Politics
Subsidy removal: Beyond Tinubu, Kyari’s personal interests
Published
1 year agoon
Subsidy removal: Beyond Tinubu, Kyari’s personal interests
By Mohammed Usman
Sahara Weekly Reports That One of the major highlights of the new administration of President Bola Ahmed Tinubu has been the suspension of the payment of subsidy for premium motor spirit, PMS, commonly called petrol.
Though there have been so many reforms introduced into the system since inauguration on May 29, 2023, the removal of fuel subsidies seemed to have been the most daring move ever made by any administration.
Come to think of it, as critical as fuel subsidy removal is to the turnaround of the economy, successive governments have made brick walls in their attempts to end the subsidy regime.
And, ever since that May 29th, 2023 pronouncement, a lot of dusts has been raised from different quarters, either from uninformed, or from the camp of those who benefited, albeit criminally or otherwise, while the subsidy regime held sway. And a lot of water has passed under the bridge too, including threats of strike.
However, it is pertinent to dig deep into this matter. Was removing the oil subsidy the right step in the right direction, or was it another government’s way to punish the masses?
Some say it is a wicked act by the president, Bola Ahmed Tinubu, aimed at impoverishing the masses further. Others say it is the handiwork of the group chief executive officer, GCEO, of the Nigerian National Petroleum Corporation, Mallam Mele Kolo Kyari. In this regard, the two top government functionaries have been the objects of attacks and accusations both in beer parlour discussions and in the press.
However, to the informed, this remains the most courageous move to place the country of the strongest path to its economic recovery.
The concept of fuel subsidy is not new to our national discourse. In fact, subsidy has been in place in Nigeria since the promulgation of the Price Control Act in 1977. It was put in place to cushion the effects of the global inflation of the 1970s.
In recent years, rather than being a blessing, subsidy payments have placed a huge economic burden on the government. The sectors that were affected negatively were the educational and health and housing sectors.
In justifying the subsidy removal, the government said subsidy removal would free up public funds for more meaningful infrastructure and developmental programs that stimulate industrialization, create jobs, economic growth and social prosperity.
For example: Almost N12 trillion spent on subsidy in the last four years is more than sufficient to develop any of the following projects: 2,400, hospitals of 1000 bed capacity across 774 local government areas; or 500,000 new houses to provide shelter to over 3.5 million Nigerians; or 27GW of electricity generation; or skill up and provide education up to tertiary levels for over 2 million Nigerians.
It also said it would create a market reflective downstream, which invariably stimulates more downstream investments, especially in the domestic refining space, thereby creating more jobs, prosperity, and growth.
The removal, according to the government would eliminate the unhealthy price arbitrage with neighboring countries thereby preventing the diversion and smuggling of gasoline outside the nation’s borders which bleeds our economy as well as reduce corruption surrounding internal product diversion as many marketers procure gasoline at subsidized regulated wholesale prices but still sell at deregulated retail prices.
It stated that the rich benefit more from the subsidy than the poor as they have higher number and capacity of vehicles to buy more gasoline; removal of the subsidy creates an opportunity to redistribute this benefit directly to those who need it more.
Subsidy removal also enables responsible gasoline consumption, which reduces waste as the prices are more market reflective, and the demand for the product will rebalance itself with the new price realities.
It equally allows the full recovery of upstream revenues, which enables reinvestment required to grow our national petroleum production and reserves and overall forex earnings.
The removal also would strengthen the naira as the growth of our foreign exchange earnings combined with reduction in product consumption reduces pressure on forex, thereby strengthening the naira.
It would also reduce product scarcity, opening market reflective prices to bring in more players, and create a more efficient market, thereby reducing fuel scarcity and its adverse effects on the economy.
The removal is also expected to reduce the growing and unsustainable budget deficit and, consequently, the debt burden, creating a more robust economic and sustainable future.
Successive governments had sunk trillions of naira into the subsidy payments. In 2006, the Obasanjo regime earmarked N1.9 trillion for these payments. Do not forget that at the period under review, naira exchanged at N130 to a dollar, making the amount $14.6 billion. This amount was to spike in 2007 when the same government spent N2.3trn, or $17.96bn, with naira exchanging for N128 to a dollar.
