By Farooq A. Kperogi

On Monday January 9, my 7-year-old daughter and I joined many Americans from the “Occupy Atlanta” movement or, as they like to call themselves, “Atlanta’s 99 percent,” to protest against President Goodluck Jonathan’s revoltingly conscienceless war on the poor though his thoughtless and ill-conceived hike in petrol prices.

We converged at the Nigerian Consulate in Atlanta in symbolic solidarity with the admirably dauntless Nigerian people at home who have chosen to bracket their differences and unite in defense of their common humanity against a notoriously malevolent and incompetent government.

Atlanta is just one of several cities where ordinary Americans of all races came out forcefully and passionately to support Nigerians against this embarrassingly inept, IMF/World Bank-controlled government. Across major cities in America, scores of Americans are joining Nigerians in America in demonstrations against the most usurious petrol price hike in Nigeria’s entire history.

But why would Americans who live thousands of miles away from Nigeria and who have a reputation for being provincial and indifferent to world events that have no direct consequence on their lives be interested in what goes on in our country?

There are three reasons. First, the Internet, especially social media, has annihilated the boundaries of time and space in hitherto unthought-of ways. A lot of Americans became aware of the desperate conditions of the Nigerian people at home not through their legacy, mainline news media, but through online social networks and citizen blogs.

I take delight in saying that my October 22, 2011 article titled “Fuel Subsidy Removal: Time to ‘Occupy’ Nigeria!” and a sequel titled “Biggest Scandal in Oil Subsidy Removal Fraud” were major catalysts in this awakening. The articles went viral on the Internet, attracted an unprecedented traffic to my blog, and caused scores of inquiries to be directed at me Of course, as I said on my Facebook page, I don't claim any credit for the “Occupy Nigeria” movement. I think its emergence is the product of a spontaneous outpouring of righteous anger against a smothering and insensitive government policy. Of course, several other Nigerians also wrote many thoughtful articles and analyses on the cruelty, fraud, and illogic of the Jonathan government’s inhuman petrol price hike. These disparate initiatives all coalesced to form a compelling social media narrative of what is going in Nigeria.

The second reason ordinary Americans identify with the current struggles of the Nigerian people is that many of them were intensely scandalized to learn that Nigerians, 80 percent of whom live on less than $2 a day, were paying more for petrol than they who live in the world’s wealthiest nation. The lowest paid worker in America receives the equivalent of 185,00 naira per month. Nigeria’s current minimum wage of 7,500 naira translates into $47 dollars a month. If the Jonathan government honors its promise to increase the minimum wage to 18,000 naira, that would translate into $112 per month.

A softhearted American friend of mine who saw this statistic wept profusely a few days ago. “That’s just not fair!” she cried. “Someone with a 47-dollar-a-month wage pays $3.6 for a gallon of gas while a minimum wage worker in Georgia who receives nearly $8 an hour pays $2.99 for the same? That’s just wrong on so many levels!”

She would probably have literally cried her heart out if she knew that the Nigerian government actually pays millions of dollars to an avaricious cabal of primitive capitalist vultures to import toxic, low-grade refined petrol into the country. As I said in a previous article, the petrol price comparison between Nigeria and the United States— and other countries— is, in fact, grossly inaccurate because all of the petrol that is imported to Nigeria is so low-grade that it’s a criminal offense to use it in America, Europe, and other parts of the world.

Thirdly, and most importantly, contrary to the intentional lies being hawked by the economic policy thugs of the Jonathan administration, the American government heavily SUBSIDIZES the fuel consumption of its citizen. Most responsible, socially sensitive governments do.

According to a TIME Magazine article of January 3, America’s 50 states collectively spend $10 billion a year to subsidize the fuel consumption of their citizens. In America, with all its vast material prosperity, the surest way for any government to collapse irretrievably is to encourage any policy that causes the price of petrol to go up. As TIME put it beautifully, “One of the fastest ways to alienate voters is to be seen supporting anything that intensifies pain in the pump.”

American state governments subsidize petrol prices for their citizens through low taxes on their oil companies. During the 2008 presidential election, for instance, Hilary Clinton and John McCain, in fact, advocated a “gas tax holiday” regime. That meant oil companies would not be taxed at all for an extended period so that gas prices would come down by about 18.4 cents a gallon for petrol and about 24.4 cents for diesel.

According to TIME, “politicians’ refusal to increase gas taxes in line with inflation and construction costs starves needed infrastructure of funding.” Sounds familiar? The perennial reason our governments in Nigeria advance to increase fuel prices is that the government needs money for “infrastructural development,” which by the way is a fat lie. (They should be honest for once and admit that they need more money to steal). But the point is that no responsible government starves its people to death because it wants to build infrastructure. Only the living use infrastructure.

