Subsidy Removal And Suffering Nigerians -By Ibrahim Mustapha Pambegua

After many years of subsidy payment which gulped trillions of naira since it was introduced in 2000, the new administration of president Bola Ahmed Tinubu, has finally phased it out. On May 29, after he was sworn in as the 16th president of Nigeria, Tinubu in his inaugural speech stated that, “Subsidy is gone”. The speech which indicated the policy direction of his administration on subsidy payment sparked panic in the country. Petroleum marketers hurriedly adjusted the pump price of petroleum. The NNPCL released its template ranges between #480 and #550 which sealed the fate of subsidy payment. The last administration of former president, Muhammadu Buhari, set June this year as the deadline for subsidy removal. The former minister of finance, Zainab Ahmed Shamsuna,stated that, government had only made provision for the payment of subsidy from January to June 2023. Little wonder, nigerians were not surprised with president Bola Tinubu’s inauguration gift. What bother many nigerians is the timing of the removal which they consider as wrong. Ordinarily, the government should have waited until the end of June, which the subsidy fizzled out.

Since the removal of petroleum subsidy penultimate last week, nigerians have been groaning in hardship. The transportation fares have jumped to 300% . Fears have also griped nigerians on the likely hyperinflation in which the price of good and services will skyrocket beyond the reach of the common man. Though, the world Bank approved the whopping sum of $800,000 to be shared to nigerians as palliatives in other to cushion the effects of subsidy removal, it seems, the government has not worked out modalities for the instant payment.

While Buhari administration had resolved to pay #5000 to 10millions nigerians for the period of six months through social register, no one knows if Tinubu administration will agree with this plan. The subsidy removal has also come at a time when civil servants are grappling with inflation and high cost of living in the country. The N30,000 minimum wage is not descent and appears too small to enable civil servants meet up with his responsibilities suche as: buying food, paying rent and settling school fees for their children. Even with the implementation of N30,000 minimum wage, some states governors have not implemented it. One imagines how these frustrating or dejecting states workers can cope up with the present realities. I have never hidden my support on subsidy removal through my numerous published articles. The subsidy scheme is nothing but daylight robery. It has been fraught with corruption. Some highly connected people received the payment of billions for fuel not imported.

Additionally, even with the final burial rite of subsidy payment last week, no nigerian can tell you the àctual daily fuel consumption capacity of the country. The figures released by the NNPC were often suspicious. That was why, trillions of naira ended up in the pocket of fictitious importers. The lack of transference in the management of subsidy payment is what has pushed government to mull the idea of scrapping the scheme. Subsidy payments amounted to trillions forced successive government to incur high public debt. With government spending more than 100% of its revenue for debt services, it has no option than to stop the fraudulent subsidy payments.

President Ahmed Bola Tinubu has taken the bull by the horn by removing the subsidy which his predecessors failed to do. He also promised to channel the resources into infrastructure, health and education. This plan if implemented, would go along ways towards improving the living condition of Nigerias and should be supported.

The challenges Tinubu government will face are: how to roll out the palliatives to Nigerians and how to go about reviewing the current minimum wage to reflect the realities. The organized labour union had a meeting with the government respresentatives last week. The president has restated his commitment and promised to give nigerian a descent salary. This a good assurance! The millions naira question begging for answer is, how soon? The Nigerian Labour Congress (NLC) and Trade Union Congress (TUC) which protect and champion the right of Nigerian workers have directed their members to get ready for strike next week,Wednesday. The purpose of the strike is to force government to reverse to old price. This is to say,strike is looming in the country. But will government vow to labour’s pressure and maintain the status quo? The labour threat like it’s previous ones, will be resolved through negotiation.

No doubt, transportation sector has been seriously hit by the subsidy removal. Many Commuters have to suspend their journey due to the astronomical raise of fares. For meantime, the government should purchase and flood the country with buses to cushion difficulties commuters experience. There is the need for government to, in the long run, continue with its train services and expand it where necessary. These buses and trains will provide cheap and affordable transportation services to Nigerians. The NNPCL Managing Director, Mele Kyari, should match his words with actions. Kyari, recently stated two of the fours refineries will be fixed this year to provide enough fuel for national consumption.

Furthermore, another one will be revived next year, while the fourth one is expected to be repaired in 2025. Indeed, this is a cheering news. With Dangote new refinery couple with four functional national refineries, Nigerians will have caused to smile very soon.

Ibrahim Mustapha Pambegua, Kaduna state. 08169056963.