SUBISIDY REMOVAL: CUTTING OFF THE HEAD TO STOP THE HEADACHE

In this case of subsidy removal, Nigerian Government of Goodluck Jonathan seems to be carrying elephant and matching the white ant. There are three things in this scenario: the Elephant which is the oil subsidy together with the castrating cabals; the Federal Government of Nigeria under Jonathan carrying them; the White Ant as the ordinary citizens that are helpless and hapless as beasts of burden bearing the entire weight of the subsidy removal. Before the analysis, let me say it loud and clear that subsidy on petroleum should be removed. So, I am not a party to the view of many a Nigerian Labour Congress and Trade Union Congress on retaining of subsidy. But get glued to this analysis before you crucify me.

THE ELEPHANT
The removal of subsidy means that government will not be in part payment racket to the cost of refining one litre of petroleum outside and importing it into Nigeria. That means that Nigerian Government and those big time business tycoons referred to as ''cabals'' are in league to refine petroleum motor spirit (PMT) otherwise called, fuel. The mathematics is simple to understand:

Cost of getting it from the exporters and transporting to the refinery abroad, plus the cost of refining chargeable by the refiners, plus the cost of transporting back to Nigeria to dock at any of our sea ports plus the gain per litre of refined fuel computable by the tycoons themselves. This is part A. Part B, is the demurrage (that is, charge by the Nigerian Ports Authority (NPA) for allowing the ship to dock on its waters), which Federal Government pays. Both parts A and B combine to make up the cost of refining one litre of fuel. When demurrage is paid by the tycoons, they add it up before fixing the cost of refining one litre of fuel. The tycoons prefer paying the demurrage so that they can ''pad'' it for the Federal Government to pay en bloc.

The tycoons do not come singly to the federal government, be warned: they formed a cartel to fight common course and are rewarded according to the quality of each refined crude and brought home from abroad. This cartel is registered with NNPC, so that Government through NNPC knows the members of this cartel of subsidy cabals, from A to Z. the minister of petroleum resources Mrs. Allison Madueke said our hands are tied. Who tied the hands of Federal Government?

This elephant as fuel cabals are licensed by Government through NNPC to undo Nigerians. If any government looses the power of force, then it is colonized by a superior power. Hence, Nigeria Government under Goodluck Jonathan, by confessing that Federal Government pays about N1.7 trillion yearly to fuel cabals as registered siphoners of Nigerian crude, has directly, not indirectly, alluded defeat, to wit: economic colonization of Nigerian by a clique of Nigerian fuel cabals. Goodluck Jonathan alludes incapacitation to arrest then bring them to book. Instead of using the machinery of state power as commander-in-chief of the armed forces to arrest and try them for legal imprisonment, Goodluck Jonathan cries foul every now and then. Is he (Goodluck Jonathan) not a failure? Goodluck Jonathan, could you please be humble enough to tell Nigerians the group of cabals you knowingly licensed to refine collective patrimony of crude oil abroad to extort Nigerians? Who are they?

It takes two to tango. So, Goodluck Jonathan licensed the cabals to undo Nigerians even as he himself is an undoer of Nigerians. Otherwise, why should he license them in at the first instance? The otherside of the coin of licensed corruption in the cabalistic rule of Nigeria, is NNPC as an arbiter in the oil industry. Since NNPC was inaugurated as the sole ambiter of oil business in Nigeria, its account of receipts of oil money and payment has not been audited. How much the management agrees to give Federal Government is what it receives and that is what Nigerians are made to know. Come to think of it. Is Goodluck Jonathan not aware that NNPC is a cesspit of corruption in Nigeria? What has he done about it as commander-in-chief of the armed forces? Is the problem removal of subsidy or arresting corruption that caused it? NNPC licenses the cabals to undo Nigerians. Shouldn't management of NNPC be arrested and tried and imprisoned for undoing Nigerians in the crude/refined oil racket? Shouldn't Allison-Madueke be arrested alongside other ministers of petroleum since inception of NNPC and tried for undoing Nigerians? How much has Nigeria lost to these oil cabals which include NNPC management and past/present ministers of petroleum resources?

Is the problem removal of oil subsidy or arresting what caused the subsidy primarily? If these cabals are removed and disciplined, there will automatically be no subsidy because government will do the business directly or licensed marketers pay NNPC carry and refine and sell directly to consumers, in which case, government forbids them forming any cartel, so that they deal with consumers differently.

