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Notes From Atlanta

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Saturday, September 12, 2020
Let’s Talk About the Subsidies for the Rich

By Farooq A. Kperogi
Twitter: @farooqkperogi

The poor in Nigeria are continually stripped of subsidies that subside the existential hurt that comes with living in the poverty capital of the world. Petrol subsidies are particularly enduring emotional blackmail weapons against the poor by people in government.

Since 1970 when Yakubu Gowon increased the pump price of petrol from 6 kobo to 8.45 kobo, subsequent Nigerian governments have always insisted that subsidies are unsustainable and must be removed for the “benefit” of the people it helps!


Just when you think they have finally removed the last “subsidies” and would now grant the masses freedom from the emotional blackmail of being told that they are undeserving beneficiaries of government’s unjustifiable benevolence, they tell us again that they need to remove what they had told us they'd removed. They interminably guilt-trip an already distraught and beleaguered population.

But, as I did four years ago, it’s time we changed the conversation. Let’s turn our gaze to the walloping subsidies that pay for the hedonism of Nigeria’s notoriously self-indulgent elite, shall we?

While Buhari said “no kobo” of Nigeria’s foreign reserves would be used to import food and fertilizers for the country in spite of food shortages that have necessitated Nigeria begging for maize from its neighbors, he and his family members routinely go abroad for medical treatment for their littlest ailments and use the planes in the presidential fleet for even non-official domestic and international travels.

The presidential air fleet needlessly and avoidably drains Nigeria’s national resources. According to a November 17, 2015 statement from the presidency, there were 10 aircraft in the presidential fleet, which cost more than 2 billion naira to maintain in just 6 months.

After public outcry in 2016, which I helped to amplify, the presidency said it had put two of the 10 presidential jets on sale to "cut down on waste." It turned out, as I correctly guessed then, that it was all a subterfuge. No jet was sold.

The British Prime Minister had no dedicated fleet of aircraft until 2016 when a plane was purchased for the Prime Minister (and “other ministers and senior members of the royal family when they travel on official engagements”) at the cost of $15 million. That’s about how much it cost to maintain Nigeria’s presidential fleet between May and November in 2016, according to the presidency.

Hundreds of billions are allocated every year to finance the feeding, travels, medical bills, brand new cars, and even sewage disposal of people in the presidency.

Now compare this to America, the world’s wealthiest nation. American presidents pay for their own food from their pocket. As Gary Walters, a former White House Chief of Staff, told the (London) Guardian, “All those things that are personal in nature that we all pay for, the first family pays for.”

“It’s just the tradition that it’s continued on through time that the president will pay for their own food and, I guess, if they needed something for the house that was personal. Toothpaste, cologne or whatever,” William Bushong, a White House historian, told the Guardian.

Wife of President Ronald Reagan was shocked when she discovered that she and her husband had to pay for all their personal needs. “Nobody had told us that the president and his wife are charged for every meal, as well as for such incidentals as dry cleaning, toothpaste and other toiletries,” she was reported to have said in 1981, according to the Guardian.

If the world’s wealthiest country doesn’t subsidize the personal expenditures of its first families, why do Nigerian budgets earmark billions for the convenience of the first family but talk of “sacrifice” and being “broke” when it comes to giving subsidies to the poor?

The Presidency isn’t the only usurper of subsidies, of course. The crooked, ineffectual, and rubber-stamp National Assembly routinely allocates billions of naira to itself for renovations, wardrobe allowances, and even what it calls “hazard allowances”!

State governments also spend billions every year to buy brand new cars and other objects usurious vanity for governors, deputy governors, commissioners, and state houses of assembly members.

Nigeria’s subsidy regime is a classic case of taking coals to Newcastle, that is, giving assistance to people who don't need it and depriving it of people who desperately need it to survive.

As I pointed out more than four years ago, in Nigeria, there is a concentric circle of privilege and subsidy regimes. At the core of this circle are elected and appointed government officials—the president, vice president, ministers, numberless coterie of aides and hangers-on, and so on; members of the National Assembly and their aides; governors, their deputies, commissioners, members of state legislatures, etc.; and local council officials.

