NIGERIA SOCIO-POLITICAL DISCOURSES Series on Setting the Captive Minds Free - Chapter One. Written by KEMKA S. IBEJI

Chapter 1: The Satanic Sermon of Subsidies Removal and the Exorcism Underway.

There's no dearth of accolades as each day we keep reading and hearing the praise singers of Bola Ahmed Tinubu and the APC loudly saying that nobody else has the guts to remove the subsidy if not Bola Ahmed Tinubu. 

In fact, some of their campaign allusions these days is that if Tinubu is defeated and ousted as the president of Nigeria in the 2027 Presidential Election, the next president of Nigeria will return subsidy. The subsidies being talked about here are;

1. Subsidy for Premium Motor Spirit (PMS), popularly known as fuel or petrol. 

2. Subsidy for Foreign Exchange otherwise known as FOREX. 

To put our discussion in the right perspective, it will be fine to clearly explain what subsidy means. So the first question, therefore, is; what is subsidy? 

Economically, subsidy is a financial benefit provided by a government or organization to individuals, businesses, or institutions. Designed to support specific economic activities, they aim to lower production costs or keep consumer prices artificially affordable (Investopedia).

Subsidies, in corporate finance, act as a policy tool to encourage the production and consumption of essential goods or services that provide broader societal benefits.

The definitions above are basically relevant on the macroeconomic level which considers the totality of the economy and issues like national income, unemployment, inflation, etc. Whereas this also has a way of affecting the individuals, our discussion will want to dwell more on the microeconomic strata of the economy which affects the individuals, demand and supply, pricing and the likes. So let us try to get definitions of subsidy that touch the individual citizens of Nigeria. We shall however return to the macroeconomic aspect in the general discussion and analysis of the pros and cons of the action of the government of President Tinubu and the APC with reference to the subsidy removal.

A subsidy is financial assistance, such as a cash grant or tax break, given by a government or organization to an industry, business, or individual. Its primary purpose is to lower the cost of producing or buying a good, keeping prices affordable while encouraging public welfare or economic growth (Merriam Webster).

By the above definitions, subsidy simply means a help from the government to the people; either individuals, firms, organisation et cetera. This help might be to encourage production or consumption. In encouraging production of a product, the government can decide that whoever is going into the production of certain goods or services will have some support from the government. This support might come in the form of a grant, gift, waivers, building roads to your factory, tax holidays, and many other ways. 

In encouraging consumption, the government can decide to give subsidy to a local producer in terms of paying for part of the production cost such that the goods or services can be given to the citizens at cheaper or lesser prices. 

What is the case of subsidy removal in Nigeria? 

Remarkably, the government of Nigeria for many years has produced crude oil which is a special gift from God to Nigeria and Nigerians. Crude oil is sometimes called black gold to point out how valuable it is. And Nigeria produces one of the best types of crude oil known as Bonny Light Crude Oil (BLCO). This is known as the sweet crude and the charm of the world.

In her wisdom, the previous governments of Nigeria thought that the masses of Nigeria can benefit directly from this blessing of God Almighty to Nigerians. The government decided that since they are selling the crude oil and making so much money from it to sustain the country, they will pay some fraction of the total cost of petrol or fuel (PMS) per litre that Nigerians consume to lessen the burden of the citizens. In other words, when the landing cost of a litre of PMS with the profit margin of importers was, assuming, ₦300, the government chose to pay the importers, say, ₦230 and allow the citizens to pay ₦70. This means that while the real cost of PMS was ₦300, the past governments were subsidizing the fuel with a whooping ₦230 and allowing the citizens to enjoy it at just ₦70 only. This is exactly how previous governments gave back to the citizens some benefits from the blessings of crude oil bestowed on Nigeria by God. 

What is or went wrong with the subsidy? 

From the explanation above, it's clear that subsidy is never and can never be a bad thing. So what was the problem with the subsidy in Nigeria? Why did subsidy become a curse rather than a blessing it's supposed to be to Nigerians? 

