…it is evident that the closer one is
to government the less possible it is to
see reality and feel the people’s pulse.
The ordering of policies – however
necessary they are – is a bit reckless. A
carrot-and-stick policy should have some
carrots. Where are the carrots here? All
we see is the stick. Poor Nigerians are
being made to feel like they are the
cause of Nigeria’s malaise. All we hear is
how we should bear more and more
pains, because ‘Baba is working hard for
all of us’.
The Federal Government, after a meeting with
unions, NNPC and other stakeholders, yesterday
announced that it will now ‘fully deregulate’
Premium Motor Spirit (petrol) prices, because it
has come to the conclusion that Nigeria cannot
continue subsidising that subsector, among other
reasons. This action has met with kudos from
many quarters, and knocks from others.
I happen to be one of those who opposed the
removal of subsidies in January 2012, but for me,
the chief reason then was that I believed we
should not be bamboozled into overlooking the
massive fraud that had happened under the so-
called subsidy regime. Nigerians later found out
that N2.3Trillion was paid out as subsidies in
2011 – an unprecedented figure, and a record-
breaking fraud, as most of that were for phantom
fuel supplies. The irony is that today, all the
perpetrators of the heist are still walking around
free, and most of the cases have gone cold –
including the one involving one Honourable
Farouk Lawan who was caught with $600,000 in
his Shagari-type hat, in a sting set up by the SSS
allegedly on the orders of former President
Goodluck Jonathan. Meanwhile, our best shot at
tackling corruption is to pursue one man for false
asset declaration. But I digress.
By every means, the government should exit this
business of ‘subsidy’ because it has enabled
criminals to feed fat on the blood, sweat and tears
of hapless Nigerians. I had advised that
government removed its hands entirely when
crude oil dropped to $28/barrel. That was the
perfect time. But the next best time, is now.
However, trust Nigerians, if government says ‘not
more than N145, hardly will anyone sell below
that upper limit. My observation of the type of
economic system we have been running for the
past decade is one which enables superrich
people to take advantage of the poor. It is
scorched-earth capitalism.
There are many issues that need to be carefully
considered, this morning after the government
‘bit the bullet’. First, how did PMS prices climb up
to N145 in Nigeria in a time when crude oil – and
PMS prices – are at all-time-lows elsewhere? What
happens when crude oil climbs to $80 or more?
Officially, naira has devalued by about 33 percent
since 2011 when fuel sold at N65 (even though
with much subsidy). The point is that we were
never able to shake this subsidy thing. Even
when crude oil price went as low as $28, the
PPPRA still alleged that subsidy was being paid –
even though they claim that 80 percent of pump
price depends on global crude prices. The bond
between the regulators and importers/marketers
is so strong, and the poorest of the poor bear the
brunt of their incest. An importer told me over
the weekend how he imports at anything
between N86 and N150 per litre (landing price),
with his transportation cost from the ports to
filling station being N14 per litre, and I asked how
come their prices never go down even though in
the countries where they buy these refined
crude, prices have crashed – sometimes up to 70
percent!
I pity the poor in Nigeria. If fuel has
moved from N3.00 in the time of
Obasanjo, to N65 under Yar’Adua, to N97
under Jonathan (whom we fought to a
standstill for trying to move it to N140)
and now N145 without debate, BY HOW
MUCH HAVE PEOPLE’S SALARIES GROWN?
… I just feel like living standards are
dropping; a helpless, sinking feeling like
it will all catch up with one soon enough.
Crude oil prices determine pump price in other
places. I recall that two years ago, PMS was $4.00
per gallon in Houston, TX, USA. The last time I
was there – two weeks ago – it was $1.80. In
London, the pump price is presently an average
of GBP1.08 (or $1.50 per litre). It used to be over
GBP2.00. In the UK, 61 percent of fuel price is
taxes (partly to discourage people from driving
but to instead use the train and buses). So, the
real price is much less than what appears at the
filling station.
The reality – to Nigerians – is that as the price falls
elsewhere, it climbs in Nigeria. Mind you, in these
other countries, not only is per capita GDP (or
average income), like 100 times more than
Nigeria, but they also (like London) have fantastic
and cheap transport systems that makes it totally
optional for one to drive into any filling station. In
fact most workers have no cars, and when they
do, they use them sparingly. We can see Mayors
(Governors), and even their Prime Ministers,
inside trains and buses. This way, they use the
services they provide and are able to assess their
efficacy. The story is different here. Government
hardly exists for the poor.
The other issue is how this pans out from today. I
bought fuel in Minna about a month ago at N300
per litre. In Kaduna three weeks ago it was N230.
Those guys are not going to listen to this ‘NOT
MORE THAN N145’ business. Will petrol stations
selling above N145 in most places in Nigeria
suddenly reduce their prices? I doubt it. When
Kachikwu came with ‘price modulation’ I said it
was meaningless then, but the crowd of
cheerleaders, cheered him on. Then they ran into
a sandbank and have had to now ‘deregulate’.
But is this full deregulation? Why should
government have anything to say about prices in
a full deregulation regime? Regulation should be
about quality, but we know – in a country where
PPPRA and co issue certificates of delivery for
empty tankers and tankers laden with water –
that no one will regulate any quality. All sorts of
fuel will make it into Nigeria. From red, to pink, to
yellow, to colourless PMS. We are used to all that.
But if the NNPC says nothing about prices, do our
wonderful importers and marketers want to sell
PMS at N2,000 per litre?

blogs.premiumtimesng.com/2016/05/12/stick-no-carrots-morning-buharis-petrol-deregulation-tope-fasua/

Change change change egbugo Nigeria ooo #singing.

Nigeria is 'TECHNICALLY' finished

And the stick came heavily on us....Maybe the carrots are still being harvested

I very much agree with the op
Things are very bad in This country right now and lots of time I wonder how we got here
Either by array of bad buhari policies or by years of stealing is not corruption
Something is very wrong with this country
It's well.
All sticks and no carrot ?

Same old story.

Government will never get better. Inflation will continue to rise. Leaders will continue to improve in their methods of robbing their countries. The masses will continue to wail and lament.

ENDTIME THINGS.

* * * * * * whistling away....