At the second layer of the circle are a whole host of private sector intermediaries, including fuel subsidy scammers nicely known as fuel importers, who act in cahoots with key elements (or their representatives) in the core circle to swindle the nation to pay for their privileges.

The next layer is composed of middle-class elements of various stripes who are reasonably buffered from the blows of the political and intermediary classes and whose sympathies vacillate between the oppressors and the oppressed depending on their mood.

At the peripheral layer of the circle are the masses, the great unwashed, who perpetually writhe in the misery inflicted upon them by people in the first two layers of the circle.

People in the first two layers of the circle have historically been jealously protective of their subsidies. They consume a disproportionate percentage of Nigeria’s resources, and leave only the remnants to people at the lower end of the circle.

When you hear “Nigeria is broke,” it usually means the subsidies that finance the inordinately lavish lifestyles of people at the core of the concentric circle of subsidy regime are financially threatened. It means, in essence, that remnants that keep the masses in check in the form of salaries are drying up, which might instigate a revolt.

So what to do? They tax the poor to pay the poor. They rip them off to fund the remnants that keep them in check! That’s why only the poor are called upon to “sacrifice” in moments of economic distress, and why they are perpetually told “subsidies” must be removed from them.

The truth, of course, is that if the toads ensconced in the inner sanctum of the concentric circle of subsidy regime give up just a little bit of their privileges, there would be no need for the steep fuel price increase being rammed down the throats of people already condemned to the margins of society.

If members of the Nigeria political class are serious about “sacrificing,” in light of the fact that the country is “broke,” they should first give up their own “subsidies.”

It was Mahatma Gandhi who once said, “The world has enough for everyone's need, but not enough for everyone's greed.” Nigeria has enough for everyone’s need but not enough for the political elites’ greed.

https://www.farooqkperogi.com/2020/09/lets-talk-about-subsidies-for-rich.html?m=1

Jaxxcode:
Choi..Nairaland ehn.. Somebody can not know too much again?.. oyah investigate dis person for your house nah..

Such a defeating statement. He knows too much, what he gonna do? some people really believe their limit is the zenith.

obailala:
First of all, no reasonable person takes those kind of campaign statements done prior to elections seriously.

Secondly, Buhari never made that $1 to N1 promise, that was nonsense sensationalism by political reporters taken too far. Also Buhari never said anything about making petrol N40, that was a statement made by an individual called Tam David West.

Diversification of an economy away from a mono product like oil isnt something you achieve in a day; it takes
1. A lot of time
2. A lot of money
3. A clear economic vision /direction
4. Hard political inexpedient decisions (e.g. removal of fuel subsidies, electric subsidies, crashing the Naira massively)

You cant blame the govt for Nos. 1 & 2 as those are somewhat beyond their control. But obviously, the govt has failed woefully in No.3 and 4. Probably with the current IMF strangulation, the govt would finally have to follow the politically inconvenient pathways of No.4.

I heard you.

obailala:
Buhari may be worst in many areas, but are you aware that despite oil selling averagely above $100 in his tenure and the govt receiving almost 3-4 times more revenue than any other administration, GEJ's government in 5 years borrowed just about the same amount of money which Buhari has borrowed in 5 years?... I'd be damned if you know this cos 99% of Nigerians dont. We live and analyse data purely on sensational and political headlines.

If Nigeria couldn't survive without borrowing when oil was $100, then why exactly is anyone surprised that we have to borrow now that oil sells for $30-40?

Oil price is down, country's revenue is down, Nigerians dont want to be taxed, Nigerians dont want fuel subsidy to be removed, Nigerians dont want electricity subsidy to be removed, Nigerians dont want educational subsidies to be removed, Nigerians dont want roads to be tolled, and we dont also want govt to borrow? Are we sure we arent a confused Nation? Maybe it's truly Buhari's fault, he should miraculously mint money.

Lol, So he can't miraculously mint money? So what's is in his head when he said #1 will equal $1?, or you didn't heard when he said PMS would be sold at #50. you people keep shouting oil price drop per barrel. What of countries without oil? I would have advice us to look into Agriculture for solace. I know it's still gonna fall on the government deaf hear. Much have been said about how the economy can be revive, but people like u won't let it work. because, you won't let baba reason, he have you to wave off any complaint or suggestions, albiet.

