Subsidy Clarifications and Queries – An Open Letter to the Economic Team

Sequel to my previous articles on the aforementioned subject (https://www.nairaland.com/nigeria?topic=839088.msg9897217#msg9897217 and https://www.nairaland.com/nigeria?topic=841911.msg9922832#msg9922832), I hereby wish continue the discussion. It is outright blackmail for government to say the reason for the subsidy removal is to have more money to expend on Infrastructure without answering basic questions. I will continue to share my views until the government acts appropriately. We have heard insinuations and counter denials from government officials of economic collapse and the Nation being broke. What is pertinent is the primary unit of existence which is the family, which in Nigeria's case is characterised by the poor masses. Kindly clarify the following:


1. Show us the relevant sections of the 2011 Budget where the provision of subsidy is stated. With or without this, I am right to say the government kept spending money as desired from the Federation account and also borrowing as alleged until it reached the unprecedented N1.3trillion. Perhaps to itself and cronies to fund the elections as against subsidies.

2. Publish the breakdown of the N1.3trillion spent on subsidies in 2011. Mrs. Okonkjo Iweala stated that she met N1trillion already spent and she did not deem it fit to investigate the astronomical increase from an estimated N250billion

3. Publish the projects executed with the N1.147trillion budgeted for capital expenditure in 2011. Why mislead the people that the reason for maternal mortality, poor health care and dearth of infrastructure is as a result of subsidy? What happened to the budget allocations for these sectors?

4. What is the difference between the SURE projects and the Capital expenditure projects to be executed by the MDAs? Will this not mar ease of management?

5. Shall we be left to purchase refined PMS at the rate of international crude oil prices? What will happen to Nigerians when the cost of crude oil soars above a permissible price in the international market? Are we to flow with the market forces, hence N141 today and perhaps N300 later? Will the government embezzle gains of increased crude oil prices as previously done under the auspice of more money for infrastructure whilst its populace languish from increased prices?

6. Asking Nigerians to pay N141 per litre for PMS because the neighbouring countries pay more for PMS thereby forestalling smuggling at cheaper prices is ludicrous. Can’t the FGN be more responsible to its citizenry? This affirms that the government cannot tackle corruption neither can it protect its borders. If true, this is shameful and a planned attempt to impoverish Nigerians. The standard of living in these countries is better than ours. Dependencies on PMS are not same as they are in Nigeria. We are producers of crude oil.

7. Is the government aware that there is an opportunity in the constraint in ‘6’ above? What it implies is that if we sell refined crude oil as PMS to these neighbouring countries at competitive price we will make more revenue.

8. Thus why not devote all efforts to ensure the refineries work at optimum maximum level via a PPP model. The government’s equity can be sourced from the gains from excess crude oil. This will effectively reduce unemployment too.

9. Is it impossible to set aside 100,000 barrels (15.9 million litres) daily for local consumption to be refined by a government approved model?

10. Is this government aware that the price of PMS determines the price of every major consumer goods produced for the poor in Nigeria? How will the poor Nigerians survive without a corresponding proportional increase in wages and salaries?

11. Can this government provide the Risk Assessment & Management Plan carried out before the subsidy removal was announced? Statements such as it will result in ‘temporary hardship’ are shallow coming from the crop of members in the Economic team. So far the resultant effect shows the government did not think of the effect aptly but instead developed a misleading plan with emphasis on improving infrastructure from a purported subsidy savings when monies are voted year in year out without effective use. Please note the amount touted as estimated savings will not solve the problem.

12. The solution to infrastructure lies in reducing current expenditure in the budget and transferring the savings to capital expenditure with apt monitoring and control. Do you believe?

13. Does the government believe that PMS can be sold for N65 or less without subsidy? The analysis has been done by renowned experts. Has the government looked at the analysis?

14. Please publish what the N4trillion (provide the actual figure) gained in 2011 from excess crude oil was used for. Instead of using the terms savings on Subsidy removal (which does not exist), why not set up a committee to monitor the use of savings on crude oil. Definitely, some money will go to infrastructure from the savings, more money will go to the three tiers of government for defined purposes etc.

15. Please publish in full, the revenue generated from Crude oil, mineral resources, Agriculture, Taxes and import duties in 2011. The estimated revenue at the time of presenting the budget proposal in 2011 was N3.348trillion. From my calculation, this government definitely made over N8 trillion in 2011. Approved budget for 2011 was N4.485trillion

16. Please publish the state of the foreign reserves and the activities (expenditure and addition) since 2007 ( GEJ was part of the government)

17. I reiterate again, the poor Nigerians cannot afford to bear the consequences associated with the geometrical increase in the cost of PMS because it affects everything. You cannot afford to spend what you do not have.

18. It is wrong to say the effect of selling crude oil at N65 (via subsidy or not) did not reach the masses as said by member s of the Economic team. The hardship experienced in the last one week and subsequent uproar is evident. I would only agree that the supposed subsidy did not get to the masses if the government agree that the monies were truly not used for crude oil but mismanaged and approved by government illegally to their cronies.

19. Lastly we demand plans from this Economic team, proposal and ways to diversify the economy. It is evident that this economy cannot continue to depend on crude oil.

20. A major factor for foreign investment and economic boom is a conducive environment with suitable security of lives and property. The incessant bombings of civilians and violent unrest in the country will mar any economic gain if not adequately managed. The State of Emergency has not succeeded in curtailing this menace. More lives are lost daily. Please act expediently. Nigerians are suffering amidst affluence. Enough is enough.

Concerned Nigerian

I wish Mrs. Iweala and Mallam Sanusi Lamido Sanusi can be asked these questions whilst at AIT.

There are more questions begging for answers, if they both escaped being ask now while they are in AIT, we will continue to ask these questions at every forum and any given opportunity to do so in the future.

Bunch of blocked heads, intellectual vegetables trying to force "CALIBATOCRACY" form of government down our throat. Only God will judge you.

Tru tlk dandoskyyyyy.
Papa Tony. *winks*

And this has been the point all along!
The fact that they cannot/will not answer these questions shows that without a doubt these govt. is peopled by vampires. Evil evil people.
Can the FOI act be used to demand answers?

@op,
ur head dey dia!
Dem tink sey na only dem go school and sabi speak big big gramma wey no solve our various problems. Dem wan tell us sey 9ja no fit survive if we no get oil. Deal with d corruption and wastages in running d government dat one hard for dem.

Thanks guys. We must keep the hope alive.

Please Mrs Deizani Allison Madueke should be also asked where the money realized from crude sales go to, detailed analysis below:

[b][b]If Nigeria were to refine all the Crude Oil necessary to meet Local Demand, we might have to refine like 400,000 barrels more than we currently do per day. So, since, we don’t refine that Crude which is meant for Nigerians internal consumption, the Nigerian Government sells that Crude on the International market as part of its export. For example, if Nigeria exports approximately 2 million barrels per day. If the refineries were working, Nigeria will only be able to sell 1.6million barrels per day. So, we can safely assume that extra 400,000 barrels of Crude Oil is being sold on behalf of the Nigerian people daily. Bringing out our Calculator again: 400,000 * $106 * 365days = $15.48 billion, but as Mrs DAM has successfully hidden from us what percentage exactly the Nigerian Government profits from Crude Sales, let us assume only half (50%) of it is remitted back to the Nigerian government. That gives us $7.73billion which is approximately N1.2 trillion. This amount alone covers for the subsidy of PMS. Where does that Money go to?[/b][/b]

[s][/s]hmmmmmmmmmm
questions still begging for answers.
hapi democracy day....