TAXES, LEVIES SUBSIDY REMOVAL AND COST OF LIVING INDEX

Nigerians woke up on January 1, 2012, to the reality of Fuel Subsidy Removal despite series of behind the scene negotiations between Labour and the government on the one hand, and counsel of several interest groups amongst which were the Organised Private Sector operators, Civil Right Groups etc across the country. Everyone was taken unaware as the war started just when some were still in drunken state from the January 1 hangover. In major cities like Lagos, Benin-City, Ibadan, Kano, Kaduna, all over Nigeria civil right groups and labour organized militant opposition. Briefly, the Boko Haram nightmare cooled off and suddenly there was again unity in diversity. The Muslims, Christians and people of other faiths all showcased themselves just as we do when we are on the winning side in football games. If it was joy, because to some, it brought some smiles, it was short lived. It lasted just one and half week even though economic activities were disrupted for the whole of January. I prophesied that the strike would not be for long because Nigerians don't and can't have the stamina to withstand long duration of strike. In Egypt, Libya, Tunis, USA and many other countries, strike actions have been seen to last for months. Currently, Syria is still in serious unrest and even with disruption of economic activities, the war is going on. In Lagos as in most cities, while Labour and Civil Right Group tried hard to drive home some of the relevant points, other agitators took the occasion for a jamboree of sort.

Former President Olusegun Obasanjo is known to be strongest proponent of Fuel Price increase. In fact his last gift to Nigerians as he stepped out of Aso Rock was an increased fuel price which late Alhaji Yar'adua cancelled knowing it implication to his young government. And to date, none has surpassed his record of frequent price increase with attendant promises to use the fund for certain developmental projects which regularly were regularly forgotten immediately after such promises.

Before the strike action, Labour had just scored the right cored with the salary and minimum wage increase from N7,500 to N18,000, N7,000 short of the agitated N25,000, and several state governments were yet to implement to the decision. Yet government never attended to increase in price of goods and services which like whirlwind, skyrocketed to the heavens in a jiffy. It was not the first time salary increase was visited with same hick in price of products and services. During the Simon Adebo and Jerome Udoji wages review of years past same was the fallout. Today, only few months away from the wage increase, the government is angling to increase the cost of all its essential services. Landlords, manufacturers and other service providers have lined up and effected upward reviews of their stakes. So of what benefit is wage increase if their consequences rubbish the desired effect? And for a country without effective consumers law, your guess as to price of goods and services is as good as mine.

On to Subsidy palliations. It is two months now since various committees and sub-committees were set up to handle subsidy palliation issues. At first we were told that 1600 busses were to be imported and distributed. To date, we are yet to see one of the vehicles. Are they travelling on foot? Camel's back? Or some wild animals have devoured them? It may not be strange, after all snake disrupted electricity supply at Egbin Thermal station or was it at the Shiroro Dam? What about the Ship loads of Rice promised? Have they gone the way of former promises? We are still waiting. This is for the transport sector where fares have hit the roof everywhere. But why is a government always inflicting pain with the speed of light and apply snail speed in cushioning its effects?

The other day, Dr. Barth Nnaji of NEPA National Electricity Power Authority alias (Never Expect Power Always) or is it PHCN (Power Holding Company of Nigeria) alias (Please Hold Candle Now) these two negative acronyms were as a result of failure of the institution to meeting the power needs of just any Nigerian. This man raised an alarm. He was emphatic when he said that the answer to electricity logjam lies in the increase in tariff for consumers in tune with the realities of the day. This is coming at a time Nigerian, where even though they had accepted the fuel price at N97.00/litre, it has not been available in the street for N130 in most states. But sir, will that bring the light?

Three factors drove away investors and manufacturers who had made Nigeria their homes many years ago, to nearby Ghana. One is unavailability of electricity, high and unstable cost of Petroleum products and insecurity. All these factors put together have impoverished Nigerians, created unemployment and rendered many homes broken. It is not news that Power Holding Company of Nigeria (PHCN) are contending with very obsolete equipments in a country where Obasanjo budgeted and spent Billions of Dollars in the much talked about NIPP (Nigerian Integrated Power Project) what did it achieve? In Nigeria, things are done downside up. No wonder someone wrote in the NATION Newspapers weeks ago, that “Water flows upward in Nigeria”.

The Poverty Palliation Committee headed by Christopher Kolade is currently looking like a lame dock. It is yet to have a firm grip of its terms of reference just as some are angling to take the committee to court as an unconstitutional organ. Whichever way, the committee needs to give periodic reports of its activities since our Senators and Representatives do not consider that they owe us explanations in a Town Hall Meeting to debrief the citizens about goings on in the country.

If we have increase in fuel, water, electricity, education, road, sanitation and other taxes, tariffs, rates and levies from the Federal, States and Local Governments, with the price of commodities also remaining high yet salaries and wages which was reviewed few months ago is at tangent with these realities and with high rate of school drop outs, where exactly are we headed? What is the take of the common man whose income with the increase to N18,000.00 is but paltry $116/month!

Since the reduction of fuel price from the colossal N145/ltr to N97/ltr queues have returned to the Petrol Stations and all are selling at their local price rendering the PPPRA useless. Who are we to blame? The agencies responsible have already come up with explanations before we solicit it. They say that Marketers are sabotaging product distribution because the current probe exercises. Must the citizens be held at ransom at every bend on every issue under the sun? Where really is the hope of the common man? The Naira nozzle is daily tightened. Obasanjo called it austerity measure during his first adventure. We tightened our belts. Then we had flesh. Now we are all bones. Everyone complain about lack of one or another item which is an essential source of life, but no one listens, yet they promise that the economy is shape for a great change.

I agree wholeheartedly that Nigerians are good people and the country is a great nation, otherwise where else can we have this cost of living index and people are said to be happy people? I am yet to come to terms with the gene of a typical Nigerian. Pushed to the worse circumstance where he is expected to even die, he breathes life next day. We love life – so much that we cannot go on hunger strike. No, not a Nigeria. Here we have a people whose government has set up Consumers Protection unit to monitor price of goods and services, but will right before you buy at a higher price and insult you to the face that you don't have money. We are a mixed bag. Who can help us from ourselves? Can anyone see why the taxes, rates levies and all come our way? It pains us to the marrow that we pay so much for just no service, but we refuse to rise to the occasion and take the pain to face realities. It was Chuck Norris who said I one of his films that “…when you want something done properly, you must always do it yourself.” I am sure we are at the threshold of consciousness and must do well to ask and answer ourselves some basic questions. Should we continue the way we are, it will take God to help. But He has already told us that He helps those who help themselves.

I we as a people keep deceiving ourselves, the taxes will continue to increase, dotto rates, levies, subsidy removal without cause and cost of living will continue to go high. The people will continue to die in silence and who knows the next victim may as well be your brother. Don't shrug your shoulder; these are the realities of our time. The struggle continues.


Mike O. Akpati is a public Affair Analyst based in Port Harcourt

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Articles by Akpati Mike