"Let us make sacrifices now for the benefit of our future generation" That is what they are telling us with respect to the recent fuel price hike in Nigeria. What nobody is explaining to us is what exactly was done. Was is deregulation?, subsidy removal? or just fuel price hike? And what effect is to be expected of this policy?
Deregulation of the downstream sector is what everyone has been asking for. This means the government has no hand in the price of petroleum products. The refineries will be handed to private hands and only market forces will determine the price of fuel. the government will only be involve in consumer protection, like making sure you get the amount of fuel or grade of fuel you paid for. This looks good, but this is not what the government has done.

Subsidy removal means government will no longer pay the excess above a PPPR recommended price to importers to make the product affordable to consumers. Once again, government will also not dictate price to the marketers as they will sell at whatever price they feel they can make their profit. This will initially make fuel price high and then market forces will then bring it down. Fuel will go up and down according to crude oil price and the exchange rate of naira to the dollar. Government can then save that extra money and use it to reduce dependence on petroleum products by investing in mass transport facilities like fast rail service, luxury bus services etc. They could even build more refineries to further force down the price of petroleum products. This policy in the long run is very laudable as it will benefit future generation immensely. However, the information minister of Nigeria has made it known that this is not subsidy removal but just a price hike to help improve availability. In other word, we are not sacrificing now to benefit the future generation, this is just a short term, stop gap measure to make fuel available. Marketers are supposed to source for dollars from the black market and the government feels they can get dollars at N285- N290 per dollar. However, a quick market survey shows that since this announcement, dollar price in the black market has gone from N325 to N360 in port Harcourt. At this price it will be impossible for marketers to break even at N145 per liter, which means the scarcity will remain and government will either have to subsidize or hike the price again. And what happens when crude price increases as it has been on the rise? Fuel will continue to increase, availability in Nigeria reduces and inflation skyrocketing to oblivion.

The Federal government should stop playing on our intelligence and let us know where they stand. Is it deregulation? subsidy removal? or a senseless and unsustainable price hike? What plans/policies do they have for the long term? How long in their economic plans will things be difficult before it starts getting better?. Where is our finance minister? What is the economic way-out of this uncertainty? Where is our economic team? Do they even know what is happening? They need to continuously engage all economic stakeholders and constantly communicate to us, to give us an ideal of where we stand as a country. Also sincerity is key as the stories, counter stories, denials and blame games that have dogged this government since inception is gradually destroying our confidence in this government. As we all know, investors confidence is key to the survival of any economy. we can't be claiming open for business while chasing investors away with lies and propaganda.
Finally, a word on the current NLC strike action. Let me use this medium to congratulate the APC government for succeeding where every other government have failed since 1960, using propaganda to their advantage to clip the wings of the labour union. Now, no strike action or protest will ever be popular again. Unfortunately, we the masses are now voiceless and unprotected . We are on our own.
.. by Obose Ahhideno ,
Port Harcourt


Source: http://www.naijarex.com/2016/05/21/subsidy-removal-and-fuel-price-hike-nigerias-stand/

seen

Nigerians want miracle without sacrifice... Nigeria will be great,let's have faith in PmB... He cares for our future... Most corrupt leader in Nigeria history is gej... He cause most of the problem we are facing now... Wailers can condemn me,bt truth just been told

Lytech:
Nigerians want miracle without sacrifice...
Nigeria will be great,let's have faith in PmB...
He cares for our future...
Most corrupt leader in Nigeria history is gej...
He cause most of the problem we are facing now...
Wailers can condemn me,bt truth just been told

what sacrifice are we actually making, how long and what are we to expect ane wen are we expecting it....

Lytech:
Nigerians want miracle without sacrifice...
Nigeria will be great,let's have faith in PmB...
He cares for our future...
Most corrupt leader in Nigeria history is gej...
He cause most of the problem we are facing now...
Wailers can condemn me,bt truth just been told

abi!! Jonathan made it impossible for fatima to carry belle.. this Jona eh!!!