookShare on Twitter

•Nigerians should not carry the burden of govt’s inability to tame corruption in the downstream sector

Why would the Federal Government – after inflicting the latest round of crippling fuel scarcity – turn round to exploit it to ramp up its jaded idea of removal of subsidy on petrol and kerosene?

It seems an inevitable part of the strange ways of the government and the Nigerian National Petroleum Corporation (NNPC) that the drumbeats for the removal of subsidy hit high octane levels in the last one week or so. After confessing to their complicity in the making of the latest round of fuel scarcity that paralysed economic activities across the country, perhaps only the insensitive duo would dare to broach the idea of removing the subsidy at this time.

But then, it is not only the Federal Government that wants the subsidy removed. If reports are anything to go by, the body of states’ finance commissioners in the 36 states has since enlisted in the remove-the-subsidy orchestra. The position of the latter would seem understandable – most of them have fallen on hard times in the last one year, courtesy of the shrinking accruals into the federation account, hence their need for additional sources of finance – earned or unearned – to bridge financing gaps in their budgets. So, where else to look if not in the direction of the subsidy, with its seduction to revenue without sweat?

The truth of the matter is that the nation is no less hung on the old debate on the fuel subsidy now as it was some 10 years ago. Clearly, to the extent that the views credited to the Minister of Petroleum Resources, Diezani Alison-Madueke at the Oil and Gas Conference in Abuja last week represents the latest thinking at the highest levels of government, nothing appears to have changed. It was the same old arguments about the hefty subsidy payout (on imported Premium Motor Spirit and Kerosene) to fuel marketers being unsustainable; the usual argument about the deregulation of the downstream sector of the petroleum industry being overdue; the current regime of petroleum pricing not just unsustainable but discourages investment and benefits the rich and not the masses in the society for which the policies were intended.

Now, they are so wearisome.

In vain did this newspaper struggle to detect any shift in the position of government – on a subject on which the government and the governed have been in diametric opposition all these years. It is as tragic as it is unfortunate.

Now, to start with, the very idea that the Federal Government has the monopoly of knowledge – or that it could do no wrong – is not only absurd but baseless. However, in this case, conceit appears not to be the only affliction suffered by the government; as far as the issue of the subsidy goes, the government has opted to be so blind in its fixation with an outmoded paradigm – to the extent that it now elevates the debate on the subsidy above everything else.

What do we know about the subsidy arithmetic or economics? Given the revelations at the various subsidy probes, it would appear that not even the government is in a position to deny that a huge chunk of the figures bandied around for the purpose of claims payment do not even qualify. Unfortunately, rather than concentrate on measures to reduce graft in the fuel supply and distribution chain, the government would seem content to punish its innocent victims – the fuel consumer.

Contrary to what the Federal Government prefers to think of Nigerians’ attitude to the subsidy issue, Nigerians are neither dumb nor stupid as to believe that the annual payout to the merchant club of marketers is sustainable either now or in the long run. In the 2014 budget for instance, N971 billion was voted for the subsidy. Perhaps more than the government would care to admit, the citizens appreciate the massive distortions foisted by the subsidy regime, the vicious spiral of negative macro-economic waves indicated in the annual outflow of the foreign exchange on the importation reckoned in billions of dollars and exchange rate pressures, and, not least, the dangers that these pose to the economy in the long run.

But they also understand these to be the direct effects of the current regime of importation.

It seems that the main issue is government’s narrow interpretation of what the policy of deregulation should be. For sure, citizens have nothing to choose in the current laisez faire, all-comers policy of unbridled importation, or its twin, the hollow, incoherent policy of abdication conveniently encased in some jaded policy mumbo-jumbo. Citizens surely know enough to recognise deliberate, guided policy to usher in multiple players in the refining sub sector when they see one.

And if we may well add, this is where the difference between the throng opposed to subsidy removal and the government comes in bold relief: the former see the subsidy as a symptom of a troubling malaise – if you like, an opportunity cost for the road not taken; for the latter it is a terminal disease that citizens must put up with – a folly of tragic proportions that must be shunned.

To allow government to have its way on the subsidy is to expose the economy to the risk of macro-economic instability of hyper inflation. Moreover, in a nation where the cost of doing business is humongous, and where no forms of social protection exist for the poor, it seems the surest path to further constriction of business and impoverishment of Nigerians.

This is where, unlike the Federal Government, we find no pleasure in framing the debate in terms of the option of either retaining the subsidy with its dire implications for the national treasury, or shifting the burden from the treasury to the motorist. To the extent that both do not come close to being palliatives in the context of the aspirations of OPEC’s sixth largest producer of crude, we consider them to be at best, false choices. At this time, the question we ought to be asking the Federal Government is how further we have to wait before the three promised Greenfield refineries come on stream. What about the billions poured into the Turn Around Maintenance (TAM) of the four refineries – including those from SURE-P; shouldn’t the funds have put them to work?

In the meantime, the government should let the subsidy be.

Share9Tweet6
Previous Post

Alleged N10 billion flight bill: NLC backs Reps’ probe of Allison-Madueke

Next Post

Oil spill: Shell denies pending liability in Nembe community

Related Posts

End female genital mutilation – Punch
Public Affairs

End female genital mutilation – Punch

October 17 2025
Nnaji: Nigeria’s dodgy vetting processes – Punch
Public Affairs

Nnaji: Nigeria’s dodgy vetting processes – Punch

October 16 2025
Vacations and governance: Why President Tinubu’s trip matters -Guardian
Public Affairs

Tinubu, honour promise to ASUU – Punch

October 15 2025
The killings in the South East – Thisday
Public Affairs

The killings in the South East – Thisday

October 14 2025
IOCs: Implement host communities’ projects – Punch
Public Affairs

IOCs: Implement host communities’ projects – Punch

October 13 2025
Don’t arm FRSC – Punch
Public Affairs

Don’t arm FRSC – Punch

October 10 2025
Next Post

Oil spill: Shell denies pending liability in Nembe community

Avoiding pitfalls in NIPPs sale - Punch

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

ALGON orders Edo council officials to wear Tinubu’s signature caps

ALGON orders Edo council officials to wear Tinubu’s signature caps

by The Editor
October 18 2025
0

...

