Nigeria is a nation with over two hundred million citizens, a significant number of whom live in abject poverty. Even as a country among the top oil-producing nations of the world, we have continually suffered from fuel scarcity (premium motor spirit), the high cost of liquefied petroleum gas (LPG), and other petroleum products.
The Federal Government (FG) of Nigeria has over time lamented rising debts and poor national development as a result of persistent fuel subsidies that were not removed. The FG has thus decided on fuel subsidy removal, which is expected to cause more hardship on citizens but with a promise of a better tomorrow. The current administration and the in-coming government are said to be working on modalities for the removal of fuel subsidies by the middle of this year.
The FG has disclosed that it has secured a World Bank facility worth $800 million as a first tranche to address a segment of the post-petroleum subsidy palliatives requirement in the country. The Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed, disclosed that the $800 million was to be disbursed through cash transfers to about 50 million Nigerians, who belong to the most vulnerable category of society.
This may sound laudable, but this will rather impoverish the citizens, and I see this as a misplaced direction. The grant will serve about 10 million households, and each of the proposed 50 million Nigerians will get N5000 ($6.7) per month for six months. The question goes thus: with the expected inflation of goods and commodities post-subsidy removal, will N5000 be enough palliative to cushion the effects of the subsidy removal? Are there not better alternatives to channeling such grants? Instead of palliatives that may be corrupted along the way, would empowerment and a better standard of living not be a better alternative?
I know I am not at the helm of affairs yet, but my point of view at the level I am currently at is contrary to this proposed approach by the FG to disburse this fund.
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TRANSPORTATION: Since it is post-fuel subsidy removal welfare the FG is after, what happens to the provision of subsidized and available means of transportation, such as buses and better roads? The citizens will appreciate the availability of buses to and from homes, school, and work as a palliative rather than pay N5000, which is less than what average Nigerians pay to buy airtime or data in a month.
POWER SUPPLY: I will continue to advocate for improved power supply. There are businesses and companies that run their organizations on petrol or diesel due to the epileptic power supply. If the fuel subsidy is going to be removed and the cost of fuel will be higher, the least the FG can do is improve the supply of power to cushion the hardship of procuring fuel.
INFLATION: It will be magical when we experience the high rate of inflation that will come as a result of the fuel subsidy removal. Every trader or business owner will increase the cost of commodities and blame it on the high cost of fuel. Nigerians do not hesitate to inflate goods and blame them on obvious policies. The salary and wages commission will do well to review the salaries of civil servants who are compelled to work despite poor wages and salaries. The FG should review harsh policies that mar the smooth importation and exportation of commodities, thereby constraining the availability of these commodities to end users.
EDUCATION: My view here is simple: rather than donate N5,000 monthly to the vulnerable people, equip them with better education. There are communities where even the teachers there can hardly construct a good grammatical sentence!
By and large, the FG should review the standard of living while the society braces itself for the upcoming days.
Thank you for reading through. I would love your comments and contributions 馃
