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Fuel Subsidy Removal: A Paradigm Shift for Nigeria’s Development

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In a nation grappling with the persistent challenge of eliminating fuel-based subsidies, Nigeria stands at a crucial crossroads. Since the inception of fuel subsidies in 1970, successive governments have attempted to remove them, only to be met with stiff political complexities that have allowed the subsidy to persist for a long. However, the time has come for decisive action.

President Abimbola Ahmed Tinubu in his inaugural speech declared an end to fuel subsidy in an unambiguous word “It has gone for good”. To put an end to the government’s continuous subsidizing of fuel, will mark a significant domestic policy shift if it’s become successful. As the nation braces for the potential repercussions, citizens are faced with a critical question: Is Nigeria better off with or without fuel subsidies?

The debate surrounding fuel subsidies has always been fraught with controversies and conflicting interests. Critics argue that fuel subsidy has overstayed its usefulness, draining exorbitant amounts of money from governments’ lean purses year in, in, and year out-without significant impact on the lives of ordinary citizens it meant to benefit. Instead, these subsidies often end up benefiting individuals and independent marketers, exacerbating inequality and inflation in the process. Over the years, the removal of fuel subsidies has always sparked explosive situations and protests from Lagos to Kano, Benin to Abuja fueled by the elite, who manipulate the grievances of citizens to achieve their objectives.

Yet, the government argument or those in support has always asserted that by redirecting the funds saved from subsidies into education and health, the masses will benefit more directly. The promise of reinvestment in sectors that have a tangible impact on citizens’ lives holds the potential for transformative change. However, concerns remain about the immediate consequences of subsidy removal, especially for low-income earners who constitute the majority of the country’s populace and will bear the brunt of increased fuel prices and a subsequent rise in the cost of goods and services.

In my analysis, the removal of fuel subsidies presents both challenges and opportunities for the Nigerians and the Nigerian government in the short and long run. It is a complex domestic policy that requires careful consideration and effective implementation, if failed the masses will bear the brunt, if it becomes successful, the government bears the credit. However, with the right approach, it can lead to long-term benefits and positive outcomes for the country.

To effectively navigate this transition, the Tinubu lead government must address these fears head-on and build trust among the people. Firstly, the government must be proactive, swift, and effective in handling its interventions in the form of palliatives for the poorest of the poor that is necessary to cushion the effects of rising food prices and the overall cost of living that will accompany this major domestic policy shift or else it will sink the administration. Additionally, the government should consider temporary measures, such as opening the borders to flood the market with affordable food items, while also engaging transport associations and owners to prevent exorbitant fare hikes that would burden the citizens beyond their means.

Beyond these immediate actions, a comprehensive and sustainable approach is essential to prevent sinking citizens further into poverty, instead, the government should roll out measures targeted toward bringing significant portions of the population out of poverty and improving their overall well-being. This includes enhancing social welfare initiatives, improving public service delivery, investing in healthcare, providing adequate wages, and implementing unbiased empowerment programs. By focusing on these areas, the government can foster entrepreneurship that will further reduce the effect of fuel subsidy removal and create a more equitable society.

Furthermore, the government must prioritize transparency and accountability in the management of resources. It should ensure that the funds saved from fuel subsidy removal do not end up in the pocket of individuals but rather are channeled effectively into sectors that directly benefit the masses. To achieve this, a clear policy mechanism by civil societies organization and organizations like BudgIT should be empowered to track and monitor the utilization of these funds, preventing any mismanagement or misappropriation.

To successfully navigate this transition, effective communication, and public enlightenment campaigns are paramount. The rationale behind fuel subsidy removal and the long-term benefits must be communicated to the public, managing expectations and reducing resistance. Collaboration with civil society organizations, labor unions, and other stakeholders is crucial in developing comprehensive social safety nets to protect the most vulnerable from potential negative impacts.

In the same vein, as part of efforts to revitalize the nation’s oil and gas industry, the government should immediately consider outright concession or privatization of the dormant refineries. This would pave the way for improvements, efficiency, optimization, and commercialization by private investors, bringing these refineries back to life. This government cannot afford to embark on another futile round of Turn Around Maintenance, which has consumed trillions of dollars without yielding results under previous administrations. By doing so, with the addition of the nation’s four refineries with capacities of 600,000, 150,000, 125,000, and 110,000 barrels per day, along with the largest single train Dangote and BUA refineries, fuel would become more accessible and affordable.

However, before reaching that stage, the government must effectively manage the consequences of fuel subsidy removal and alleviate the multidimensional impacts it would have on the country’s limited resources, as it could prove to be a challenging task. If the subsidy is removed, it will inevitably lead to a significant increase in the prices of goods and services across the country, disproportionately affecting low-income earners in terms of transportation costs and quality of life, that’s it become expedient to flood the market with affordable food items by opening the border temporarily.

Similarly, the new government must not pay lip service to diversifying the economy, by promoting and supporting sectors such as agriculture, manufacturing, and technology, the government can create a more balanced and resilient economy. This will not only generate job opportunities but also reduce the vulnerability of the economy to fluctuations in oil prices, ultimately contributing to sustainable and inclusive growth. These are critical steps toward building a more resilient economy. This comprehensive approach will help lift a significant portion of the population out of poverty and improve their overall well-being.