The above amount either tripled or quadrupled under the Yaradua/Jonathan administration as well as the Buhari administration. Now that the dollar is hovering around N800 in the exchange rate, one wonders what would be the fate of the economy in the next six months had the subsidy stayed.
Probably, this would have been the basis of the constant warning from international agencies of the dangers of accommodating this burden called subsidy. Prior to the removal of the subsidy, there were damning reports from the International Monetary Fund, IMF, and the World Bank concerning oil subsidy.
In its report titled, “Macro Poverty Outlook for Nigeria: April 2023” the World Bank said macroeconomic stability had weakened amidst declining oil production, costly fuel subsidies and other factors, further pushing millions of Nigeria into poverty, and that might become worse if the subsidy stayed up to June on 2023.
The report further said: “With Nigeria’s population growth continuing to outpace poverty reduction and persistent high inflation ratio, the number of Nigerians living below the national poverty line will rise by 13 million between 2019 and 2025 in the baseline projection.”
The bottom line is that in the last two decades, the fuel subsidy had cost the nation several trillions of naira. Even if it is narrowed down to between 2005 and now, the government spent approximately N21 trillion on subsidy payments alone.
The last regime of President Muhammadu Buhari, having realized the dangers ahead, stopped making provisions for the payment in June 2023 when his government would have expired. It was, therefore, incumbent on the incoming administration to pick up the gauntlet and do the needful.
From the onset of the existence of the subsidy, a certain set of individuals had smiled to the bank with each payment. It turned out that something that was done to assuage the suffering of the masses became an avenue for people with greedy and unscrupulous oil marketing companies to divert money into their pockets by sheer unconscionable criminality,
Speaking in a nationwide broadcast last Monday, President Tinubu reiterated on the benefit of the subsidy removal to Nigerians. He said in a little over two months, his government had over a trillion naira “that would have been squandered on the unproductive fuel subsidy which only benefitted smugglers and fraudsters That money will now be used more directly and more beneficial for you and your families.
“For several years, I have consistently maintained the position that the fuel subsidy had to go. This once beneficial measure outlived its usefulness.
“The subsidy cost us trillions of Naira yearly. Such a vast sum of money would have been better spent on public transportation, healthcare, schools, housing, and even national security. Instead, it was being funnelled into the deep pockets and lavish bank accounts of a select group of individuals.
“To be blunt, Nigeria could never become the society it was intended to be as long as such small, powerful yet unelected groups hold enormous influence over our political economy and the institutions that govern it.
“The whims of the few should never hold dominant sway over the hopes and aspirations of the many. If we are to be a democracy, the people and not the power of money must be sovereign.”
However, notwithstanding the president’s speech, the organized labour ordered workers to resume strike on Wednesday after talks with the government failed to yield positive results.
This is in spite of palliatives proposed by the federal government to ameliorate the perceived suffering the fuel subsidy removal would throw up.
This raises the question as to what the Nigerian labour is up to. Is labour truly yearning for the progress of Nigeria, or is it being sponsored by enemies of Nigeria?
At this critical period of our nation, we urge Nigerians to come together to support the good vision of the president to make the nation great, because from all indications, both the president Bola Ahmed Tinubu and Mallam Mele Kyari, the NNPC GCEO mean well for Nigeria.
Usman, a public commentator, wrote in from FCT, Abuja.
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Sahara weekly online is published by First Sahara weekly international. contact [email protected]
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religion
Prophecy for 2025: A Year of Vengeance, Harvest, and Divine Shifts By Pro. Kingsley Aitafo
Published
1 day agoon
December 21, 2024Prophecy for 2025: A Year of Vengeance, Harvest, and Divine Shifts By Pro. Kingsley Aitafo
Sahara Weekly Reports That Prophet Kingsley Aitafo, under the grace and spiritual leadership of His Eminence Rev. Pastor Samuel Belehou Oshoffa, founder of the Celestial Church of Christ, has unveiled 25 prophecies for the year 2025. These revelations call for vigilance, prayer, and alignment with divine purpose. Below is the detailed list of the prophecies:
1. A Year of Divine Justice
2025 will be a year of vengeance upon the wicked and a season of abundant harvest for the righteous. This is a time for reflection and spiritual alignment.
