The
thrust of this article is to identify and discuss the 5 pertinent issues that government
failed or handled poorly and how and how it negatively impacted the fuel
subsidy issue. These key issues are germane to the ongoing nationwide strike
action.
1.
Cost of fuel subsidy. The Executive
Director, PPPRA, Reginald Stanley, told the Senate Committee that the gross
amount spent on fuel subsidy from 2006 to September this year stood at
N3.655trillion. The figure contradicted the N1.426 trillion submitted by the
NNPC as subsidy on the products as at August 2011. Government dented its own
credibility badly from this incident as it cannot accurately tell the amount of
subsidy paid so far. This incongruence is what made many to believe that the
whole process itself is a sham. How do you explain, contradicting figures with
such gaping variance from 2 government agencies. The NNPC tried through
advertorial to justify and reconcile this figure unsuccessfully.
2.
Beneficiaries and Cabal:. Anybody
that buys fuel at N65 benefits from the subsidy. By context, all Nigerians can
therefore be adjudged beneficiaries of fuel subsidy. Companies that imports
fuel and entitled to subsidy refunds are therefore claimants. Cabals, this term
have been loosely used to refer to all the companies that have received subsidy
claims. Government erred with the list as it shows that it does not conduct due
diligence on the companies that does business with. How can a contraction
company be involved with fuel importation? The cabals of this construction
company are so mindless that they cannot even register a new company to perpetrate
the nefarious act
3.
Consultation –The Presidency
set itself up against the legislature, an important arm of the government. What
about the masses, what consultation did government do with them? As one
activist said, government had already broken the round table. What about the
oil marketers? Informed sources also said that while consultations were
ongoing, the government also came to down like a bolt from the sky. And if the
PPRA pricing template is anything to go by, the fortune of the marketers will
not fare any differently if petrol is sold at N65 or N141. This goes to
reinforce the position of some economists that this government is actually
broke and in debts with removal of subsidy seen as a fulcrum to get out of the
doldrums.
4.
People oriented implementation –
If government is by the people and for the good of the people. It stands to reason
therefore that the Federal Government will implement its budget in a way and
manner that it will not hurt its people knowing fully well that 90% of its
population live on less than $2 a day( according to UNDP Human Development
Index). Announcing the commencement of the removal on the first day of the year
was a wrong timing in a country that the bulk of the population remains
fatalistic of what you start a week, month or year with will be your success
story throughout the period. The President must have been deluded by the
success of the IBB regime that announced similar measures on January 1, 1986.
5.
Emasculating Opposition – In the public
relations parlance, crisis is often seen as an opportunity to turn adversity
into advantage. This government massively failed to see the growing agitation on
subsidy removal as a platform for engagement and tell its economic
transformation agenda to the organized labour unions. Government was ill
advised to see it as an affront and therefore went for the bloke. It obtained a
court injunction to stop the proposed strike. This action only energized the
labour. What was the result; the strike went on and it was successful
nationwide. Added to this lives were lost due to the excesses of the armed
forces.
In conclusion, I came to the realization that government failed
itself by not finding and presenting a credible rationale for the
implementation of the removal of fuel subsidy and how it will improve our
economic well being. For a government that was already percied as not upbeat
about governance, the quick implementation of the announcement was suspect. For a government that was suspect to the
listening to the dictates of World Bank and IMF through its cronies in
government, it needed to do more to convince Nigerians it has their interest at
heart. For a government that claims to be consulting when perceived to be slow,
why is this exception for that engagement strategy. You can’t cut off a head to
cure a headache.
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