Increase In Fuel Prices: Is Nigeria Fantastically Foolish?
The announcement by the Federal Government of Nigeria deregulating, liberalizing or removing subsidy payments from petrol and kerosene or by whatever nomenclature they put their decision for withdrawing government total involvement in the marketing of these very essential products did not come to me a surprise. In fact it is very very long overdue for decades now except that unfortunately, precious government have not been very courageous to do the needful rather they have succumbed to blackmails, unpatriotic and dubious political pressures and interests. There can be no other better time for the federal government of Nigeria to take this decisive decision than now as this will cause chains of reactions in other sectors and get government and the Nigerians people agitated to demand more accountability and transparency in the management of the resources of our nation by a select privileged few in positions of trust.
But why Nigeria as the sixth largest oil exporting country in the world must we engage in this seemingly unending debates over scarcity of petroleum products and appropriate pricing? This has been the major pre-occupations of all government of Nigeria since after post-Independence. Would it be wrong again if British Prime Minster (David Cameron) describes us as fantastically foolish? Are we fantastic fools?
While applauding this decision, I will also fault the government in some areas which amounts to putting the cart before the horse and some contradictions in the policy.
(1) Deregulated or liberalized economy implies that government will have almost no form of interference by way of regulation or fiscal involvement. It is a free market policy where demand and supply are the only determining factors allowed to influence prices. It is therefore wrong for government to embark on this policy while also allowing external factors such as Petroleum Products Pricing and Regulatory Agency (PPPRA), Department of Petroleum Resources (downstream section), Petroleum Equalization Funds, Association of Major Oil Marketers and Independent Petroleum Marketers Association of Nigeria (IPMAN) to continue to exist to interfere and influence the prices of the products.
(2) It is also wrong for the Federal Government to allow trade and labour unions to continue to interfere directly with this deregulated regime. If Workers have their incomes affected by policy in the event of any increase in prices of these products they should explore the wage reopener clauses in their Collective Agreements with their employers for a corresponding wage review. This is lawful approach and rather than embark on organizing street protests against this government policy.
In the same vein, other citizens affected by any price hike have various lawful means to also seek increase in their revenues, either through raising their cost of goods and services. This has always been the case and is legitimate. What goes round comes round to government to bear. It is very unfortunate that the past Federal Governments of Nigeria were not courageous to confront the real problem facing the Nigerian oil sector (upstream and downstream). Nigeria is fantastically foolish to be engaged in unending debates over scarcity of petroleum products for local consumption even as the six major crude oil producing and exporting nation in the world and one of the most populous nations of the world with able workforce of over one hundred million citizens. We ought to be in the same pedestal with other members of OPEC who export both crude oil and refined petroleum products. We are indeed fantastically foolish and corrupt!
I therefore demand as follows:
- that while this Deregulation policy is on, the PPPRA, DPR, PEF, IPMAN, Association of Major Oil marketers and other Unions or Associations that are directly or indirectly involved with the regulation, fixing or influencing prices of petroleum products should immediately be outlawed. Pure market forces of demand and supply should be the only lawful factors and agents to regulate and fix the prices at all given times.
- While this is ongoing, the federal government should immediately deploy her anti-graft Agencies into the oil sector (upstream and downstream) to identify and bring to Justice, those unpatriotic citizens and their collaborators who have destroyed our nation and continue to cause the worst form of economic crime and sabotage against our nation and her citizens.
The federal government must realize and remember that this is a very sensitive issue that affects the generality of the masses of our country which has caused the downfall of governments across the globe either through democratic means of elections or military coup d etat. We do not wish any of these in our nation.
***Comrade Igbini Odafe Emmanuel, National President Vanguard for Transparent Leadership and Democracy (VATLAD).