SeanBeezy:
If you're actually having doubts about telling him then he isn't really your friend!

Yes they ain't friend in anyway.

maasoap:
Who block the roads against emergency services during elections and where? We do watch protests in abroad now.

Road blocks in Nigeria is nothing new, even highways got blocked on Friday afternoon. during the last mega protest against the same fuel subsidy buhaha, hope no road was block then?

Lazykulture:
I swear. In this people carry religion for their head like no tommorrow. The moment u start to question the existence of god, u hear different things. It's either u will perish in the lake of hell fire or u die a shameful death.

blackmailing by threatening.

Skepticus:
One of the fearful cowards that kperogi is talking about.

No worry, dat God will come and save u from Buhari when a litre of fuel turn 500 naira.

seriously, he lay credence to what the Prof is saying. He have started condemning people, but never the anti-people policy of the government.

KushLyon:
when he said so back then, many people were angry that why will a president say something like that about the people he is ruling, indeed the truth is bitter. Most people are now comfortable with whatever the government throws at them, their motto is now "we will make more money so we can adapt to the changes"

Comfortable! you didn't used the right word, though I don't have a replacement. all I know is that we are more than Comfortable. I can literally compare us to animals, with no life to live, anything just goes. what are we going to say about those who will started praying in church that if they sell petrol at #500, may me and my family have money to buy and the congregation will scream Amen. truly, we have lost all humanly senses.

maasoap:
Did ever ever thought about Fire trucks responding to emergency? What about ambulances on emergency?When are we going to start doing the right thing in the right way in this country? Protests, yes. But constituting nuisance in the name of protests is total NO.
As you have your right to protest, others have the right not to be part of it and you have no right to block their way.

Lol, but during election campaign, those raod are not blocked abi. pls, if u can't help lift up, don't drag your helpers down. because, you want to be politically correct, maybe?

9jaDoomCountry:
Of course he was right there. 9ja youths are more interested bbnija show or messi/ronaldo comparison .

seriously,they always seek the soft, like landing.

KushLyon:
Many of them don't even know the implication of this hike in electricity tarrif and fuel price, it's mortifying that a lot of people rather discuss who is bleeping who in a reality show than to face the harsh realities of this gangrenous government

I do sometimes agree with baba that said Nigeria youth are lazy, aren't they lazy when they can't fight for thier right?

Ten06:
The only people who are not docile, the others are very (fill the right word)

Naive!

Munachisom95:
I rushed to see massive crowd but finally, I'm disappointed.

If you join, won't it make it 100 from 99.

KushLyon:
Just a handful of youths out there protesting, the others are busy protesting against Erica and kiddwaya on bbnaija

lol, you bleeping right. Sometimes, I wish I was born early during the time of the Felas, Fawehinmi and co. Youth of this days are the dumbest, in the whole universe.

Finnese001:
Lol, buhari have ear problem and he cannot read too

oh I see, but shey, 'people around him ain't tapping him'?

Finnese001:
Who are they talking to

You in government.

maasoap:
They're causing serious traffic hold up, paralysing and grounding economic activities.

To hell with traffic jam and economic activities. That's the problem with us in this country, we can't pause a minute to reflect. Always keep pacing, in the name of moving not progressing. enough said.

GamalNasser:
Abbey bailey quit the lies you never voted for him in 2016

.

GamalNasser:
Abbey bailey quit the lies you never voted for him in 2016

.

SweetCunt97:
I knew he was sick. It was so apparent, so glaring, he didn't need to succinctly say it. He wanted people to simply see him as that strong man who played panther and not a man to be pitied. He knew he had a short time to live actually.

You would have did us well, by informing us about his predicament. Or better still created a tread to celebrate him when he's alive.

Greatzeus:
Okay, I respect everyone decision to worship anything or anyone he or she desires. But what did he say exactly? Did they have a list of words considered blasphemous or who determines what is blasphemous or not.
Please fellows, respect other people's belief,if you don't accept your faith or worship,leave them to their belief. Stop saying trash about other people's religion to avoid stories that touch, especially if you live in the North.

