LET SUBSIDY REMOVAL BE!

This subject matter reminds me of one of the proven axioms of most economists which sets them too easy that when the storm is long past, the ocean returns to its normal shape again for the better. When the move commenced for the gradual deregulation of sectors of the Nigerian economy, many people made a sense of it as another government gimmick and plan to stifle the social progress of citizens. Worst still was the fact that petroleum, for which our country is a prominent resource owner, is listed as a critical sector to be affected. The arguments against it then, appeared understandable given the abiding  penchant for our leaders to fail promises for positive change and transformation. They simply under delivered and we have always ended up not achieving the set goals. But holistically, the trend of deregulation is a worldwide movement  that has a profound positive implication in the medium to long-term goals, as it provides ways of reducing the level of risk exposure of any economy (especially the developing economies), and the volatility of economic financial conditions.  

Today, no doubt that the administration of President GEJ has taken a very bold and courageous decision in removing the subsidy on fuel with the conviction and courage to transform Nigeria based on a process that promises paradigm shift in critical sector like agriculture, aviation, education, power and  the petroleum industry. It is absolutely inconceivable that a nation spends more than 30% of her national income to subsidize a single item in not less than three decades without any conspicuous economic benefit. This is especially when there are other vital and equally compelling need for intervention in other sectors that can rationally add more value to national productivity in particular and economic growth and development in general. Unfortunately, and so largely, combinations of factors have conspired to demonize and define subsidy removal in our lexicon to mean evil and war against the poor even when it is so glaring that the opposite is the case. Despite the synchronicity, the antagonists posit that the government is at war with its people, and this leaves some of us ponder whether or not to join the fray because bashing government now appears to be a ticket to recognition, popularity and media attention even where the issues involved are in the overall interest of every citizen.
 
A society’s well-being depends on ensuring that all its members feel that they have a stake in it (and not only a cabal) and do not feel excluded from the mainstream of society. This requires all groups, but particularly the most vulnerable, have opportunities to improve or maintain their well-being, and this is exactly what the fuel subsidy removal is aimed at achieving in the long run.
 
A situation where the money we spend on subsidy in a year exceed more than what spend on capital projects is certainly retrogressive and this is why the full-fledged removal of subsidy is of great essence. The subsidy has been a misallocation of resources as it was being hijacked by powerful interests by buying the fuel, round-tripping and sending it to neighboring countries for selfish gains. This meant that the subsidy has not been well targeted and it is therefore in the best interest of the country that this subsidy must go forever. The transformation agenda of the present administration of President GEJ is a perspective world view of our past, present state and desire for progress. Therefore, it should be our general and specific interests. Those who argue against it have children who represent the future. They also neither need unsustainable platform to reform their situation because no one cleans our mess nor would anyone theirs, at night. Thought Nigerians may suffer tough economic times temporally in the short-term view, the GEJ administration is determined to bringing everlasting reliefs in the medium to long term to families and small businesses that may face additional hardship by ending the largest of unwarranted and very costly subsidy, and reduce the deficit.

While those involved in the shady importation deals would be prosecuted, we must appreciate the fact that the fundamental objective of the state principle as espoused in the 1999 constitution is the welfare and security of the citizens, and not about catching economics rogues (solely). By all means possible, we must fight corruption but we must also realize that anti-corruption is just a means. The ultimate end is development.

It must therefore, be appreciated by all that the fuel subsidy removal is also aimed at bringing the concept of development economics which is economics of production, value addition, reindustrialization (growing the real sector), job creation and pulling the bottom millions of Nigerians out of the prevailing poverty in the land. Nigerian’s economic crisis is crisis of production characterized by collapse of small and medium, as well as large enterprises, idle and under-capacity utilization, unemployment, high production cost and un-competitive products prices. It will be of massive positive implication if the subsidy funds are applied properly in the above areas of our economy with a view to revamping them, hence one of the critical success factors for development and growth is financing. I therefore, term the subsidy funds as ‘‘our future intervention funds’’ that will assist in bringing development and succor to the downtrodden which is a win-win affair. I have no doubt that the impact of the subsidy removal will be positive as the accrued intervention funds will be efficiently applied considering the personage of the members of the reinvestment committee.

In this millennium, things are moving so fast that we either recognize and be part of it or face the tragedy of not knowing when change is happening. All of us must play our role because doing so will shape the outcome of our actions and inactions. Thank God that PGEJ administration has moved to liberalize the rules limiting future expansion in the oil sector into new market opportunities which will allow more private market participation to bubble and this will in turn, benefit the Nigerian public rather than government dictum to play a far greater role in shaping the services and performance of the sector. There is need for us to recognize that the transformation of the oil sector is not an anti-people policy but simply and clearly a transition from short-term to long-term planning for bountiful harvest in the nearest future. It is a call to moderation and precaution, a call to job creation, economic prosperity and inward search for things that will and can sustain our collective welfare and wellbeing.

It is imperative that we get our future re-focused but no chance at all to restore lost lives and destroyed value in a dynamic world, else, we will all more often than not, trudge behind searching for answer in a changed destination. Basically, this must not be our portion and we must not be prepared to claim it. I hereby call on organized labour to understand with the government over the seemingly painful decision and do well to rescind on their decision to embark on a nationwide strike. However, we understand that a cocktail of factors are attributable to the negative view or connotation of the phrase ``removal of oil subsidy’’. These includes inadequate information in the public domain on the subject, unwitting conspiracy of opponents, previous experiences which have led to distrust and the consistent failure of previous government to implement and abide by its rules, procedures, guidelines and laws.

Without a doubt, the subsidy removal by the PGEJ administration has potential gains as well as risk reduction because of the intended intelligent decisions making and economical use of available resources henceforth, especially with the setting up of a committee that will prudently reinvest the flying funds in critical infrastructure. All these put together ensures social responsibility, promotion of a level playing field for more private participation, more job creation and convergence of more valued and unprecedented services. It will also erase crimes like diversion of products fraud, embezzlement of funds and outright theft. Nigerian must know that deregulation is a broader issue that creates a necessity for a more regulatory cooperation with a view to ensuring harmonization so that firms/organizations entrusted with providing public services would no longer find refuge even from minimum level of scrutiny and this will ensure respect for the law in business/services dealings. It is also important in a nation that is increasingly threatened by terrorism which is perceived to be financed and encouraged by powerful individuals or organization in some corners of the nation. 

It is true that democracy gives every individual the right to agitate and to also perhaps be his own oppressor, it is an issue of prosperity that we collectively give this present administration the support it deserves, as the removal of subsidy on fuel is in the best interest of all Nigerians. Let us allow our government, for once to be a device for maintaining in perpetuity, the rights of the Nigerian people, with the ultimate extinction of the wicked privileged classes.

LET THE SUBSIDY REMOVAL REGIME BE!
 
 Andrew Ehigiator is Public Relations Officer, Niger Delta Integrity Group.