[b]There is an instructive example in the Midwestern state of Iowa of how a caring government, faced with a cash crunch, responded to recommendations for an increase in petrol prices to raise money. I will reproduce parts of the story, which is from TIME, without authorial intervention:

“In Iowa, which hasn’t raised its tax in 22 years, a citizen advisory panel recommended an 8 cent to 10 cent bump per gallon in November. Republican Gov. Terry Branstad quickly took any increase off the table, instead asking his Department of Transportation to look for savings.

“‘Everyone realizes that we need more funding for roads and bridges,’ said Tim Albrecht, a spokesman for Branstad. ‘I don’t think the legislature was especially willing to put a burden on Iowa’s tax payers at this time.’”

So an American state was in dire need of money to fund projects that would benefit the people and a panel made up of professionals not affiliated with the government recommended that the government increase the pump price of petrol to raise cash.

What did the government do? It said no. It said increasing petrol prices by just 8 or 10 percent would impose an unbearable burden on its citizens. It then said the state should raise money by SAVING. And this is a state in the wealthiest country on earth. Do you see any parallels here with Nigeria?
[/b]
Well, that’s why every American who is familiar with what is happening in Nigeria is deeply angry with Jonathan on our behalf. So don’t give up, Nigerians. The whole world is watching you, supporting you, and celebrating your extraordinary gallantry!

According to TIME, “politicians’ refusal to increase gas taxes in line with inflation and construction costs starves needed infrastructure of funding.” Sounds familiar? The perennial reason our governments in Nigeria advance to increase fuel prices is that the government needs money for “infrastructural development,” which by the way is a fat lie. (They should be honest for once and admit that they need more money to steal). But the point is that no responsible government starves its people to death because it wants to build infrastructure. Only the living use infrastructure.

There is an instructive example in the Midwestern state of Iowa of how a caring government, faced with a cash crunch, responded to recommendations for an increase in petrol prices to raise money. I will reproduce parts of the story, which is from TIME, without authorial intervention:

“In Iowa, which hasn’t raised its tax in 22 years, a citizen advisory panel recommended an 8 cent to 10 cent bump per gallon in November. Republican Gov. Terry Branstad quickly took any increase off the table, instead asking his Department of Transportation to look for savings.

“‘Everyone realizes that we need more funding for roads and bridges,’ said Tim Albrecht, a spokesman for Branstad. ‘I don’t think the legislature was especially willing to put a burden on Iowa’s tax payers at this time.’”

So an American state was in dire need of money to fund projects that would benefit the people and a panel made up of professionals not affiliated with the government recommended that the government increase the pump price of petrol to raise cash.

What did the government do? It said no. It said increasing petrol prices by just 8 or 10 percent would impose an unbearable burden on its citizens. It then said the state should raise money by SAVING. And this is a state in the wealthiest country on earth. Do you see any parallels here with Nigeria?

Thirdly, and most importantly, contrary to the intentional lies being hawked by the economic policy thugs of the Jonathan administration, the American government heavily SUBSIDIZES the fuel consumption of its citizen. Most responsible, socially sensitive governments do.

According to a TIME Magazine article of January 3, America’s 50 states collectively spend $10 billion a year to subsidize the fuel consumption of their citizens. In America, with all its vast material prosperity, the surest way for any government to collapse irretrievably is to encourage any policy that causes the price of petrol to go up. As TIME put it beautifully, “One of the fastest ways to alienate voters is to be seen supporting anything that intensifies pain in the pump.”

American state governments subsidize petrol prices for their citizens through low taxes on their oil companies. During the 2008 presidential election, for instance, Hilary Clinton and John McCain, in fact, advocated a “gas tax holiday” regime. That meant oil companies would not be taxed at all for an extended period so that gas prices would come down by about 18.4 cents a gallon for petrol and about 24.4 cents for diesel.

By Bryan Walsh

As we mark the official start of the never-ending U.S. Presidential campaign with tonight’s Iowa caucuses, it’s worth remembering the one thing that politicians would be wise not to fiddle with during an election year: gas prices. One of the fastest ways to alienate voters is to be seen supporting anything that intensifies pain in the pump. Remember John McCain’s proposal during the 2008 elections—backed by Hillary Clinton—for a “gas tax” holiday ? That’s one reason why—as POLITICO reports today —U.S. states lose collectively $10 billion a year, thanks to politicians’ refusal to increase gas taxes in line with inflation and construction costs, which starves needed infrastructure of funding. But the political cost of messing with gas is simply too high:

For politicians, the decision of supporting a gas tax increase isn’t one to be made lightly. In Iowa, which hasn’t raised its tax in 22 years, a citizen advisory panel recommended an 8 cent to 10 cent bump per gallon in November. Republican Gov. Terry Branstad quickly took any increase off the table, instead asking his Department of Transportation to look for savings. “Everyone realizes that we need more funding for roads and bridges,” said Tim Albrecht, a spokesman for Branstad. “I don’t think the legislature was especially willing to put a burden on Iowa’s tax payers at this time.

