Fuel subsidy removal: a good decision taken too late


I really don't know how I should greet my readers and in what languages I should greet them. I'm a Nigerian not vast at speaking any local language fluently,but will try and greet in English language and the little yoruba language I know.

Congrats on the subsidy removal/happy subsidy removal!(English)

Eku subsidy o!!!(Yoruba)

Now that we're done with the greetings,let's get down to business. Pls,permit me to be as vocal and rude as I want to be. It won't be forever;it will be just this once and the reason I'd like to go that way,is cos I think it's payback time and like you and I know,payback is always a bitch!

I'd love for us,to cast our minds back to january 2012 under the regime of ex-president Goodluck Ebele Jonathan popularly known as GEJ. The PDP government at the time,had concluded that paying subsidy on petroleum products,was a collosal waste of scarce national resources,as the exercise was riddled with monumental fraud,the subsidy itself wasn't getting to the ordinary Nigerians,and that the act of subsidy payment wasn't economically sustainable due to the fact that it only created wealth for a few Nigerians. Government at that time,had decided to take the bull by the horn and do what was right. However,the opposition party at the time,the labour unions,and the oil cartel enjoying the subsidy payments,decided to twist the arms of govt behind,by sponsoring protests to kick against the policy. This protest gave birth to the popular occupy Nigeria protest. Economic activities were shut down for over a month,people couldn't even access cash via ATMs,riots and protests took place at various locations,a lot was said in the media and the whole thing was blown out of proportion. Some irate youths who took to the streets to protest and riot,never made it back home;they were gunned down by trigger happy security agents. The opposition,were very much ready to make the country boil. Government tried in futility to sell this idea to the country,as the very best decision. Some of us who knew this was the right thing to do,tried in our own little ways to educate those around us both one-on-one,and on social media. But our efforts were in futility. We were called all manner of names,maligned so badly,accused of being beneficiaries of the fraud,etc. I took a barage of insults from lots of ignorant folks,arguements became heated and I ended up deleting some friends from way-back,on my facebook. Even my ex-fiancee took part in throwing shades at me and considering we had just broken up,what a perfect opportunity it was for her.
Well,since Nigeria is a land made up of mostly illiterate and ignorant folks,their voices were louder. Negotiations went back and forth and govt jettisioned the idea of a full subsidy removal. Those in power today,were the ones who vehemently opposed the removal of subsidy then. The new government has given us divergent opinions over this subsidy issue. When they were not yet in power,they said there was nothing like subsidy and it was all fraud. They got into power,said there was nothing like subsidy,agreed there was subsidy,back tracked on it,and finally agreed that there was a lot of corruption entangled in the subsidy scheme(the same thing the previous govt said in 2012),and have finally decided to stop paying subsidy. The saying that spectators are always the best players,aptly describes this present govt. Prior to the elections,they had dazzled and bamboozled their teeming supporters with the notion that they had full grasps of how the ideal Nigerian environment should function and work. One of them,a certain Professor David Tam West,had gone on air to do a ludicrous arithmetic of how petrol should be sold for not more than #40 naira per litre. Fans of the new govt had eulogized him and even tipped him to be the incoming petroleum minister. It's amusing that this same "erudite scholar" who had told Nigerians that they could buy PMS for #40 naira,can't help the present govt make that possible. According to unconfirmed statistics,Nigeria spends between $7-8 billion dollars a year on subsidy. If we take the mean of this figure for the last 4 years when subsidy should have been removed,it would give us $7.5 billion dollars a year and when you multiply that by 4,it gives you $30billion dollars in 4 years which amounts to roughly about 5trillion naira in 4 years. This figure sounds too huge to be true and in a bid to give our arguement some kind of credibility,I'd love for us to halve this figure into 2. This would leave us with a conservative figure of about 2.5 trillion naira spent on subsidy in the last 4 years. That's more than half of our previous yearly budgets. In a nutshell,about 2.5 trillion naira has gone into private pockets in the last 4 years. I read a report that stated that Nigeria had spent over 4.5 trillion naira on petrol subsidy in the last 7 years. This was an article published in 2015. It is obvious to every sane person that subsidy should have been removed a long time ago. But the insincerity on the part of politicians in power today,the gullibility of a larger percentage of the populace,and the wickedness and greed that generally permeates the Nigerian society,made this impossible.

