AFCON 2023

Democracy, deregulation and subsidy – Tribune Online

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Democracy is participatory governance, often traditionally established through partisanship and the instrumentality of people. Democracy is widely embraced as a form of popular governance in most parts of the World. Democracy is, however, not the best form of governance, though, it implies large-scale civil participation. In Democracy, majority determines the winner but majority is not always right. There are numerous iniquities in partisanship which produces Democracy. Nigeria’s Presidential Democracy would have fared better had many credible, competent and knowledgeable electees occupied strategic positions in governance. Oddly, politics has been hijacked by wealthy but mainly people of unrefined minds and untamed passions. Our perverted presidential system feeds directly into a culture of corruption, frivolity, ineptitude and impunity. It majorly and rapaciously drains resources. Doing for the citizens what they cannot do ordinarily on their own for themselves is the very essence and justification of governments at all levels. When representatives become government with interests opposed to the represented, the government is separated from its citizenry and thus effectively disenfranchised. Nigeria’s democracy exists for those in government and the business class excluding the vast majority of Nigerians who see themselves in pernicious inter-generational-poverty. One of the greatest lawyers, England ever produced, Lord ISHAM, described Nigeria’s democracy as “an elected dictatorship”.

Nigerians have no democracy yet but civil rule in which indiscipline largely prevails. Initially, from 1999 to 2015, a period under three Presidents, the leaders shamelessly presided over a weak Democracy in which the State was gracious enough to rig in elections. The regular refusal to accept the verdict of the electorate through fair, free, peaceful and credible balloting created unstable political situation which did not give Nigeria opportunity to develop. Many politicians use Public office against the public good. Parliamentary system is better, simpler, easier, less costly and more accountable. Ours is the world’s most preposterously wasteful and most recklessly expensive democracy. In nine years, from 1999 to 2007, Federal Government, States and local councils consumed eighty trillion naira. Fifty-six trillion naira out of the eighty was for salaries and allowances of Public office holders mainly politicians. A Nigerian Senator earns six times what an American Senator earns and four times what a British Parliamentarian earns monthly. A Nigerian Senator earns N21 million monthly as salary plus allowances and other benefits. The 469 Legislators in NASS are reportedly known to have routinely consumed annually one quarter (1/4) of the National budget. The deliberate desire for unholy continuity in governance though unprogressive has made many Nigerian elite politicians to have replicated replaceable tendencies nationwide. They have continued to disallow young people under them and others with potentials to grow politically into maturity, relevance and fame. In Nigeria, where Democracy is seriously financially abused, there is indiscipline, hardship, hunger, poverty, unemployment, underdevelopment, pain, lamentation and despondency. Currently, Government seemingly ignores the primacy of merit principle, abhors constructive ideas, jettisons knowledge and abandons experience. Nigeria wants suitable Nigerian men and women who are healthy with unassailable integrity, creative, competent, disciplined, patriotic, productive, resourceful and strong in intellect in positions of Authority in whom the future of the country will be entrusted. There are no losers in democracy but democratic survival here will depend largely on effective performance, diligence, integrity, commitment and patriotism.

The discovery of crude oil by Shell BP in Oloibiri Village on 15th June, 1956 in current Bayelsa State and its subsequent exploration and exploitation shot Nigeria into global visibility. Crude oil is liquid and is a lucrative International economic business.  The Nigerian crude oil has been deregulated. Deregulation as a policy of some strategic economic areas in a country with due flexibility is desirable for development and national growth. In Nigeria, its implementation is faulty as it has absolutely no conception of general good for citizens. The only people the policy works for are those the President himself chooses to help, the wealthy and the well-connected who are working in oil companies. Deregulation has mainly benefitted the wealthy, precipitated job losses, stimulated high prices for petroleum products, high costs for education, expensive health care delivery Services and turned many citizens into penury. Besides, the deregulation of the Downstream Oil Sector by the Federal Government which surrenders the Country completely to exploitation and sheer market forces is the worst domestic Policy mistake in Nigeria’s political history. Nigeria is wrongly deregulated.

Each successive Administration promised to use the “subsidies” to work “wonders” in the social and economic lives of Nigerians. Each Administration left Nigeria worse than it met her because the inflation that followed the removal of the so-called subsidy progressively crippled businesses, heightened the crisis of unemployment, reduced the quality of life, fuelled inflation and exaggerated the problem of insecurity. Truly, barbers, hair dressers, welders, vulcanisers and others use petrol on a daily basis to stay afloat in their businesses in a Country that cannot provide electricity for basic needs. It is common knowledge that what the Government has always designated as “subsidy” is nothing but the cost of corruption. If the price of petrol rose progressively from nine kobo (9k) to N97 in 35 years and the “subsidy” not only remains but has also continued to grow, it should be apparent that what has to be removed is not subsidy but corruption. Another fuel price hike is not subsidy but deregulation and corruption. There is no patriotic reason why none of the four refineries in Nigeria is not working and has indeed not worked for over a decade. Nigeria is misruled.

