The recent abrupt and poorly executed increase in fuel prices in Nigeria has left many citizens devastated. The government has justified this hike by linking it to the removal of fuel subsidies. While I have previously supported the idea of removing subsidies, I find it hard to believe that the recent price increase is genuinely related to subsidy removal, as some have claimed.

President Buhari’s administration employed a similar tactic during his tenure, increasing fuel prices in 2016 under the pretext of subsidy removal. However, it was later revealed that the government had actually spent over N11 trillion on fuel subsidies during those eight years. This history raises concerns about the recent development and its resemblance to previous fuel price increases.

True subsidy removal would entail full deregulation of the downstream sector, according to widely accepted definitions. Yet, the recent price hike does not align with the principles of market forces. The Nigerian National Petroleum Corporation (NNPC), as the sole importer of fuel, sets the pricing template that affects all filling stations nationwide. This centralized control contradicts the notion of market-driven fuel prices.

Therefore, it is crucial for the new administration to provide clarity on the subsidy issue. Nigerian citizens should not be subjected to the pains caused by the recent price hike, only to later discover that subsidies are still being paid, as was the case under the previous administration. If the current government is genuinely committed to subsidy removal, it must take the necessary steps to open up the sector, promote competition, and allow market forces to determine fuel prices, rather than relying on a single importer like the NNPC.

Additionally, the government must outline its plans for investing the funds that will be saved from the subsidy regime. This should include implementing measures to mitigate the impact on the people, similar to what the Goodluck Jonathan administration did in 2012 when subsidy removal was considered. Furthermore, it is essential for the government to be transparent about where the funds that were supposed to go into fuel subsidies will be allocated. It would be unacceptable for Nigerian citizens to endure the hardships of subsidy removal only to have the saved funds end up in private pockets.

Over the years, subsidies have consumed more than N20 trillion, a staggering amount that could have been used to improve healthcare, education, infrastructure, and other critical areas. While it is clear that subsidies have outlived their usefulness, they should not be used as a tool to deceive Nigerian citizens, as has happened in the past.

In conclusion, the government needs to act transparently and responsibly regarding fuel subsidies. The removal of subsidies should be accompanied by true deregulation, promoting market forces and competition. The saved funds must be invested wisely and not fall into the wrong hands. Nigerian citizens deserve a fair and accountable approach that brings tangible benefits to their lives, rather than continuing the mistakes of the past.

Oke Umurhohwo writes from Ughelli, Delta State.

solmusdesigns:
What will you do if you were Tinubu

No budget for subsidy and budgets ends June without new supliments

AnonPoet:


https://leaders.ng/2023/05/31/fuel-subsidy-a-play-on-nigerian-citizens-by-oke-umurhohwo/

Adjovi:
On your mandate we shall stand ;Don your mandate we shall trek



If you like as Omo Yoruba no ronu o

Innobee99:
The joy is that both Batists and Obidients are feeling the heat.


I heard a robot was devised to detect Batists to enable them buy at the rate of N80 per litre

AnonPoet:


https://leaders.ng/2023/05/31/fuel-subsidy-a-play-on-nigerian-citizens-by-oke-umurhohwo/

onuman:


On his mandate they standstill. Standstill with the man they were seeing always unable to complete a sentence without blurred speech, a man they saw that he could hardly walk without aides waiting to grab him because he would trip.

They thought they were on Yoruba versus Igbo struggle. Even though saner Yorubas were telling them that Tinubu is not the right candidate; they still sang on your mandate.

orikoku:
Na real play. Marketers don mugu us too much. Subsidy must go.

Ifyz0001:
He would have waited for June to come to an end first. And maybe dangote refinery should be producing fuel by then. He should have opened the borders first to get cheaper products first.

Now, no palliatives no nothing. He hasn't even worked on food supplies, transportation, nothing been done...in my area transportation cost has tripled over night.

I don't know what Tinubu is still doing the Emefiele till now, cos that man's policies crippled the economy.

Nigerians, we like suffering ourselves too much, a land flowing with milk and honey. But suffering is a middle name.

Omoawoke:


We are tired of “he should have”

Same thing they said against Jonathan, fuel was supposed to sell for 145naira per liter.
Everybody came up with “he should have”
Ten years later, same subsidy remain a scam and problem and fuel was selling for 185 naira

Enough is enough of subsidy Wahala, it should go and let the worst happen

Ifyz0001:
He would have waited for June to come to an end first. And maybe dangote refinery should be producing fuel by then. He should have opened the borders first to get cheaper products first.

Now, no palliatives no nothing. He hasn't even worked on food supplies, transportation, nothing been done...in my area transportation cost has tripled over night.

I don't know what Tinubu is still doing the Emefiele till now, cos that man's policies crippled the economy.

Nigerians, we like suffering ourselves too much, a land flowing with milk and honey. But suffering is a middle name.