TITLE: FUEL SUBSIDY SHOULD BE REMOVED IN NIGERIA.
AUTHOR: IBRAHIM OLADEJO, UNIVERSITY OF IBADAN.
The politics of fuel subsidy removal has showed that Nigeria is a country of paradox. How can citizens of the major oil producing country in Africa pay more for fuel which is found in abundance in the country? Studies have shown that successive Nigerian governments collaborate with natural resource extraction companies to exploit their own people. This explains why despite the contribution of oil to the Nigeria’s economy, over 60% of citizenry live in abject poverty occasioned by high unemployment rates, poor infrastructural facilities and widespread insecurity. These are the evidential causes of protest and strike actions that usually accompanied fuel subsidy removal in Nigeria.
Overtime, there have being contending arguments on the merits and demerits of fuel subsidy increases or removal. The protagonists argued that fuel subsidy removal was a step in the right direction and in the interest of Nigerians.
The antagonists of the fuel subsidy removal present a contrary view, presenting the cases of some countries that are said to be enjoying fuel subsidy. Among them are Libya, Egypt and Venezuela. In the case of Libya, the pump price of petrol is about N16 per litre, with the global price being N156 per litre. This means a subsidy of N140 is given if the fuel is imported. Yet Libya was the country with the highest human development index in Africa without an external debt. Also, Egypt, despite being a non-oil producing country, has its’ pump price at N47 per litre with great socioeconomic packages. Now, the third country under analysis is Venezuela which has the lowest pump price in the world. It is about N5 per litre, subsidizing for about N151 per litre. Despite this, Venezuelans enjoy free education up to the university level, free residential health services and lots more.
From the foregoing, the three analyzed countries above enjoy subsidy. Now, if these countries claim their enjoyment of fuel subsidy, can we also claim this in Nigeria? Indeed, the answer is NO. Even if our political leaders want to answer ‘yes’, the common man who is unemployed, the one whose family members are dying as a result of poor medical services and insecurity and investors who have been greatly affected by the bad electric power supply will hold their throats for that. This is on the basis of our level of human development index.
Generally, Nigeria shouldn’t have been this bad because she pays less subsidy of (N91) compared to the three countries mentioned above, but it seems we have a special problem different from others. We always have what is called “the Nigerian factor” in everything we do. This is the reasons why policies used successfully elsewhere do not always work here. This is due to our act of selfishness. It is as a result of this that subsidy which is supposed to help solve our problems only subsidizes corruption.
It is in lieu of the aforementioned facts that I support the removal of fuel subsidy. Let’s face the reality and give room for competition in the oil sector and break the monopoly of the NNPC.