Olubadan unveils legal committee to tackle land grabbing

Olubadan unveils legal committee to tackle land grabbing

by The Editor
October 15 2025
0

...

Birnin Gwari needs urgent federal intervention – Emir tells Tinubu

Birnin Gwari needs urgent federal intervention – Emir tells Tinubu

by The Editor
October 13 2025
0

...

Rivers court adjourns hearing on LG poll legitimacy

Rivers court adjourns hearing on LG poll legitimacy

by The Editor
September 16 2025
0

...

APPOINTMENTS

Tinubu seeks Omidiran, 28 others’ confirmation as FCC members

Tinubu seeks Omidiran, 28 others’ confirmation as FCC members

by The Editor
October 15 2025
0

...

Okpebholo swears in 19 commissioners, warns against corruption

Okpebholo swears in 19 commissioners, warns against corruption

by The Editor
October 15 2025
0

...

Fubara drops Danagogo, appoints Anabraba as Rivers SSG

Fubara drops Danagogo, appoints Anabraba as Rivers SSG

by The Editor
October 13 2025
0

...

Savannah Energy signs agreement with Chadian govt for new renewable energy projects

Savannah Energy announces board changes, appoints two Nigerians as Independent Non-Executive Directors

by The Editor
October 9 2025
0

...

ODDITIES

Lagos to probe school over alleged sodomy

Father impregnates 15-year-old daughter in Ondo

by The Editor
October 17 2025
0

Court orders exhumation, autopsy of Afriland Towers fire victims

Court orders exhumation, autopsy of Afriland Towers fire victims

by The Editor
October 15 2025
0

Slain husband’s dad forgives Maryam Sanda, backs Tinubu’s pardon

Slain husband’s dad forgives Maryam Sanda, backs Tinubu’s pardon

by The Editor
October 14 2025
0

GLOBAL NEWS

Madagascar’s military leader swears in as president

Madagascar’s military leader swears in as president

by The Editor
October 18 2025
0

...

Trump, Putin to meet in Budapest over Ukraine war

Trump, Putin to meet in Budapest over Ukraine war

by The Editor
October 17 2025
0

...

2026 Hajj: Saudi govt approves 66,910 slots for Nigeria

2026 Hajj: Saudi govt approves 66,910 slots for Nigeria

by The Editor
October 17 2025
0

...

Trump persuades India to stop buying Russian oil

Trump persuades India to stop buying Russian oil

by The Editor
October 16 2025
0

...

Former Kenyan Prime Minister Raila Odinga dies in India

Former Kenyan Prime Minister Raila Odinga dies in India

by The Editor
October 15 2025
0

...

State of the States

21.8% North-East residents HIV positive – NBS …as 16,000 die from HIV complications in Borno

Adamawa records 8,850 new HIV infections in four years

by The Editor
October 17 2025
0

...

Zamfara APC condemns state govt’s mass sacking of civil servants

Zamfara APC condemns state govt’s mass sacking of civil servants

by The Editor
October 14 2025
0

...

Gov. Otti set to build modern fire station in Umuahia

Gov. Otti set to build modern fire station in Umuahia

by The Editor
October 7 2025
0

...

Senator denies bill to rename Kaduna to Zazzau State

Kaduna State pays ₦72,000 minimum wage

by The Editor
September 18 2025
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Imo police boss to probe officers in viral video with cult insignia

Imo police boss to probe officers in viral video with cult insignia

October 18 2025
DHQ denies alleged coup attempt to topple fed govt

DHQ denies alleged coup attempt to topple fed govt

October 18 2025
FG drives grassroot mobilisation campaign for PVC collection

FG drives grassroot mobilisation campaign for PVC collection

October 18 2025
Nigeria: IMF insists on fuel subsidy removal

Nigeria missing as IMF lists Africa’s fastest-growing economies

October 18 2025

EDITORIAL REVIEW

End female genital mutilation – Punch

End female genital mutilation – Punch

by The Editor
October 17 2025
0

Nnaji: Nigeria’s dodgy vetting processes – Punch

Nnaji: Nigeria’s dodgy vetting processes – Punch

by The Editor
October 16 2025
0

Vacations and governance: Why President Tinubu’s trip matters -Guardian

Tinubu, honour promise to ASUU – Punch

by The Editor
October 15 2025
0

The killings in the South East – Thisday

The killings in the South East – Thisday

by The Editor
October 14 2025
0

IOCs: Implement host communities’ projects – Punch

IOCs: Implement host communities’ projects – Punch

by The Editor
October 13 2025
0

Opinion

Tinubu finds his own demons

Next time, Umahi should go to NTA

by The Editor
October 16 2025
0

...

Objections over presidential pardon for grave offenders

Objections over presidential pardon for grave offenders

by The Editor
October 13 2025
0

...

1975 public service purge: What have we learnt?

1975 public service purge: What have we learnt?

by The Editor
September 30 2025
0

...

Tinubu finds his own demons

Nigeria’s state of weakness

by The Editor
September 18 2025
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2024 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2024 TheCitizen Ng. All Rights Reserved.