Join Hands With President Buhari, Strike Not An Answer

I think as Nigerians, we have to be honest with ourselves about the true   state of our economy. President Buhari met an economy that was already   in comatose. Civil servants were owed salaries, Federal Government was   indebted to petroleum marketers, power supply was epileptic, North East   was ravaged by insecurity and the policing of our territorial waters had   been left to the hands of those that were never envisaged by the   Constitution of the land. A lot of things had gone wrong to a level no   one can ever imagine until staggering cases of maladministration and   corruption were unravelled .

Buhari’s emergence coincided with the over supply of crude oil into the   global market as a result of shale oil revolution in the United States   of America and decision of Saudi Arabia to protect market share by   increasing supply which left oil price lower for longer at about $32.   This, of course led to reduced foreign exchange earnings and ultimately,   a drastic reduction in monies available for sharing by the Federation.

The problem we are facing today can be attributed to years of inept   leadership which neither had foresight nor focus. Thisday , Nigeria   cannot boast of efficient refineries and our foreign exchange currently   stands at $27bn. This is unacceptable for a country who is the largest   producer of oil and gas on the African Continent.

We have got only $27bn in foreign reserve, $2.2bn in Excess Crude   Account and slightly above $1bn in Sovereign Wealth Fund while some oil   and gas countries have hundreds of dollars in reserve with modern day   infrastructure and social services.

The true state of our economy is that Nigeria is expected to produce   2.2million barrels of oil in 2016 though that has reduced considerably   due to pipeline vandalism and production disruptions in the Niger Delta,   but at that; the Federation which comprises of the 3-tiers of government   is entitled to about 60% of total production due to Joint Venture   agreement. Nigeria will fund cash calls and the remaining will be   shared. Therefore in 2016, Federal Government has projected an oil   revenue of N860bn.

In total, Federal Government projected a revenue of N3.8tr for 2016 out   of which N1.4tr will be used for debt servicing and salaries to the tune   of N165bn will be paid every month. You can now start to understand that   we are simply borrowing to feed our political elite fat and the   exorbitant life they live is simply fake . The payers of the fakeness are   the millions of visibly poor Nigerians and creditors- local and foreign   to whom Nigeria owes trillions of Naira.

For those who are gleefully calling for strike action, I advice them to   have a rethink. The cost of subsidizing a litre of PMS when a barrel of   crude is slightly above $40 a barrel is not so much but deregulation was   a tough decision taken to conserve our fast depleting foreign exchange,   introduce transparency and competition to the sector and boost   employment.

The callers of strike knows fully well we can not transact international   trade with our local Naira and do know how inglorious it would be for a   sovereign country like ours to run out of dollars. Labour unions should   simply join hands with President Buhari in repositioning a country that   had been badly governed for years, concertedly assist in exposing and   recovering stolen funds and Nigeria will be better for it.

It is important to note that the Buhari -led government is not   anti-people. The orientation of the Federal Government remains pro-poor   and has made provisions for palliatives to the tune of N500bn in the   2016 budget. The palliatives which would be delivered as part of the   social intervention policy of the government will lift millions out of   poverty and promote inclusive growth.

Strike is not an answer but will only stymie the little progress that   has been made.

God bless Nigeria!
Written by Kolawole   Omole , Public Affairs Analyst.