In 2012 when subsidy should have been removed,I watched different celebrities(actors and musicians),media practitioners,politicians et al,converge at the popular Ojota garage for days,protesting this noble action. Where are the likes of Seun Kuti,Femi Kuti, KWAM 1, Ras Kimono, Pasuma Wonder, Salawa Abeni, Dede Mabiaku, Eldee, 9ice, Olamide, Ruggedman, Eedris Abdulkareem, Banky W,Ade Bantu,Desmond Elliot, Kunle Afolayan,Bimbo Akintola,Pst Tunde Bakare and others who gathered to dance at Ojoto like witches and wizards in their covens practising witchcraft in excitement? What do they have to say? Do they still want to continue the witchcraft dance at Ojota? Or will they humble themselves to admit they erred in opposing the right decision? These set of people led gullible youths to reject a sound policy,and to encourage profilgacy in the name of subsidy payments. Yes,most of these people are people I personally like in the industry,and some of them are people I have huge admiration and respect for their works. But the truth must be said;they have to tender unreserved apologies to Nigerians,most especially the ignorant youths they misled(those who joined the protest cos they looked up to them as role models).

I am not a fan of Buhari and I have never hidden that fact. Forget about all these integrity gibberish being fed us about him;there are men and women of honor with integrity other than Buhari. Nations all around the world,are looking at electing leaders with charisma and bright ideas and innovations to move their country forward,not old men who should be enjoying their retirement in peace,and acting as elder statesmen. In almost a year of Buhari being in power,we have seen how he has dragged us all back to 1983. Even kids being born today,are being forced to experience the wonders of 1983. It's a shame that in 2015,a country of a 170million Nigerians,couldn't present a better candidate other than a 73 years old leader who had ruled the nation before,to challenge the former president. Everytime I think about it,I almost weep for the youths of my generation.
That being said,I won't act like a hypocrite and join in condemning the subsidy removal;I'm not that stupid. If I supported the policy under Jonathan,why shouldn't I support it under Buhari? The only painful thing is that,we're taking a decision that should have been taken when we still had life in 2012,now that we're almost dead in 2016;I hope and pray we survive it. The naira is almost useless and worthless as at today. Prices of goods and services are already too high and by the time we factor in the subsidy removal,it will further push the cost of goods and services high;how do we navigate this? As painful as it is,as daunting a task as it is,we just have to face it head long. But all in all,this is the only sensible thing I have seen this government do. It's just that it is coming at a bad time.

I read on a few social networks how people are already preparing to do an occupy Nigeria season 2. I hear labour unions are already pushing for a showdown. I'd love to appeal to all those who have this protest and economic shutdown in mind,to please desist from it. They'd only succeed in causing more hardship cos the current Nigerian president is a man that has ears but doesn't listen. If the security agencies kill 1,000 people as a result of this,it won't move him. Infact,as the security agents starts killing you guys,he'd be on the way to the airport to board the Nigerian "Airforce 1" to UK,and from there announce to the world that the Nigerians being killed,are the ones supporting corruption. You and I know that the only thing Buhari knows,is corruption. You can't ask him any question without him adding corruption to the answer. Please,do not disrupt the plans of other people. I have mouths to feed,I have debtors to settle,I have projects to execute and the economy isn't helping right now. The last thing we want is to lose everything we've worked for and invested in. This is the change you were promised;take up your cross and walk. Let's hope that the removal of subsidy would go a long way in sanitizing the oil sector,and that the subsidy funds would be channeled into more profitable ventures.

Once again,"eku subsidy"(happy subsidy).



This article was written by @RIO_BILLS

Thanks. Let's call on general lalasticlala to help push it to the frontline.

emeraldknytt:
This is absolutely interesting and very apt. I had a few laughs, a couple of frowns and an overall sustaining enjoyment of my time reading this line by line. If i have anything to add, it'll be "eku miliki subsidy". Commendable, Op, commendable!

Tonyebarcanista toks2008 mizmycoli modath sunnybobo firefire acidosis jarus seun ezepromoe modelmike beremx donphilopus phockphockman

Nice read bro... it is a dixey one

You made a lot of sound point. The overall message is on point.

Is lalasticlala sleeping or cause its nt a snake thread

Good message, well written. But I still believe that the protests should go on to show this govt that they can't take us for a ride. They can't just wake up one morning and remove the subsidy. They should have consulted with Nigerians first, provided palliative measures, waited until things got better a bit, etc.

If we keep quiet now, they'll keep bringing up useless n wasteful policies, because nobody will talk or do anything.

