Nigeria, subsidizing imported fuel price; whose gain?

The Federal government in a quest to reduce the burden on the masses of the price of imported petroleum has been paying for a certain percentage of the actual imported price.

According to the Minister of Petroleum at the public hearing of the Senate Joint Committees on Appropriation, the country spent the sum of N600bn to fund petroleum subsidy in 2010 while the amount skyrocketed to N1.3trillion between January and October 2011. This she said the federal government cannot continue to sustain the subsidy with her present economic status.

The question: why the 200 per cent increase within ten months of 2011 over that of 2010?

The Federal Government and the Federal Executive Council only give the excuse that a small percentage of the Nigerians; the marketers, the middle and upper-class Nigerians are the only one benefiting from the amount meant for subsidizing the price of imported fuels. Can’t the marketers be brought under control or they are too big for our government to deal with?

More Nigerians will benefit if the federal government no longer bear the cost of subsidy is the tune being played by the Federal Government. Another question: what did the so called Nigerians get as benefit from the subsidy  removed from diesel years back? Promises! Promises!! Promises!!!

The Interim Report on the Process and Forensic Review of NNPC by KPMG revealed that an estimation of N2bn, N10.3bn and N16.2bn was used in funding petroleum subsidy in the year 2007, 2008 and 2009 respectively. A sensible Nigerian would have asked the federal government, FEC and the national assembly why the price increased from N2b in 2007 to N10.3bn the following year, amounting to times five when the population of Nigerians has not even double.

The FG funded petroleum subsidy with N600bn in 2010 from N16.2bn in 2009. Are you noting what is jotting?

It is clear to you and I that the management of the so called petroleum subsidy is a fraught regime wasting our resources.

N1.3tr used in funding subsidy in the first ten months of 2011; from 2007’s N2bn to 2011’s N1.3bn, according to this, the population of Nigerians should be around 2600 multiplied by 140million and this gives 364billion.

You might want to ask if Nigerian government is subsidizing petroleum product price for the one third of the universe, that’s part of the questions that our leaders couldn’t provide answers for during the public hearing by the Senate Joint Committees on Appropriation, Finance and Petroleum Resources.

Continuity of the funding of the subsidy, our government said is not sustainable; “Nigerians can’t continue to pay cabals” excerpts from words of the FEC members. “Who are the cabals” you may want to ask and yet our government can’t come out and tell us the names of the cabals that they have been paying the subsidy money for.

‘Stop the fuel subsidy’ Yes! But why should we trust our leaders again when all we are going to get as compensations is going to be already failed promises, promises and promises.

Our government, if they are not part of those sipping the ‘sweet pap’ of the subsidy should be able to come up with plans and ways to reduce these wastages to their so called ‘cabals’, and now the present administration is ready to force down the sour taste of subsidy pap down the throats of Nigerian masses.

The removal of petrol subsidy, a New Year’s gift from the presidency, giving the assertion that it will have little effect on the poor and yet the prices of food and other household commodities has been doubled compared to December 2011, with some Nigerians stranded in their home towns as a result of increased in transportation fare which is more than times two or three in most cases.

SME will be grossly affected as most of them survive on personally generated power from generator set which use PMS as its main fuel. What about the beneficiary of the YouWiN initiative of the federal government, won’t they fuel their generators when power supplied by PHCN is but only an opportunity and not a right.

“Our country is broke” said the president; I wonder what will happen to the nation’s economy when the SMEs that create jobs are wiped out of existence as a result of high cost of running business when the price of petrol is more than doubled.

‘yinka ‘sanya


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