You don't just get it. He's a Muslim.

popsy2:
Brother, the scuffle between them is a pointer to his rebellious nature. He is a ticking time bomb. A deputy governor should know his place in the scheme of things. He is neither an equal nor an equal partner, he is a subordinate. See Buhari and PYO.

You shouldn't have used PYO as a case study, I would rather be an Ajayi to PYO, in politics you fight for yourself, know your self worth, leverage on any giving chance. who told you Aketi will still pick him as his running mate, if he stay put. As at today he is been heard than anytime in all his entire deputising season. he's only replaying what Aketi did to Tinubu camp during primary. It's all politics. moreover, He's the most popular deputy in this dispensation, even trending than shaibu in Edo state. He have tested his strength, and he really know his onion, defeating the governor by surviving his impeachment plan. If it's another deputy you won't even heard his name again. so pls give it to him, he's a man and a fine politician at that.

Thanks for this bro.

This is what I get as reply when I press OK.

Good afternoon, pls how can I view this channels on my TV, with the aid of external digital dish?

ProfAmaben:
Personally, I love tattoos, not the Oshodi or Computer village types, but quality tattoo like those A-list stars own but our society hasn't gotten to that level yet. Therefore, if anyone wants to avoid trouble, it's better to stay clean till you fly outside.

Meanwhile, most guys with tattoos and dreadlocks are bad boys and criminals in Nigeria. I don't know why but statistics seems to be against them. If I'm a police man, once I see you with tattoos and dreadlocks, you would be a suspect because many of them are cultists and criminals. I don't know why but it's the bitter truth.

You still don't get it, like I said above, you don't rule by sheer sentimental, belief, religion or the one you are applying 'guesswork'. have u spotted sheakau of infamous boko-haram on tattoo, Evans the kidnapper on dread. I just thank God u ain't police IGP.

Modify: you said one can get tattoo when he flies outside, I hope he's not coming back again sha?

ProfAmaben:
I know that there's a fundamental problem in this country, but my brother, can I change it?
Africa hasn't gotten to the level of dreadlocks and tattoos without raising suspicion from the police or SARS, that's an indication of a messed up society. I'm just advising guys that it's better to be safe than sorry.

That doesn't warrant you calling me poor or wretched in any way. Not boasting, I made my first million at 17 and I have never been poor all my life in all honesty.

bro that's just the drill, you are fuelling illegality with ur utterance on dreadlocks and tattoo. You said u can't change things but you're aiding police brutality because u feel tattoo and dreadlock is a no-no for you, does that made it a crime? we ought to be bind by the constitution of the land, not by our emotions, sentimental, religion or belief.
I ain't calling you poor, I'm just baffled u belief ur not tattooing or no dreadlock is a saving grace. you ought to see bankers and teachers picked at random.
But why are we quick to labelled tattoo or dreadlocks un-african.(though they have space in our history), but its African for a dark lady to become White over night.
All I known that's African is, is our 'cowardliness'.

ProfAmaben:
Pray you achieve 1/100th of what I've achieved in your lifetime

Achieve!Archive!! Archive!!! bro u never achieved Nada. you believe been rich or wealthy amounted to achievement. when u have no right in your own country. when you can get hit by stray bullet from the people being paid by your tax to secured you. when boko boys could bomb ur church or mosque any moment from now. when you fall sick hospitals aren't well equipped to cater for your health. when elections results are been written by INEC, not the vote u casted. traveled through Ore-Benin expressway, you will need more like Gods grace to escape those kidnappers and robbers, not to talk of those Fulani bandit. even your bank is not secure, with all the machine saying 'welcome to ......bank', is ur police station even secured?
bro, any body who call him or herself achiever in this country is hoodwinking himself. being, achieved have nothing to do with money you have. And if someone have the money and doesn't see any thing bad in this country that ought be to change if not for himself but incoming generation.,(like the lecturers extortions) sorry that man or woman is not only poor but weakling.

ProfAmaben:
Since I was born till today, I have never been arrested or harassed by the police.

You can't have dread and tattoos without drawing attention from sars and the police.

Those saying that tattoos are cool bla bla should know that this is Africa not Europe.

Pray u don't get hit with their stray bullet. maybe, u are poor and wretched. because, I have never saw them harassing a cart pusher.