VillageTownCrier founder, Osayimwen Osahon George is predicting the nationwide industrial strike action
as scheduled for Wednesday, the 18th of May, 2016 by the Nigeria Labour
Congress in protest against the removal of the fuel subsidy by the Federal
Government may end up being a mere holiday for workers across Nigeria. It
should be noted that there is currently a 60% increment in fuel price
specifically from N86.50 to a whooping sum of N145 per litre.
This argument is being made
on the basis of the factors listed below:
(1) President Muhammadu
Buhari's popularity among Nigerians:
Former president Goodluck
Ebele Jonathan's attempt to remove the fuel subsidy on the 1st of January, 2012
failed due to lack of public support and trust. Nigerians invariably presumed
the public officials would be having larger funds to loot. Buhari's
anti-corruption fight which has gained recognition in the international
community and led to the recovery of a sum of N600 billion coupled with the
arrests of notable Nigerians who served in the previous administration by one
of the country's anti-graft agencies, Economic and Financial Crimes Commission,
EFCC. These have increased the faith of Nigerians in government which is deemed
to reflect positively on the removal of fuel subsidy.
(2) The exposure of the
ills behind fuel subsidy in Nigeria:
The aim of subsidy anywhere
in the world is to cater for the interests of the common people. The issue of
fuel subsidy in Nigeria has created a safe haven for 'legal corruption' in by
powerful figures known as the 'Oil Cabal'.
In the year 2011, a sum of
N245 billion was budgeted for payment of fuel subsidy by the Goodluck Ebele
Jonathan administration which at the end of the year gulped a payment of N2.6
trillion. This high-level robbery has gone unanswered till date in a 55-year
old country that claims to have a working constitution and judiciary.
According to the startling
details of the highly classified letter leakage between Minister of Transport,
Rotimi Chibuike Amaechi and the Emir of Kano, Muhammadu Sanusi II, a huge
amount of crude oil worth $7 billion was stolen yearly by organized 'oil rats'
as exposed by a delegation from the United States of America government.
Authoritative reports from
the Minister of State for Petroleum, Ibe Kachikwu also have it that some
unscrupulous oil marketers have been illegally diverting 30% of fuel to
neighbouring countries including Cameroon and Chad after securing subsidy from
government for the purpose of selling at cut-throat prices. 400 trucks of
Nigerian National Petroleum Corporation, NNPC were reportedly sent to Lagos but
investigations revealed that only 250 trucks were delivered while 150 trucks
were diverted for obnoxious interests.
Unconfirmed reports also have
it that oil marketers have been selling the dollars obtained from the Central
Bank of Nigeria under the guise of fuel importation at the black market for the
purpose of making indiscriminate profits without importing fuel. The dollars
are obtained the official rate of N197 from the apex bank and sold at parallel
market at the rate of N320 or above.
In summary, Nigerians desire
to have the loopholes of fraud in the oil sector finally plugged by the removal
of the fuel subsidy and the liberalization of the oil market.
(3) The economic condition
of the country doesn't favour the fuel subsidy:
Nigeria operates a
monocultural economy that relies heavily on the exportation of crude oil in the
generation of 95% of the country's foreign exchange earnings. Following the
fall in oil prices in the international market, the country has witnessed an
over 60% sharp drop in foreign earnings. The oil earnings of Nigeria sits at a
depleted value of $550 billion in a month since April, 2016 and the government
expends a sum of $225 billion in the importation of fuel. There is the wild
scare of a negative economic effect on the already depleted Federation Account
from which funds are distributed among the federal, state and local governments
if the government attempts to increase its 50% quota in the importation of fuel
for equitable distribution in the country.
With funds generated from the
deregulation of the downstream oil sector, the current four refineries in
Warri, Port Harcourt and Kaduna can be maintained to full capacity and new ones
could be built as promised by government coupled with the emergence of private
refineries which will encourage healthy competition in the oil sector towards
efficiency. The prowess of social media in Nigeria has sensitized the general
public on the major agenda behind the removal which will affect the public
support of the strike action and subsequent protests.
(4) Nigerians are more
concerned about the availability of fuel rather than price:
In the last two months of the
biting crisis of fuel scarcity, Nigerians have bought fuel for hyper-inflated
prices ranging from N200 per litre upwards. The cheapest price currently at the
black market is N150 per litre which a highly competitive demand. This has also
had a direct effect on the prices of goods and services.
Unconsciously, Nigerians have
gotten accustomed to the emergency prices and are only interested in the
availability of fuel especially the business owners who need to stay in
operation against all odds.
The phobia of Nigerians for
the endless queues at petrol stations led to the growth of the black market
that became highly lucrative. This will affect the objectives of the NLC and
TUC as they mayn't get the required 100% dedication from the general public as
enjoyed in the famous 2012 protest for the same cause. A strong example is the
news that the National Association of Aircraft Pilots and Engineers (NAAPE)
have backed out of the scheduled strike due to its support for the Federal
Government on the removal of fuel subsidy.
(5) The historical
antecedence of the NLC and TUC:
The last struggle between the
Federal Government and opposing bodies like the Nigeria Labour Congress, civil
societies (Occupy Nigeria), Trade Union Congress on the fuel subsidy in 2012
during the Goodluck Ebele Jonathan administration left a couple of questions
unanswered. The people who spent days at the MKO Abiola garden in Lagos state
including other bodies at several locations in Nigeria felt betrayed by the
labour union's inability to push for an outright reversal of the fuel price
from N141 to the initial N65 as agreed. The consensus reached with the Federal
Government left the price at N97 per litre which yielded issues of distrust in
the system.
Some concerned Nigerians are
currently trending short articles on social media to sensitize Nigerians
against the proposed strike action of the NLC and TUC. Nigerians are suggesting
that the leadership of the NLC through its Cooperative Societies should venture
into fuel importation since it’s an open market and sell to its members at
lower rates just as it has been selling lands, cars, electronics etc through
the same body at various government institutions.
In conclusion, I strongly
believe Nigerians are ready to face their worst fears concerning the removal of
the fuel subsidy. This is the only way to halt the protracted debates renting
the media space for years now. These are hard times that warrant hard decisions
before Nigeria becomes Greece.
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