CAN THE SUBSIDIES REMOVAL BE A GOOD START FOR PBAT PRESIDENCY?

The first argument in PBAT's presidency is the total removal of Petroleum Subsidies.

Already heated debates have started on whether the New President should just announce that in his inaugural speech, meanwhile knowing fully how wicked Nigerians are. 

One day into the Presidency, petroleum Marketers started hoarding the products thereby willingly shutting down their filling Stations to have a chance of price hiking. 

Fuel scarcity is not a new thing in Nigeria, for decades, Nigerians are acquainted with the hardship of fuel scarcity due to excessive and massive corruption in the Petroleum industry.

For years, the only three refineries owned by the government are not functioning properly, which resulted in another corrupt business of importing PMS, AGO and other petroleum products to cushion the lives of the citizens. But the negativity of such activity plunges the Country that happens to be rich in crude oil into uncertainty in the petroleum supply to citizens.

 Fuel subsidies are a form of government intervention to reduce the cost of fuel by providing direct financial support to oil companies, and as such, subsidise the product to consumers (Nigerians). Petroleum pricing is a significant issue in Nigeria, as the country heavily relies on oil for its economic stability. The government had implemented fuel subsidies to keep the price of fuel affordable for citizens, as well as to stimulate economic growth.

The subsidies turns out to be a big scam, as the process was just being seen as a conduit for syphoning billions of dollars in the name of subsidies, thereby enriching some few individuals at the detriment of the majority. 

The President has made it clear in his inaugural speech that, the subsidies have to go for good, and one of the primary advantages of removing the fuel subsidy is that it would free up resources for other sectors of the economy. The government currently spends a significant portion of its budget on fuel subsidies, which could be better spent on education, healthcare, and infrastructure development. The resources meant for infrastructure development are going into some individual coffers that added no value to the economy. Many people believe the removal of the subsidies is necessary and the hardships will be for periods which can be adjusted later. The immediate past administration has from its inception removed partly the funds, but still, the money being paid keeps ballooning to suspicious numbers that made the former president wonder if it's true the money for subsidies is real, anytime there is a move to remove it, a threat will come from some quarters that will compel the government to keep pumping money for that purpose.

Nigerians believe, paying subsidies on petroleum products is corruption and its removal has been a Central discussion point in many political rallies and campaigns from 2011 to date, the recent National election of 2023 has also been discussed where all the Presidential Candidates promised to do away with the subsidies if elected. Therefore, the pronouncement of President Bola Ahmed Tinubu GCFR in his inaugural speech was a promise fulfilment, but a difficult start for a new administration that needs to be trusted by Nigerians. 

Nigerians must be ready for another round of showdown in the name of Us versus them, the trade unions will brace up for a confrontation and that's what we are expecting. But our support for this gigantic move can not be over-emphasised, the corruption called subsidies has to go, and the government's 3 refineries must be put on concessions for better maintenance and services. Doing this will surely complement the supply channel that will make the products available for the citizens, irrespective of the pump price.

The wicked petroleum Marketers will now shut down the filling Stations for price hiking perhaps for profit maximization, only God knows who will win in the end. 

Ahmad M. Salihu

®© 30/5/2023