The subsidy regime began to suffer the Nigerian factor - corruption. Corruption came into subsidy in various ways. Let's consider the prominent few of them;

1. Importers began to quote wrong figures. For example, importers connived with some elements in government to defraud Nigerians by declaring fictitious and unfounded numbers. So an importer could import 1,000,000 (one million) litres of PMS and turn back to declare that he or she imported 5,000,000. The government goes ahead to pay for 5,000,000 litres while in the actual he or she only imported 1,000,000 litres. This put a big hole in the treasury of the country. 

2. Even after declaring fictitious and wrong figures and are paid on the same crime, the importers also went further to divert most of those products to neighboring countries where there are no subsidies selling them at very high prices and making blood money. So they were defrauding Nigerians and sabotaging the economy. 

3. They went ahead, in concert with some government functionaries and agencies of government to alter statistics and give out false information. For example, to cover up their loots, of course, if the real fuel consumption of the country was 5,000,000 litres per day, they declare that it was 20,000,000 per day. 

4. Many other crimes to worsen the situation. 

What are the effects of the subsidy crimes? 

There are many ways the crimes attached to the subsidy regime or administration were affecting the economy and the citizens. Some of them are;

1. Economic sabotage: while the country was trying to help and support her citizens, the citizens were denied the benefits by a few people like the importers, some government functionaries and agencies, etc. 

2. The economy was bleeding. These folks were defrauding the economy with inflation of the quantity supplied. 

3. The crimes were getting wilder as diversion rose and international trade between Nigeria and other countries began to have some colourations that were unfriendly and unacceptable. 

4. The government could no longer manage the subsidy regime. 

5. Etc. 

Attempts at removing the subsidy. 

The first removal of the subsidy was done by President Olusegun Obasanjo. He removed the subsidy on Automotive Gas Oil (AGO) which is known as diesel. This made the price of diesel to skyrocket. 

Also, during the regime of President Goodluck Jonathan, he attempted to remove subsidy on PMS but the entire went berserk, rejected such an attempt. There were strikes, demonstrations and threats from the opposition and the civil society organisations. Politicians in the opposition like the current president (Bola Ahmed Tinubu), the Nobel Lauriete Professor Wole Soyinka, members of clergy like Pastor Adeboye and many other prominent Nigerians were in the demonstration for the rejection of the subsidy removal. Many of us were in support of the rejection. 

Why did most genuine people reject the subsidy removal by President Goodluck Jonathan? 

The major points of rejection were;

1. The government was weak. 

2. The government was enmeshed in topical corrupt practices such that they no longer enjoyed the trust of the masses. 

3. Most of those who rejected it genuinely were deceived. 

At the birth of the government of the APC led by Late President Muhammadu Buhari in 2015, he removed the subsidy on PMS and the price of the product rose from ₦80 to ₦140 per litre. Nigerians gave Buhari every support to succeed but the government of Buhari and the APC were built on lies and deceit. 

During their campaigns prior to the 2015 elections, Buhari and the APC promised Nigerians that they would make the Naira exchange for equality with the US Dollar. They also promised Nigerians that when the subsidy is removed, it will be a temporary sacrifice by Nigerians as the excess from the savings will help the APC government build 1 (one) refinery each year and begin to produce PMS and other petroleum products locally which will make the prices fall even below what it was being sold before their government. 

President Bola Ahmed Tinubu was a major protagonist of that promise that turned into propaganda to win elections in 2015.

Fast forward to the current APC government led by Asiwaju Bola Ahmed Tinubu which came into power in 2023. The fortune of the entire country took a downward dive on the 29th of May, 2023 on the inauguration of President Bola Ahmed Tinubu. While he was yet on the stage delivering his inaugural speech as the new president of Nigeria, he quibbled in the salutary part of the speech that subsidy was gone. So while he was still making his speech, the pump price of petrol swung from ₦140 per litre to over ₦500 per litre. From that moment, the country has never been the same. 

The satanic Sermon of Subsidies Removal by the APC governments. 

President Muhammadu Buhari removed subsidy on PMS in the open but returned it at night. So while Nigerians suffered for subsidy removal by the then APC government of Buhari, the man was busy paying subsidy. Can we ask why? 