When I first heard the word PSYCHOLOGY, I spelt it as SYCOLOGY. I didn't know there was a silent P
When APC promised us N45 as pms pump price, I didn't also know there was a silent 'hundred'
*Copied*

Rose2014:
When I first heard the word PSYCHOLOGY, I spelt it as SYCOLOGY. I didn't know there was a silent P
When APC promised us N45 as pms pump price, I didn't also know there was a silent 'hundred'
*Copied*

You no go kill me with laff for NL


..Just as Nigerians didn't hear the word 'CHAINS' and thought it was 'CHANGE' because of accent ..

Everybody just spewing rubbish since yesterday

Timing is everything we need to be piping as a nation

https://www.youtube.com/watch?v=XkiH08KofMo

WRONG TIMING

Better late than never.

K

I don't support this Buhari's administration at all but this subsidy removal is a hard step in the right direction for our dear country. Pls let us all not base our judgement on its failure in the last administration as we all know it was politically motivated, rather we should all focus on the advantage of it.. very soon, the price of fuel will be determined by the law of demand and supply thereby reducing the price from the govt regulated price and when our refineries start working including Dagote's, we might end up buying fuel as low as #100.. furthermore, it encourages more private refineries to be constructed in the country or do we think only Dangote has the money for it?.

You spoke my mind, bro. The pains of the removal would have long subsided if it wasn't opposed for political gains in 2012. It is better late than never though.
I hope Nigerians can now see that those who claimed to know the way are only taking them down the same path they should have taken four years back.

ion gerrit

People said u made sense.

That means I will come back to study it. ..

I must see and experience the benefits before supporting such a sarcastic motion

EVILFOREST:
People said u made sense.
That means I will come back to study it. ..

laziness of the highest order

Yesterday I went to buy fuel, the attendant asked me how much fuel you want or I should I fill up? I replied just dey put am, I will tell you when to stop (I normally fill my tank with N4500), so I momentarily forget that the price is now N145 and turned to pick up the N5000 I had budgeted to buy fuel from my car pigeon hole, before I looked back the meter was reading N8000 'otio! I was embarrassed and had to pack the car there to go and use ATM from a nearby bank to complete their money.
That was when the increment hit me gbosa!!!

Okay

Yes

We hear.
How can you deregulate a sector and still fixed a price ceiling? This is just a wicked increment in pump price.

chronique:
Fuel subsidy removal: a good decision taken too late


I really don't know how I should greet my readers and in what languages I should greet them. I'm a Nigerian not vast at speaking any local language fluently,but will try and greet in English language and the little yoruba language I know.

Congrats on the subsidy removal/happy subsidy removal!(English)

Eku subsidy o!!!(Yoruba)

Now that we're done with the greetings,let's get down to business. Pls,permit me to be as vocal and rude as I want to be. It won't be forever;it will be just this once and the reason I'd like to go that way,is cos I think it's payback time and like you and I know,payback is always a bitch!