FEDERAL GOVERNMENT OF NIGERIA
The spate of corruption in the government circles in Nigeria is not just mind-aching, but satanic. Satanic in the sense that the hoi-polloi that should be serviced by the fund from government are trampled upon by the looters of treasury. The budget of Nigeria yearly is enough to stamp out poverty if implemented fully and expectantly. What we see is diversion by hijacker – cabals in federal executives, federal legislators, judiciary, state executives, federal legislators, judiciary, state executives, house of assembly and local government area councils. What eventually gets to the people is very minuscule to effect any changes.

National Assembly members, I mean each members, either senate or representatives, is paid salary more than the United States President (Barak Obama) upto to five times and also upto ten times or more, than British Prime Minister (David Cameron). National Assembly receives about 25% of national budget. What do they do with the money? What is their job to warrant that volume of cash and emolument?

President's retinue of dependants and amen-members such as ministers and special assistants as well as those of the Vice President signposts a nation sinking under the burden of recurrent expenditure inform of salaries and entitlements and security votes and overheads. Less than 1% of the national budget goes to capital expenditure. How can Nigeria develop? The office of the first lady of the federation and state is unconstitutional. Ironically, it is a conduit pipe unchecked which takes a very large chunk of our national budget. The allocation is carefully excluded from our budgets, but is secretly allotted by the president or government as husbands. The wardrobe allowance for executive legislator members run into many hundreds of billions of naira. Which one is left for what project?

The government through the petroleum minister said that there could be no subsidy removal after building the refineries or resuscitating the ailing ones. That is, there should be oil subsidy first before revamping the moribund refineries, in PH, Warri and Kaduna. She claimed that Nigerian Government has been trying to bring them back for years without success. This is another vista of government weakness to fight corruption. She has admitted inadvertently that Nigerians Federal Government cannot arrest, prosecute and imprison those behind the failure of the contracts, and so, the only way is to remove subsidy for the last rump man to suffer. Some people, be they contractors or their contractors, ate the money and frustrated the efforts of government to serve the people and such a personality as Oil minister publicly admits that government cannot apprehend the dubious contractors and their cronies for years. Is that not a shame?

The only way to get money to revamp the ailing refineries is to remove subsidy. Turn around maintenance above is enough to build three new refineries, yet nothing is being turned around yearly. Where has the money allotted gone to? The Nigerian way of course. Labran Maku, the minister of information (not minister of government lies) said ''without total deregulation of oil sector economy will collapse in the next few years''. Good prognosticator. If the oil sector is deregulated, who primarily benefits? Is that not the corrupt politicians and corrupt retired military officers that stole public money in billions who would establish? How can the ordinary Nigerian benefit from deregulation model by Maku? If the government completely moves out of control and allows the same cabals that ruined the refineries from operating, how would the ordinary Nigerian benefit? Maku answer!

The White Ant is the ordinary Nigerian upon whom the weight of corruption and voluptuous rapping of national coffers by the petroleum refining cabals and corrupt government officers falls on. He is helpless and hapless with federal government weakness contributing to his undoing more than the schemishes of the cabals. Suppose subsidy is not removed? Then these cabals together with corrupt politicians would go on and on milking the white ant dry. Suppose subsidy is recovered now without adequate planning; then the white ant suffers in the hands of these government-aided cabals who as importers, would sell at high-heaven prices. So, should subsidy be retained?

The answer is NO with emphasis. It should be removed. But when? No time until Federal Government lives up to its expectation of bringing the refineries back to life. The Federal Government is taking a weak position with power and its paraphernalia which it can use to bring back the moribund refineries. Suffice it to say that the refineries cannot work because of poor power output. So, first thing first: restore power. Is Nigeria not a failure in power generation? Is any power station producing upto 100 mega watts presently? Obansanjo administration budgeted 16.5 billion US dollars for power. Where is the money? Let Obasanjo and Liyel Imoke answer. Is the money still within reach? Can Goodluck Jonathan recover the money? Let the cabals primarily be arrested. Let government export crude to overseas, refine it and carry it back and sell until it establishes our refineries by restoring power. When government does the refining either here or abroad, the price would go down reasonably. It is then that government would see the shame involved internationally and do every thing possible to revamp the refineries. It is then government would do everything possible to fix power. Anything short of this is cutting off the head to avoid the headache.

Comrade Kindness Innocent Jonah is a seasoned Human Rights Activist and an unbiased National Commentator. Also visit these facebook sites: Justice Stand, Nigeria Unity and Kindness Innocent Jonah. Read his write-ups also in: the [email protected]. His Facebook Account is kindness Innocent Jonah. Please visit his site.

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Articles by Kindness Innocent Jonah