2. Weather Disasters to Pray Against
The world must unite in prayers against severe weather disasters, including excessive winds, water overflow, floods, earthquakes, and tsunamis. These natural calamities threaten to disrupt lives and properties globally.
3. A Major Technological Advancement
WhatsApp is predicted to receive a significant upgrade, potentially integrating email functionalities. This innovation will redefine digital communication.
4. Nigeria’s National Football Team
The Nigerian national football team should be prayed for, as a painful defeat could occur.
5. A Great Man of God in Danger
One of the most celebrated men of God is at risk of sudden death. Prayers are needed to avert this tragedy.
6. Sunday Igboho
The activist should be prayed for to avoid heart-touching news that could cause widespread concern.
7. Nnamdi Kanu
Freedom is within reach for Nnamdi Kanu, but prayers are needed to ensure he lives to see it.
8. Fire Disasters Worldwide
Serious fire disasters are foreseen and must be prayed against to protect lives and properties globally.
9. NYSC and PHCN Reforms
The National Youth Service Corps (NYSC) and the Power Holding Company of Nigeria (PHCN) will be empowered and reshuffled for greater effectiveness.
10. Global Police Forces
The police worldwide are warned of potential brutal revolts from the masses. Prayers are needed to prevent such events.
11. African Nations and Coups
Several African countries are advised to pray against unexpected coup plots.
12. Goodluck Jonathan’s Political Path
Former President Goodluck Jonathan is encouraged to follow God’s leading and refrain from contesting future elections.
13. Changes in EFCC
The Economic and Financial Crimes Commission (EFCC) will be more empowered, but significant transformations will occur within the agency.
14. Passing of Aged Leaders
Several aged ex-presidents, traditional rulers, and military leaders will pass on in 2025.
15. New Religious Leaders
New leaders will emerge in white garment denominations and the Catholic Church, marking significant transitions.
16. Churches in Danger of Scandals
Great churches like RCCG, Winners Chapel, Christ Embassy, Mountain of Fire, and COZA are urged to pray against confusion and scandals that could lead to divisions.
17. Exposure of False Churches
Churches that operate under the guise of Christ without genuine faith will be exposed.
18. Protection of Yoruba Entertainers
Yoruba actors and actresses should pray against strange illnesses, while English-speaking entertainers must pray against sudden deaths.
19. Plane Crashes
A major plane crash could occur, causing widespread pain. Prayers are needed to prevent this disaster.
20. National Unity in Nigeria
Despite ongoing agitations, Nigeria will remain undivided.
21. The Monarch and Pope’s Seat
Prayers are required to prevent sudden vacancies in the monarchy of England and the papal seat.
22. Deadly Disease and Global Conflict
A new, more deadly ailment than COVID-19 and the potential of a mini-war loom on the horizon. The world must unite in prayer to avert these crises.
23. Rising of True Last-Day Churches
The emergence of last-day churches will bring forth spiritual giants and miraculous powers reminiscent of the apostles of old.
24. Business Tycoons in Nigeria
Successful Nigerian business magnates should seek divine protection against untimely death.
25. Christ’s Return is Near
Finally, Prophet Kingsley reminds the world that the return of Jesus Christ is near. Embracing holiness and righteousness is the only path to prepare for His coming.
Prophet Kingsley’s prophecies serve as a divine reminder for individuals, nations, and institutions to seek God’s guidance and protection. Let 2025 be a year of faith, reflection, and readiness for what lies ahead.
Let us watch, pray, and align with God’s will.
