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Subsidy Soap Opera

The last has not been heard of the fuel subsidy quagmire. For those of us who have just returned from Mars, the FG on New Year’s Day increased the pump price of petrol from N65 to N141. It reached this decision after it suspended subsidy (part payment). This subsidy withdrawal sparked huge protests in many parts of the country and later saw organized labour joining with a nationwide strike action that crippled the country for nine days.

There were two sides of the coin on the subsidy debate: pro subsidy and anti subsidy. Convincing arguments were presented from both sides while Nigerians were then told that the real issue should be whether or not they could trust the government to keep its promise on SURE-P, a document that proposed to channel the savings that should have been used for the subsidy to do other things. But while the protests, strike and arguments raged on, the House of Representatives formed an ad-hoc committee to probe the subsidy scenario.

This ad hoc committee had its sessions televised live and within a few days, it became apparent that there was more to the government position than was being reported. The ad hoc committee report on the fuel subsidy probe will be released tomorrow 17th April 2012. There is a jostle to court the attention of the ad hoc committee members by players in the downstream sector all of whom from the facts available are all culpable in the subsidy loot and terrible abuse of office.

It is obvious from all indications that there is an effort being made to give a different shade to the handwriting on the wall since it cannot be easily read by everyone. The committee’s report and possible recommendation is now a huge public debate as there are feelers the report might have leaked to a section of the media and the presidency.

Amidst this expectation of the ad hoc committee’s report and recommendation has come news that the central bank governor, Sanusi Lamido Sanusi or Sanusi for short has argued again for a total withdrawal of the subsidy come what may. He (Sanusi) in an interview granted to Reuters said “I would simply like to see that the government does not pay a penny more than that, no matter what happens.” His opinion was hinged on the premise that Nigeria would cry should crude prices fall following negotiations to open up reserves from certain countries and allow some others pump beyond their OPEC allotted quota.

With the report being awaited and Sanusi calling for the petrol prices to be sold as oil marketers deem fit, it takes no Daniel to interpret that Nigerians who are already adjusting to buying gas at N97/liter albeit grudgingly will have to be prepared for another ordeal. Reasons are not farfetched: the immediate expected recommendation is an indictment of the NNPC officials, petroleum ministry top shots and few importers all of whom are said to have colluded to defraud Nigerians through sharp practices. It is also expected that the committee will recommend a transparent regime for managing the country’s oil imports meaning that the NNPC should not be responsible for making out handout payments to the importers. In other words, oil importers will sell directly to the market at whatever price the importers suggest.

The board has been arranged afresh with pawns and material alike in place at both ends. We must wait now for the opening and from then on another change will commence. There will always be an effort to resist change by anyone or group whom that change disfavours. It is hoped that the committee has done a thorough job and are not about to bring more hardship through poorly thought solutions or brought about by influence from the culpable parties in the NNPC, oil ministry and importers. It is also hoped that the president, who has before now expressed his ignorance and asked for the committee’s enlightenment should be courageous to bring the guilty to book no matter their stand or place in our impoverished society. Lastly, labour unions, civil society and Nigerians in general should stay wide awake and refuse to be puppets in this script written by a few rich who though wealthy are bereft of true creativity but insist on exploiting the people. No man is rich whose people are poor.

The next episode of this nationally watched soap where nearly everyone participates in a reality TV show cannot be missed. Let us all stay tuned.

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