Why Tinubu Should Adopt Abacha’s PTF Policy -By Ibrahim Mustapha Pambegua

It is not understatement to say, since the unceremonious removal of petroleum subsidy by president Ahmed Bola Tinubu, precisely two months ago, Nigerians have been groaning in suffering. The transportation fares have jumped up and foods inflation hit 22.7 percent thereby negatively affecting the low income earners. President Tinubu in his second National broadcast blow his own trumpet and confidently stated that, within the period of two months of Subsidy removal,1trillion naira was saved which could have squandered by petroleum smugglers. While the huge amount of monies said to have been generated and saved exposed how the nation was financial raped by subsidy cartels in the past, Nigerians have picked holes on the rush with which government removed the subsidy without developing programs and policies to ameliorate or cushion the likely negative consequences of the withdrawal. The decision of government to brow $800,000 from world Bank and plan to dole out 8000 as palliatives to 12millions Nigerians in the next six months has received a knock from policy experts. Little wonder, the cash transfer palliatives was temporary suspended to provide room for comprehensive review.

The Nigerian Labour Congress (NLC) and Trade Union Organization (TUC) had held a meeting with government representatives to negotiate workers new minimum wage. But the last meeting had ended in deadline and the union has opted for protest which kicked started on Wednesday,2nd August across the country. There is likely a strike unless government bargains with labour. With the senate approved 500billions for palliatives and president Tinubu plans to invest in Agriculture and youths entrepreneurship, the Abacha PTF policy comes to my mind. On Oct 2,1994 the Abacha military government increased fuel price from #3.25k to #15 . The removal of Subsidy sparked up public outcry. Public rolled out a series of protests. As an appeasement measure, Abacha set up the Petroleum Trust Fund (PTF) as an intervention development agency to bring succor to the people especially in the rural areas. He made Buhari the executive chairman of the Fund which he ran for five years (1994-1999).

The Petroleum Trust Fund was to intervene in such areas as roads and waterways, supply of educational materials, rehabilitation of educational infrastructure, food supply, health, water supply, etc..During the Abacha administration, Nigerians witnessed tangible and remarkable improvements in infrastructure, roads, hospitals, schools, water supply and other critical areas of social services. The defunct Petroleum Trust Fund, PTF remains a reference point of how to make subsidy withdrawal work to the people’s advantage. The Tinubu’s administration should brow a leaf from Abacha PTF success story and adopt his template. The Subsidy policies implemented by Abacha military government had significantly improved the living condition of many rural dwellers. Unfortunately, the success story of PTF was killed merely on sentiments because former President Obasanjo couldn’t afford to see any Abacha legacy survive, no matter how beneficial it was to Nigerians. President Tinubu should copy the Abacha PTF policy for far reaching and desired outcomes.

Ibrahim Mustapha Pambegua, Kaduna state. 08169056963.