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Politics
Peter Obi Offers to Fulfill Bail Conditions for Dele Farotimi, Advocates Justice
Published
2 days agoon
December 20, 2024Peter Obi Offers to Fulfill Bail Conditions for Dele Farotimi, Advocates Justice
The global coordinator of the Obidient Movement has announced that Peter Obi, former presidential candidate and leader of the movement, has stepped forward to fulfill the bail conditions for human rights lawyer Dele Farotimi.
Farotimi, a prominent activist known for his bold stance against systemic issues in Nigeria, was recently granted ₦30 million bail by a Federal High Court following charges filed against him. The case has attracted significant public attention, with widespread support for Farotimi from various quarters.
In a statement, the Coordinator revealed that Obi expressed his gratitude to the judiciary and all stakeholders involved in the legal process. The former presidential candidate emphasized the importance of fairness, transparency, and the rule of law in resolving the matter.
The Obidient Movement, known for championing justice and accountability, has remained vocal in its support for Farotimi. The group reiterated its commitment to upholding the principles of justice and transparency in Nigeria’s judicial system.
The next hearing in Farotimi’s case is scheduled for January 2025, with supporters hopeful for a resolution that upholds the integrity of the legal process.
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Politics
Breaking: Speaker Obasa Debunks Allegation Of Spending N17b On Assembly Gate
Published
3 days agoon
December 19, 2024Breaking: Speaker Obasa Debunks Allegation Of Spending N17b On Assembly Gate
The Speaker of the Lagos State House of Assembly, Rt. Hon. Mudashiru Obasa, on Thursday described the allegation that the House spent N17 billion on the fixing of a gate as spurious and funny.
A self-proclaimed group, Lagos State Anti-Corruption Coalition, had accused the Assembly of spending the amount to construct a gate. The group also sought investigation of the claim.
Speaking at plenary, Dr. Obasa said the allegation stemmed from the fear of some people over 2027 which is still more than two years away.
Obasa further debunked the claim that the House spent N200 million on its recently organised 22nd thanksgiving service for staff.
“It is so funny. How much is the allocation of the Assembly in the whole year that we will decide to spend N17 billion on a gate? They even claimed that we expended 200 million on thanksgiving that did not hold.
“We are aware that at a period like this when we are approaching elections in 2027, we should expect such things. I think some people are scared and I don’t know why.
“This House did not and has not embarked on any such project. We are not that reckless. We had our thanksgiving last Friday and dignitaries from various parts of the State attended it,” the Speaker said.
Addressing further claims by the group about the alleged relationship between him and the chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, the Speaker denied attending the latter’s screening and confirmation by the National Assembly.
“They said that I was at the National Assembly when they were confirming the EFCC chairman. I want to believe that there are CCTV cameras at the National Assembly to identify those who attended the event. The press must have written about it too. So the group should do more to confirm if I was there.
“This is just to deny the allegations in the interest of the public and not the writers because the writers are not those we should be joining words with,” the Speaker said.
Earlier, the House, through its spokesperson, Hon. Stephen Ogundipe, had addressed the allegations noting that the Assembly bases its activities on integrity, transparency and accountability.
“It is ludicrous the claim about constituency intervention funds and constituency project funds and their handling by Speaker Mudashiru Obasa and Clerk of the House, Barr. Olalekan Onafeko as claimed by the group.
“One would have expected a self-acclaimed anti-corruption crusading group to do its groundwork before jumping across the fence with conviction that it hit a jackpot to malign an institution of repute in the name of politics.
“Simply put, the Lagos State House of Assembly does not have any such funds. The Assembly does not embark on constituency projects. Instead, once every year, the House holds stakeholders’ meetings simultaneously across the state where constituents have the opportunity to tell the lawmakers their expectations and make requests for the betterment of the state.
“These requests and expectations are compiled and sent to the executive arm of government for consideration as inputs in subsequent budgets. If this is what the group takes as constituency intervention or project funds, we are sure this explanation has given the required education, moreover, it is common knowledge that it is the responsibility of the Executive arm to execute such projects,” the earlier statement by Ogundipe read.
Eromosele Ebhomele
Chief Press Secretary to the Speaker of the Lagos State House of Assembly.
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