Again, Bola Ahmed Tinubu announced the removal of subsidies on both PMS and FOREX. But what happened? 

We didn't explain the forex subsidy in Nigeria but it has no difference from our definition of subsidy. It simply means that Forex traders and importers were given foreign exchange as a reduced rate from the going rates. But instead of doing the right things with the reduction and waivers, they returned the subsidized money into the market and sold them back at the prevailing rate. This was a huge crime against the country. 

So was Bola Ahmed Tinubu especially right for removing the subsidy even when he vehemently rejected the removal by President Goodluck Jonathan? 

The answer is yes and no! 

It was wrong to remove the subsidy for a few reasons! 

1. It was morally wrong for Tinubu to remove the PMS subsidy since he rejected such an attempt by President Goodluck Jonathan.

2. It was continuously wrong for President Bola Ahmed Tinubu to have removed the PMS subsidy especially since he hasn't found it reasonable to apologise to former President Goodluck Jonathan and Nigerians for getting involved in the actions that forced the former president from the same action. 

3. The subsidy removal portrays President Bola Ahmed Tinubu as a weak, incompetent and not knowledgeable President who could not manage the ills of the subsidy and allow Nigerians to enjoy the benefits of the subsidy administration. This is significant in reference to his character as a national deceiver and incapable President. 

4. The method of the removal made everything about it wrong. The timing was poorly fixed and there was no proper plan to manage the effects. This is a huge failure which makes the removal very wrong. 

5. Etc. 

The removal would have been right if 

1. The government had built a refinery by now or have made considerable attempts in establishing one. 

2. The removal would have been acceptable if there was a plan to ameliorate and cushion the effects and consequences of the removal and thereby reduce the pains and negative impacts on the citizens. 

3. There has not been a clear roadmap to encourage investors to come into the midstream in terms of building refineries instead the government is busy with inanities and frivolities and abandoning Nigerians to themselves. 

The Exorcism! 

Why most people who praise President Bola Ahmed Tinubu do so are tautologously wrong. Most of their reasons for applauding him are;

1. Tribalism: many of them are his tribesmen from Yoruba land who see nothing wrong in any wrong action once it is performed by one of their own. 

2. Most of them are those who are expecting something from him and won't risk telling him the truth or condemning his wrong actions. 

3. Of particular concern are those who support that on political grounds. These folks are here for just politics and nothing more or less. So it's all about protecting their political party and interests. 

Then are the praises and supports for the subsidy removal right? NO! 

Summarily, the removal of the PMS subsidy especially signifies President Bola Ahmed Tinubu as an immoral personage. He is a deceitful character, an unreliable fellow, unstable element and uncharitable opposition. 

President Bola Ahmed Tinubu by removing the PMS subsidy loudly announced to the world that he is an incompetent manager who could not manage the few criminals who were sabotaging the economy and the country. What he should have done if he were a good leader and a meticulous manager of national resources is to quietly investigate the subsidy regime to fish out the criminals and bring them to justice. 

By avoiding this route, President Tinubu clearly advertised himself as someone who is not interested in fighting corruption. He let the criminals run home with their ill-gotten wealth amassed to the detriment of the rest of the citizens. 

By removing the subsidy on PMS, President Tinubu puts it out, loud and clear, that he's not interested in the welfare of the Nigerian citizens. He doesn't care whether they suffer or even die. This is a bad way to be a president. 

For those who support and applaud the removal of PMS subsidy, it's important you realise the damage on the economy both at the microeconomic strata and the macroeconomic levels. Inflation has galloped, the cost of living has skyrocketed, the insecurities have doubled, poverty has taken leaps in multidimensional stances and the quality of living in Nigeria has dropped to a historic floor. Nigerians are living in misery, want, abject poverty, lack, hunger, depression, despair, helplessness and hopelessness. Dreams have been shattered and the future is so bleak for the country. 

Healthcare, education, economy and even the national image are in bad shape. The worst is that there seems to be no hope for Nigerian ls in President Bola Ahmed Tinubu as he seems totally lost to the realities of the country in its entirety. 

Which way Nigeria? 

I am, 

KEMKA S. IBEJI 

A Philosopher King