Nigeria is an OPEC Member. She is among the twelve crude oil exporters in the World but has insufficient refining capacity to meet her domestic fuel needs. Nigeria is heavily reliant on imports of refined petroleum products for which huge sums of money are paid perennially to fastidious importers. Nigeria is the only OPEC Member that imports refined products because her capacity to provide refined products for local (domestic) consumption is corruptly weak. Nigeria has the dubious distinction of being the only major oil producing and exporting Country that cannot produce her domestic requirement of refined petroleum products. Sadly, Nigeria is the only country in the World where crude oil is stolen.  It is a sad addition to Nigeria long list of first positions in the wrong places. There is no justification whatsoever for the oil theft to continue. It is a shame that Government has not stopped it long before now. It presupposes that the Political WILL is lacking and some unpatriotic big men in Government are actively involved. Government has the Artillery, Asenals and Paraphernalia with which to stop this economic sabotage. The continuity of this ugly episode compromises our National Security. Inspite of the hundreds of millions of dollars constantly spent on the turn-around maintenance, the four existing refineries have remained crippled. Consequently, Nigeria resulted to fuel importation even from Countries that do not produce oil. This explains the astronomical increases the Country has experienced in recent years in the prices of petroleum products. The recent novelty of Dangote Refinery is like a Rainbow in the sky. This impressive investment must not be politicised.

NNPC has a notoriously poor honesty record. Corruption and profligacy are rampant in NNPC among oil technocrats. It is desirable to remove the veil of secrecy under which NNPC operates. It is in national Interest for Nigerians to know fairly the working operations of NNPC. Currently, the Oil and Gas Sector Operation is opaque. Oil theft which involves pipeline vandalisation and international criminal conspiracy is rampant in the Creeks in the Oil producing Niger Delta areas. It is a clandestine mechanically engineering operation in which equipment, installation and pipeline facility are undermined and destroyed. Sadly, Nigeria loses over six billion dollars ($6) annually as a result of the unholy activities of big time oil-theft syndicates. The inability of NNPC Management to identity the cartel, associates, conspirators and criminal facilitators responsible for this National economic sabotage is a major failure in its operations. Resources were and are still being grossly misapplied, misappropriated and mismanaged by many lustful Public Office holders. There is no strong accountability in most Public Institutions because many Nigerians in positions of Authority lack patriotism.

lndeed, the price of a litre of petrol was nine kobo (9k) as of September, 1978, that is, 46 years ago when the four refineries were built. In December, 1983, five years after, when Alhaji Shehu Shagari was ousted from Power as President, a litre of petrol sold for twenty kobo (20k). In 1996, a litre of Petrol sold for eleven naira (N11) under General S. Abacha as Head of State. He saved five naira (N5) each out of N11 in the Petroleum Trust FUND (PTF) which he established. He appointed General Muhammadu Buhari who used the funds aggressively to provide Water, Electricity, to enhance Health Care Services (Hospitals, Drugs and Equipment), to build or tar Roads and to fund Education in Nigeria generally. The PTF episode is a success story. A litre is currently sold for NOT less than N900 everywhere in Nigeria by Marketers for a product solely produced by Government. On 29th May, 1999, when General Abdulsalami Abubakar as Head of State handed over to Chief Olusegun Obasanjo, the price had risen to twenty naira (N20)per litre. President Obasanjo in eight years in office raised the price to seventy naira (N70) while President Umaru Yar’Adua reduced the price to sixty-five (N65) but President Goodluck Jonathan increased it to ninety-seven naira (N97) in January, 2012.

The Federal Government did not build any new refinery since 1978 (46years ago) when the four existing but poorly maintained refineries were built under General Muhammadu Buhari then a Colonel and Petroleum Minister with Permanent Secretary Prince Solomon AKENZUA and Gen Olusegun Obasanjo as Military Head of State. President Obasanjo returned to power with an immense wave of public goodwill on 29th May, 1999 and promised but failed to build any additional refinery during his tenure of eight years when he increased the prices of petroleum products progressively from N20 to N70 per litre. Ideally, each of the six Geo-political Zones should have a Modular refinery that produces at least two hundred thousand barrels a day that can be built in nine months for a cost of five billion dollars ($5bn) only. Nigeria urgently and patriotically NEEDS a functional Refinery. There is gargantuan corruption in NNPCL (Limited Liability Company but an AGENCY of the Federal Government). NNPC has for decades consistently failed Nigerians. Nigeria MUST build at least ONE New Refinery or ensure ONE of the Old Refineries is made functional without further delay.

Prince Oyakhire is a former Military Administrator of Oyo and Taraba states.

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