“‘Nigerians are being deceived on the issue of fuel subsidy, The federal government takes out fuel for refining, only to come back and talk about removing the subsidy. That is nonsense and an attempt by a clique with the PDP led the federal government to siphon the proceeds to be realized from the removal of oil subsidy”.
General Buhari’s statement in 2012
Before buttress my argument on cash handouts to the poor, that may cost the government 2.4 trillion naira a year ($5.8 billion) in a bid to replace fuel subsides more than what government subsidise in petroleum products.
Let set the record straight, there is no any administrations in the history of the country that carry out several welfarist policies like President Muhammadu Buhari’s administration aimed at alleviating pains include; the Conditional Cash Transfer in the market; the N-Power scheme that pays N30,000 stipend to youths to enhance their skills; financial bailout to all states governments in the federation, Hundred billions to anchor brower and Covid 19 financial support to households.
Recently National Economic Council (NEC) said President Buhari has approved a fresh N656 billion Bridge Financing Facility for the 36 States as
each state will receive N18.2 billion. The Minister of Finance, Budget and National Planning said the support was to help state governments to meet their financial obligations, especially the previous budget support facility due for repayment.
However, the lists of current administration support programs are many all aimed at alleviating pains to the strata of the society at same times to create social safety nets for the impoverished and vulnerable peoples of the society but the programs did not make much in fact to target beneficiaries. Even with subsidies regime in the oil sector but getting on with daily lives is pretty difficult vulnerable peoples, considering, skyrocketing prices of good and services in addition with alarming unemployment, inclement economic conditions.
I don’t think, there is any logic for the administration to spend more than what the subsidy wouldn’t have cost the country. Nigerians argue that the supposed benefit would amount to a colossal loss as the expenditure would be higher than the 2021 subsidy expenses and is like sell dogs to buy monkeys.
Nigerians recall, in 2012, President, Goodluck’s administration attempted to removed fuel subsidy which had hit bricks as Nigerians and members of then opposition now the ruling party, opposed the decision, accusing the then PDP adminstration of planning to siphon the proceeds realized. PMB makes Nigerians to believed that oil subsidy regime is one of the most corrupt system in the country and also most confuse policy in the mind of Nigerians.
In May, 2016, then State Minister for Petroleum Resources, Dr. Ibe Kachikwu had announced the removal of subsidy on petrol, fixing the new pump price at N145 per litre from N86.50k and later to N165. Exactly one year after the coming of the administration to power. Going by the state minister admission the subsidy has been removed with it’s current pump price at N165.
As the progressive administration pleaded that it would free Nigeria from being forced to subsidise a lavish lifestyle of elites Nigerians at the expense of ordinary but the administration has continue doing exactly what it opposed paying surprisingly, the administration continued subsidy payments
Even when it was announced that it had withdrawn the policy in May 2016 but since then, it has been confusion galore, as the Federal Government keeps paying huge subsidies after several announcements of “full deregulation. In spite with announcement of fuel subsidies removal Nigerians remind confused who subsidy who as the GMB than making poor Nigerian to believe there is nothing like subsidy and the regime in it totality but a SCAM.
How can 5,000 naira each will alleviate hardship to poor considering the prices of foodstuffs are increase daily without control. Even those opportune one (workers) things are very pretty tough considering the meagre nature of the minimum wage talks less of millions peoples out work.
To buttress my argument there is need for the administration to think wisely not to introduce new new subsidy regime in disguise. In spite oil subsidies regime remains unsustainable and economically disingenuous. Did the administration wants to scrap fuel subsidies because the nation’s budget can no longer contain the financial burden. Why the administration policy shuffle always one step forward, and backward.
I am averse to this cash transfer of five thousand because is not a solutions. How this Cash support programs can reach intending target beneficiaries in a nation where millions don’t have bank accounts. Did the administration realise there is a stack difference between the number of account holders and the active accounts in Nigeria. Let the administration apply more sustainable long running scheme that could touch lives beyond. How the administration will ensure the process will be transparent like those Cash support programs from Togo to India which have helped these countries poor.
One of the easiest ways to alleviating pains to the strata of the society is to have a empathy to the citizens suffering as a matter of urgency, Nigeria government should revisit the policy of reducing the importation of food, especially now. There is no prescription that every nation has to meet its food self sufficiency needs from domestic production. If the administration give a corridor for food importation the anticipations miserable will be control.
Lastly for those close to the corridor of power always don’t want to hear that the perceive messiah is yet to figure out on how to improve the citizens well being, strengthening the economic policies that will allow foreign investors to come not an policies that would make investors moving out to neighbouring countries due to policies uncertainty.
With untold hardships in the country it become clear that the progressive change is not forthcoming to the expectations of Nigerians. Instead of progressive transformation the daily survival has become an uphill challenges as the peoples are languishing in extreme hardship.
Is the administration fantastically confused since it is now executing it own new policy of cash out the same subsidies regime executed by successors administration ideas which current administration had publicly opposed?
Ahmad wrote in from Kano
