Peaceful Protesters |
Nigeria is at crossroads today, as a result of accumulated government inefficiencies, irresponsibility, insensitivity, recklessness over the years.
The government on January 1, 2012 gave Nigerians a 'lovely' new package to celebrate the new year with. You may be wondering what the hamper's name and content is. The name is 'Fuel Subsidy Removal' and contents are increased cost of petrol, increased cost of transport, food, rent, school fees, providing services, running business and when simplified is MORE SUFFERING FOR THE NIGERIAN PEOPLE.
Government's position is that it subsidies the cost of petrol for Nigerians and can not continue to save the economy from an eminent collapse should it continue subsidising fuel into 2012 which have cost government over 1.43 trillion Naira ($8 billion) in subsidy funds paid to petroleum marketers. The funds saved from the removal with be used to improve Nigeria's infrastructure, build roads, provide health care, employment for the youths....
However removal of fuel subsidy is not the solution to fixing the economy and improving our failed infrastructure. Government took the wrong turn and the people are now protesting peacefully; the only option to make government listen and revert its decision. This kind of protests is long over due considering the level of hardship that the people of Nigeria have been made to endure in the past, with government promises that never materialize.
CNN Marketplace Africa programme on the protests in which I featured
CNN Marketplace Africa programme on the protests in which I featured
The real issues:
- The government of Nigeria told Nigerians late last December that the implementation of the fuel subsidy removal will take place in April this year after consultations with all stakeholders, only to implement the policy on the 1st January. In a month that is usually very difficult economically due to spending during Christmas, New Year and other celebrations. Rent on house, business offices, school fees and other bills are paid in January. Doesn't this show insincerity, irresponsibility, insensitivity, callousness, and recklessness on the part of government?
- Budgets in Nigeria are always have more that 60% of it going to recurrent expenditure and the rest for capital projects which are never implemented up to 50%. The rest of the funds goes to the pockets of corrupt government officials. Nigeria’s 2012 have 76% going to recurrent expenditure and 24% goes to capital projects. How possible can 24% of the budget that includes the $8 billion freed up from the fuel subsidy will be enough for government to suddenly improve our collapsed infrastructure? Government is not interested in other sectors of the economy to attract investment them.
- Just last year the Government of Nigeria, through her Ministries of Youth Development, Finance, World Bank, DFID and some other development organizations sponsored a 10 billion Naira ($63 million) Youth Entrepreneurship venture capital program(YouWin) in which applicants developed and submitted business proposals. Winners will be awarded funds to start off businesses. These proposals were designed with the prevailing cost of production last year. What happens to that program now that the cost of services, transport and production has more than doubled without considering the present cost of production and providing services due to the fuel increase? The program will only fail – an increase in wastage due to lack of effective, and efficient strategy to drive the economy.
- We have 4 refineries working below capacity. Millions of US dollars ($800 million and $400 million) were budgeted twice and funds released for Turn Around Maintenance (TAM) of these refineries. The maintenance did not happen; our refineries are good as dead today. The funds were diverted by corrupt government officials. Why can’t we bring those responsible to justice and make then return the loot. Presently government approved new funds for contracting the original manufacturers of these refineries for another TAM, with a project delivery period of 18-24 months. That is if it will ever happen. Will Nigerians be made to suffer for up to 2 years before our refineries can output to its maximum capacity. New refineries are needed. Government knows the so called ‘cabal’ that is committing economic crime in the petroleum sector but lacks the will power to stop their activities and prosecute them. Nigeria does not consume petroleum that amounts to over $8 billion in subsidy as the figures show when the economy is not performing. The criminals in the petroleum sector cook the figures and are paid by the same government departments that should prevent such from happening. We should not be importing refined petroleum when we are the 6th largest OPEC exporter.
- It is on record that billions of dollars was budgeted and released to maintain, construct new high ways but that didn't happen. The funds were looted by persons that are well known to government and are still in government. Bring them to book, return the looted funds and use it for the purpose it was originally meant for. I urge you and your team to see what our high look like today. Billions have also been approved for a improved rail system in the country but nothing equivalent to the funds approve was done.
- Same with the Power sector, many National Independent Power Programs failed to deliver on its mandate after those in charge with its affairs looted the treasury. They are in power today as governors, senators, ministers. Prosecute them and use the recovered funds to develop Nigeria.
- Same with education. Today Nigerians spend a total of more than $62 Million to send their wards to universities in Ghana alone, that of USA, UK, the rest of Europe and Asia not included. Billions equalled approved for these sectors without prove on ground for it. How long are we to continue like this?
- Same story goods for our agriculture, we spend billions of US dollars on food imports yearly. Funds provided for fertilizer and farm inputs are never utilized, but diverted by people known to government. Malaysia that now prides with the export of Palm Oil got its palm nuts from Nigeria some decades ago when Nigeria was the major exporter in the world. Hear this, the government of Nigeria constituted a committee to travel to Malaysia last 2 years to understudy the Malaysian system of producing palm oil and replicate same in Nigeria. That has never happened. That is where we are today.
The list is endless.
What Nigerians demands is that the removal of fuel subsidy, as it will kill Nigerians that the government thinks it wants to save the economy for, because the policy is very untimely, not well thought through, no social safety nets, and palliatives. For a case study, an average worker in Nigeria gets a monthly minimum wage of #18,000.00 Naira ($112). Let’s now do some mathematics.
Average cost of transport per day - #600 x 21 working days = #12,600 ($78.2)
After paying for transportation, #5,400 ($33.5) is now left to pay for housing, food, health care, utility bills, schools fees and more. Remember that the cost of all these has now more than doubled. The policy has only impoverished Nigerians the more without any assurance that our infrastructure, education, power, health care system will be improved, since government has refused to change from its past ways of governance – wastage, greed, corruption, inefficiency, ineptitude, lack of vision, strategy and will power to rule or lead Nigeria.