Assuming U.S. politicians did have the gumption to increase gas taxes—even just to bring them in line with inflation—there’d be a lot of unhappiness, and a few pols might end up losing their jobs. But I’m betting there would not be major protests in the streets that could potentially bring down the national government. Nigeria, however, is different.

For politicians, the decision of supporting a gas tax increase isn’t one to be made lightly. In Iowa, which hasn’t raised its tax in 22 years, a citizen advisory panel recommended an 8 cent to 10 cent bump per gallon in November. Republican Gov. Terry Branstad quickly took any increase off the table, instead asking his Department of Transportation to look for savings.

“Everyone realizes that we need more funding for roads and bridges,” said Tim Albrecht, a spokesman for Branstad. “I don’t think the legislature was especially willing to put a burden on Iowa’s tax payers at this time.

More than $300 billion a year is spent globally on subsidies for oil. We often imagine that money going to line the pocket of rich oil company executives—and indeed, Big Oil does benefit from subsidies. But much of that money is spent as it is in Nigeria, keeping fuel affordable for the poor—and incidentally, keeping them pacified. Yet oil subsidies simply aren’t sustainable—not for the climate, because they prop up inefficient use of oil (like in Venezuela, where gas is cheaper than water), and not for the global economy. And as oil prices rise—as they’re likely to keep doing in 2012—those subsidies will cost poor governments more and more, which is why you’re likely to see other countries to follow Nigeria’s lead. Just don’t expect the changes to be smooth.

Read more: http://ecocentric.blogs.time.com/2012/01/03/petrol-politics-why-nigerians-are-enraged-over-cuts-in-oil-subsidies/#ixzz1jS19eggS

LAGOS, Nigeria) — A national strike paralyzed much of Nigeria on Monday, with more than 10,000 demonstrators swarming its commercial capital to protest soaring fuel prices and decades of government corruption in the oil-rich country.

Some protesters pulled metal barriers into the street, while others took gasoline from motorbikes to set tires ablaze. Others waved placards bearing an effigy of President Goodluck Jonathan with devil horns and fanged teeth, and showing him pumping fuel at a gas station. (See pictures of Lagos.)

"Our leaders are not concerned about Nigerians. They are concerned about themselves," said protester Joseph Adekolu, a 42-year-old accountant.

Police carrying Kalashnikov rifles and gas masks largely stood by as the demonstrators marched on the first day of an indefinite strike called by labor unions. Protesters also took to the streets in Nigeria's capital of Abuja.

Gas prices have risen from $1.70 per gallon (45 cents per liter) to at least $3.50 per gallon (94 cents per liter) since a government fuel subsidy ended on Jan. 1 at the orders of Jonathan's administration. That spurred a spike in prices for food and transportation across a nation of more than 160 million people, most of whom live on less than $2 a day.

While lawmakers on Sunday rebuked the president's decision, the unions said they would continue their strike.

Bola Adejobi, 53, said she's protesting against more than just fuel costs. For her and many others in Africa's most populous country, the strike represents anger that much of the nation remains without electricity and clean drinking water after more than 50 years of oil production.

"It is high time to take Nigeria into our hands," Adejobi said. "It happened in Egypt. It happened in Libya."

Nigeria's finance minister said the country has been using borrowed funds to maintain the subsidy.

"Greece got where it is now because for years, they didn't do the right thing. They kept borrowing and borrowing to finance development," Ngozi Okonjo-Iweala told local television station Channels TV on Monday. "We can't keep borrowing to finance our development."

Two major unions have said they will maintain the strike despite a court restraining order. A similar situation occurred in 2003, when strikers over eight days attacked shops that remained open, took over air traffic control towers and caused a drop in oil production in a country vital to U.S. energy supplies.

Organizers have called for peaceful protests, but gang members already began stoning vehicles and harassing motorists in Lagos. Some riot police stood on hand at the demonstration site Monday. They quickly became outnumbered by protesters.

The strikes comes as activists have begun a loose-knit group of protests called "Occupy Nigeria," inspired by those near Wall Street in New York. Their anger extends to the government's weak response to ongoing violence in Nigeria by a radical Muslim sect that, according to an Associated Press count, killed at least 510 people last year.

Famous Nigerian authors, including Chinua Achebe, issued a statement Monday saying they support the strike, and warning that if left unattended the violence by the extremist group could sweep the country.

"The country's leadership should not view the incessant attacks as mere temporary misfortune with which the citizenry must learn to live; they are precursors to events that could destabilize the entire country," their statement read.

The government has so fair failed to calm public anger over the spiraling gasoline costs. The government has promised that the $8 billion in estimated savings a year from the end of the fuel subsidies would go toward badly needed road and public projects.

One protester in Lagos held his protest sign upside down.

