Monday, December 21, 2015

Removal of Fuel Subsidy: What Nigerians did not Know.

On removal of fuel subsidy; if this policy succeed it will be the twelfth time fuel price has charged since 1993, where fuel price has changed from N11-N97 in 2012. During OBJ. regime it was changed up to 8 times. If this policy succeed Nigerians will be spending above N150 to purchase a liter of fuel. 

The negative implications is that it will increase poverty rate in the country, as average Nigerian purchasing power will reduce. Price of basic amenities will upsurge; transport cost, health facilities, industrial products- as virtually all Nigerian activities are heavily dependent on road transport which fare will triple with the increase. Many industries will be forced to close-up, since the overhead cost would escalate giving the epileptic nature of our power supply in Nigeria. It will lead to mass unemployment, crime and other social vices, driving over 80% of the country to live below one US dollar. 

The positive implications is that it will reduce the spell and power of the mighty cabals in Nigeria who have enjoyed using the money embezzled in oil subsidy to hold Nigerian at ransoms . This few individuals sponsors so many interest groups to distort so many policy of government to their own favours at the detriment of the poor masses a case of Boko-Haram. Until this canals is cut-sized nothing will seem to work in Nigeria. This individual smuggled oil and refine in other countries giving job to outsiders while Nigeria youth wallow in abject poverty,,,,,,, '"there is God ooooo."

Subsidy removal will encourage competition which will automatically bring down the price of fuel in due season....ask the economist. If government must remove oil subsidy, there should be in place adequate measures and intervention to reduce the burden and wide spread suffering among the timing masses. Our oil refineries should be rehabilitated to meet the local demand, the electricity should be stabilize to ensure constant power supply to meet industrial and local demand, of course putting measure to punish saboteurs of her effort. Providing public transport and systematic regulations of the transport system to ensure the control of price, more investment in agriculture to ensure food security will reduce the burden, ensuring conducive environment where investment thrives to reduce unemployment and poverty in the country. 

Above all, there should be strong commitment on the part of the government to ensure that saboteurs are punished in the process otherwise it is not an option. Government should at the main time fight corruption in the subsidy exercise and deal with the cabals that smuggled oil to refine outside the countries and those that embezzled the oil revenue.

By  Emmanuel Joseph Noko.

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