I'd love for us,to cast our minds back to january 2012 under the regime of ex-president Goodluck Ebele Jonathan popularly known as GEJ. The PDP government at the time,had concluded that paying subsidy on petroleum products,was a collosal waste of scarce national resources,as the exercise was riddled with monumental fraud,the subsidy itself wasn't getting to the ordinary Nigerians,and that the act of subsidy payment wasn't economically sustainable due to the fact that it only created wealth for a few Nigerians. Government at that time,had decided to take the bull by the horn and do what was right. However,the opposition party at the time,the labour unions,and the oil cartel enjoying the subsidy payments,decided to twist the arms of govt behind,by sponsoring protests to kick against the policy. This protest gave birth to the popular occupy Nigeria protest. Economic activities were shut down for over a month,people couldn't even access cash via ATMs,riots and protests took place at various locations,a lot was said in the media and the whole thing was blown out of proportion. Some irate youths who took to the streets to protest and riot,never made it back home;they were gunned down by trigger happy security agents. The opposition,were very much ready to make the country boil. Government tried in futility to sell this idea to the country,as the very best decision. Some of us who knew this was the right thing to do,tried in our own little ways to educate those around us both one-on-one,and on social media. But our efforts were in futility. We were called all manner of names,maligned so badly,accused of being beneficiaries of the fraud,etc. I took a barage of insults from lots of ignorant folks,arguements became heated and I ended up deleting some friends from way-back,on my facebook. Even my ex-fiancee took part in throwing shades at me and considering we had just broken up,what a perfect opportunity it was for her.
Well,since Nigeria is a land made up of mostly illiterate and ignorant folks,their voices were louder. Negotiations went back and forth and govt jettisioned the idea of a full subsidy removal. Those in power today,were the ones who vehemently opposed the removal of subsidy then. The new government has given us divergent opinions over this subsidy issue. When they were not yet in power,they said there was nothing like subsidy and it was all fraud. They got into power,said there was nothing like subsidy,agreed there was subsidy,back tracked on it,and finally agreed that there was a lot of corruption entangled in the subsidy scheme(the same thing the previous govt said in 2012),and have finally decided to stop paying subsidy. The saying that spectators are always the best players,aptly describes this present govt. Prior to the elections,they had dazzled and bamboozled their teeming supporters with the notion that they had full grasps of how the ideal Nigerian environment should function and work. One of them,a certain Professor David Tam West,had gone on air to do a ludicrous arithmetic of how petrol should be sold for not more than #40 naira per litre. Fans of the new govt had eulogized him and even tipped him to be the incoming petroleum minister. It's amusing that this same "erudite scholar" who had told Nigerians that they could buy PMS for #40 naira,can't help the present govt make that possible. According to unconfirmed statistics,Nigeria spends between $7-8 billion dollars a year on subsidy. If we take the mean of this figure for the last 4 years when subsidy should have been removed,it would give us $7.5 billion dollars a year and when you multiply that by 4,it gives you $30billion dollars in 4 years which amounts to roughly about 5trillion naira in 4 years. This figure sounds too huge to be true and in a bid to give our arguement some kind of credibility,I'd love for us to halve this figure into 2. This would leave us with a conservative figure of about 2.5 trillion naira spent on subsidy in the last 4 years. That's more than half of our previous yearly budgets. In a nutshell,about 2.5 trillion naira has gone into private pockets in the last 4 years. I read a report that stated that Nigeria had spent over 4.5 trillion naira on petrol subsidy in the last 7 years. This was an article published in 2015. It is obvious to every sane person that subsidy should have been removed a long time ago. But the insincerity on the part of politicians in power today,the gullibility of a larger percentage of the populace,and the wickedness and greed that generally permeates the Nigerian society,made this impossible.

In 2012 when subsidy should have been removed,I watched different celebrities(actors and musicians),media practitioners,politicians et al,converge at the popular Ojota garage for days,protesting this noble action. Where are the likes of Seun Kuti,Femi Kuti, KWAM 1, Ras Kimono, Pasuma Wonder, Salawa Abeni, Dede Mabiaku, Eldee, 9ice, Olamide, Ruggedman, Eedris Abdulkareem, Banky W,Ade Bantu,Desmond Elliot, Kunle Afolayan,Bimbo Akintola,Pst Tunde Bakare and others who gathered to dance at Ojoto like witches and wizards in their covens practising witchcraft in excitement? What do they have to say? Do they still want to continue the witchcraft dance at Ojota? Or will they humble themselves to admit they erred in opposing the right decision? These set of people led gullible youths to reject a sound policy,and to encourage profilgacy in the name of subsidy payments. Yes,most of these people are people I personally like in the industry,and some of them are people I have huge admiration and respect for their works. But the truth must be said;they have to tender unreserved apologies to Nigerians,most especially the ignorant youths they misled(those who joined the protest cos they looked up to them as role models).

I am not a fan of Buhari and I have never hidden that fact. Forget about all these integrity gibberish being fed us about him;there are men and women of honor with integrity other than Buhari. Nations all around the world,are looking at electing leaders with charisma and bright ideas and innovations to move their country forward,not old men who should be enjoying their retirement in peace,and acting as elder statesmen. In almost a year of Buhari being in power,we have seen how he has dragged us all back to 1983. Even kids being born today,are being forced to experience the wonders of 1983. It's a shame that in 2015,a country of a 170million Nigerians,couldn't present a better candidate other than a 73 years old leader who had ruled the nation before,to challenge the former president. Everytime I think about it,I almost weep for the youths of my generation.
That being said,I won't act like a hypocrite and join in condemning the subsidy removal;I'm not that stupid. If I supported the policy under Jonathan,why shouldn't I support it under Buhari? The only painful thing is that,we're taking a decision that should have been taken when we still had life in 2012,now that we're almost dead in 2016;I hope and pray we survive it. The naira is almost useless and worthless as at today. Prices of goods and services are already too high and by the time we factor in the subsidy removal,it will further push the cost of goods and services high;how do we navigate this? As painful as it is,as daunting a task as it is,we just have to face it head long. But all in all,this is the only sensible thing I have seen this government do. It's just that it is coming at a bad time.