"Our life is already turned upside down," he told a reporter. "It is not how it's supposed to be."

Demonstrators burned a patrol car and a private car parked next to it in the northern city of Kano, filling the sky with billows of smoke as thousands protested below. Some in Nigeria's second-largest city are asking for the government to restore the subsidy. Others want Jonathan to resign. "He cannot rule this country," a placard read.

Some protesters also brought down a fence to the seat of the state of government in Kano where security officers used tear gas and fired at the crowd to keep them from entering the premises.

Eighteen people were wounded in the shootings and stampede that followed, said Dr. Kabiru Abdulsalam, spokesman for the Nigerian Medical Association of Kano.

Associated Press writers Ibrahim Garba in Kano, Lekan Oyekanmi in Abuja and Yinka Ibukun in Lagos, Nigeria contributed to this report.

Read more: http://www.time.com/time/world/article/0,8599,2104014,00.html#ixzz1jS29NgI6

Oil-rich Nigeria ground to a halt Monday amid mass demonstrations and strikes protesting a government decision to end billions of dollars in fuel subsidies that saw pump prices double overnight. At least 20 people were wounded and at least three demonstrators were reportedly killed as police opened fire on protests in the country's business capital, Lagos, as well as in the largest northern city, Kano. Witnesses said police also attacked protesters with batons and tear gas overnight in the capital, Abuja. Banks, airports, gas stations and markets were closed throughout the country on Monday as streets in some of Africa's largest cities, normally blocked solid by traffic, were quiet but for the sound of protests. The violence against protesters comes in a security climate already clouded by mounting Muslim-Christian tensions that have seen an upsurge of sectarian violence in the north.

The demonstrations mark the start of what is expected to be a drawn-out battle that protest organizers have called Occupy Nigeria, adopting the brand name franchised by the Wall Street protests against economic inequality. But while the fuel-price hikes — and their knock-on inflationary effect on the cost of food, power, telecommunications and other essentials — may impoverish poorer Nigerians in the short term, government economists say ending subsidies is essential to the long-term prospects of reducing poverty. The subsidy cut has become the acid test of whether or not President Goodluck Jonathan will succeed in his effort to reform the economy of Africa's most populous country, and one of its most corrupt. (Read "Nigeria's Christmas Bombings Herald Muslim-Christian Conflict."

[b]Nigeria's economic plight, as well as the failure of its political leadership, is encapsulated by the fact that despite being Africa's largest producer of crude oil (ranked fifth among suppliers to the U.S.), it relies on imports for almost all of its own gasoline requirements. The ineptitude and corruption of successive governments has allowed Nigeria's own refineries to rot: funds allocated for maintenance and upgrades have gone missing, not least because annual subsidies to make imported fuel affordable — which amounted to $8 billion in 2011 — have earned fortunes for politically connected fuel importers, [/b]while killing off any incentive to regenerate domestic refining capacity. Almost all of the 2 million barrels a day of crude oil pumped in Nigeria is exported, while four domestic refineries operate at less than 25% capacity, according to industry estimates. And crime is rife: militants, state officials, army officers and others all siphon off crude oil to sell on the black market, while imported fuel is smuggled out of Nigeria and sold to countries where, without subsidies, fuel is three times the price. (See photos of the two sides of Lagos.)

But for many ordinary Nigerians, the import subsidy amounts to the only tangible benefit from their country's oil wealth, and they've previously fought — and won — battles to prevent its removal. Jonathan vows that this time, however, the government will not back down. "If I were in your shoes at this moment, I probably would have reacted in the same manner," he said in a speech on Saturday. But reform, and the fight against corruption, must take priority, he said, adding he would use the money saved to improve Nigeria's decaying infrastructure. "The deregulation policy is the strongest measure to tackle this challenge in downstream sector." As a gesture to skeptics, who say his administration is no less corrupt and self-aggrandizing than its predecessors, he also pledged to reduce salaries of all politicians in the executive branch, which exceed their counterparts in the U.S., by 25%.

Many Nigerians agree with Jonathan's diagnosis of Nigeria's problems but question his methods. "How can you ask people to tighten their belts when you run an obese system?" asked one protester via Twitter. Many believe money saved from the handout withdrawal will go straight into government coffers. "The politicians are using the money from oil to enrich themselves instead of rebuilding our country," said protester John Paul from Benue state in the southeast. "They are talking of building a new refinery, but our current refineries do not even work. They should fight corruption, not the fuel subsidy." Gbenga Bojuwomi, a member of the Youth Reformation Group Nigeria, added: "Why does everything boil down to the masses? Why should we suffer for the mistakes of the government?" At least for now, the credibility of Jonathan's presidency rests on whether Nigerians accept his answers to those questions.

Read more: http://www.time.com/time/world/article/0,8599,2104053,00.html#ixzz1jS31aExc