I read on a few social networks how people are already preparing to do an occupy Nigeria season 2. I hear labour unions are already pushing for a showdown. I'd love to appeal to all those who have this protest and economic shutdown in mind,to please desist from it. They'd only succeed in causing more hardship cos the current Nigerian president is a man that has ears but doesn't listen. If the security agencies kill 1,000 people as a result of this,it won't move him. Infact,as the security agents starts killing you guys,he'd be on the way to the airport to board the Nigerian "Airforce 1" to UK,and from there announce to the world that the Nigerians being killed,are the ones supporting corruption. You and I know that the only thing Buhari knows,is corruption. You can't ask him any question without him adding corruption to the answer. Please,do not disrupt the plans of other people. I have mouths to feed,I have debtors to settle,I have projects to execute and the economy isn't helping right now. The last thing we want is to lose everything we've worked for and invested in. This is the change you were promised;take up your cross and walk. Let's hope that the removal of subsidy would go a long way in sanitizing the oil sector,and that the subsidy funds would be channeled into more profitable ventures.

Once again,"eku subsidy"(happy subsidy).



This article was written by @RIO_BILLS

When GEJ removed subsidy in 2012 and suggested that the price of PMS will go up to N120, some people organised occupy Nigeria. Four years down the line, Buhari is repeating the very same thing with higher scourge of proposed N145 per litre and no one is talking. I am happy we have learnt the hard way to think before opposing policies.
However, I have a concern here. Why must this govt tell lies to Nigerians? I have said it over and over again that you cannot remove subsidy and have official price. Petrol is not different from egusi or rice marketing. You can only have official price if you regulate the price of production and wholesale price. If you do not, then it is to whom it may concern.
What subsidy does is to equalise cost and defray excesses on the part of marketers and make it feasible for them to profitably sell the commodity at the same price. If you remove subsidy, you must remove official pump price because you cannot equalise the cost with mouth. people import petrol from all over the world giving rice to differences in landing prices due to freight costs, distances etc.
We must complete the truth and stop playing politics with numbers. People should be told that they are on their own. If you pull up in a garage forecourt, take a glance on the price, if what is there, or what the pump attendant tells you is the price is OK by you, fill up and go your way, if not, go to another station. This is how we buy everything in Nigeria and all over the world. Enough of politics of numbers.

That being said,I won't act like a hypocrite and join in condemning the subsidy removal;I'm not that silly. If I supported the policy under Jonathan,why shouldn't I support it under Buhari? The only painful thing is that,we're taking a decision that should have been taken when we still had life in 2012,now that we're almost dead in 2016;I hope and pray we survive it. The naira is almost useless and worthless as at today. Prices of goods and services are already too high and by the time we factor in the subsidy removal,it will further push the cost of goods and services high;how do we navigate this? As painful as it is,as daunting a task as it is,we just have to face it head long. But all in all,this is the only sensible thing I have seen this government do. It's just that it is coming at a bad time

Well..one thing that OP forgets is that in 2012....WE HAD THE MONEY TO FUND THE SUBSIDY.

In 2016....we do not have the money

The problem with the OP is that he wants us to spend money we do not have to keep the subsidy going. That means only one thing...more loans.

OP's analysis is flawed.

This is a country where any good thing can be turned to bad and senseless thing.
Everything are always handled badly that is why the country is in this sorry situation.

Even this subsidy removal might be another curse, one would not be surprised.

No be nigerian "leaders"?

[size=28pt]Op, i dont know where your facts where drawn from.. Dis same PMB buhari once said on Aired CNN dat he doesn't know the meaning of subsidy.. That when he was a minister of petroleum.. Back 1984 all the refineries where working and there was no subsidy at that time.. I believe is lying crab.. And voted him in by monitoring my vote for dis old man.. Now he doesn't consider.. The Nigerian youths.. The hell we all have been going through daily.. No job, no food, no power supply.. One thing i hate dis Nigerian constitution for.. We believed trash.. And we dont have Back up.. Plan.. My heart aches just thinking about the Name Nigeria and its One sided policies . [/size]