One crucial lesson to be learned from past experiences is the importance of prioritizing social welfare initiatives. The government should draw inspiration from the Jakande administration, which focused on enhancing public service delivery in various sectors. Affordable and accessible housing options should be prioritized to address the housing needs of the less privileged, ensuring that they have a secure and dignified place to call home. Instead of constructing luxurious mansions in exclusive areas, the government should redirect its resources toward building affordable homes in areas where the poor can afford to reside.

Also, investments in the healthcare system are of paramount importance to provide quality and accessible healthcare services to all citizens, especially the underprivileged while adequate wages must be provided to workers across various sectors to ensure that they can afford a decent standard of living and support their families. Well-structured education is vital in equipping individuals with the necessary skills and knowledge for personal and professional growth, leading to improved socioeconomic conditions.

Lastly, effective regulation and oversight are necessary to ensure fair and accessible services for the citizens, particularly in sectors such as transportation. Monitoring mechanisms should be put in place to prevent exploitation and profiteering by private entities, ensuring that transport fares remain reasonable and affordable even without fuel subsidies. Investing in an efficient and affordable public transportation system will not only alleviate the financial burden on low-income earners but also contribute to decongesting the cities and reducing pollution.

In addition to these measures, transparency, and accountability in the management of resources are crucial to building trust and confidence among the citizens. The government must ensure that the funds saved from fuel subsidy removal are directed toward sectors that directly benefit the masses, such as education, healthcare, and infrastructure development.

In conclusion, the removal of fuel subsidies represents a paradigm shift in Nigeria’s development. By adopting a comprehensive and sustainable approach that prioritizes social welfare, economic diversification, transparency, and effective communication, the government can successfully navigate this transition. It is crucial to ensure that the benefits of economic growth reach all segments of the population, particularly the most vulnerable. With careful planning, implementation, and collaboration with stakeholders, Nigeria can forge a path toward a more equitable and prosperous future for its citizens.

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Re: Adekambi vs Alli: Dr. Olanrewaju’s Descent To Soliloquizing | Sola Abegunde

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I have read Dr. Sulaimon Olanrewaju’s piece titled ” Adekambi vs Alli: Between Substance And Sensationalism” and it offers me a lot of entertainment.

Dr. Sulaimon Olanrewaju is a seasoned Journalist no doubt. Very brilliant mind, but, he needs a lecture on politics and governance.

No matter how educated or professional you could be, if you lack basic knowledge about raw politics and governance at different tiers of Government, you are bound to struggle like a fish out of the water each time you attempt to defend certain positions.

Very obviously, Dr. Olanrewaju doesn’t know how a Local Government should operate on a normal situation, even, before the Judgment of the Supreme Court obtained by president Bola Ahmed Tinubu.

I will refer Dr. Olanrewaju to a document titled ” Financial Memorandum for Local Governments”.

That document speaks to how funds belonging to the Local Governments could be legally spent.

It will also provide accurate information about the roles and powers of the Local Government Chairmen, Head of Local Government Administration, the Finance and General Purposes Committee, F&GPC, how approvals for funds, projects and how contracts are signed at the Local Government level.

Had it been that Dr. Olanrewaju had proper information, I am sure that he wouldn’t have advertised his ignorance the way he did, in the argument about Financial autonomy for Local Governments which Senator Sarafadeen Abiodun Alli is promising.

He would also have known that his Principal, Governor Seyi Makinde had been engaged in criminal activities in the manner he had been withdrawing and spending resources belonging to the 33 Local Governments illegally since 2019.

Perhaps I need to repeat this for emphasis sake. There is no Law that empowers a state Governor to withdraw money belonging to the Local Governments for the execution of projects on behalf of the Local Governments.

The fact that the monthly allocations for the 33 Local Governments would have to drop on a joint account does not confer any authority on a state Governor to illegally withdraw and spend same.

It is the responsibility of the F&GPC for each of the Local Governments to identify projects it wants to execute, approve funds for same and if the funds are beyond the approving limits of the F&GPC, it will seek approval from the Governor through the office of the Commissioner for Local Governments.

If the project would be executed as a contract, it is the sole responsibility of the HLGA to sign the contract agreement.

That is what Senator Sarafadeen Abiodun Alli is saying. That he would not make illegal withdrawals from the Local Governments funds. That he will allow the F&GPC for the 33 Local Governments to function without hinderance. That he will allow the Career officers to do their duties assigned to them by Law.

If Governor Seyi Makinde doesn’t believe in the existence of the Local Governments and he is not hiding this fact and Sarafa Alli is saying, I believe in a functional and free Local Government, where is the sensationalism in that?

Truth hurts. Dr. Olanrewaju can not, through his essay, which I consider an afterthought, rewrite the fact that, his Principal publicly declared that he doesn’t believe in the existence of the Local Governments, not to talk of allowing them to function freely.

I am surprised that Dr. Olanrewaju is of the opinion that Senator Sarafadeen Abiodun Alli is not saying what he would do differently.

I know that the Special Adviser on Media to Governor Seyi Makinde is not deaf. Neither is he blind or dumb. He is only being hypocritical.

How else does the Allied People’s Movement, APM and its Gubernatorial candidate want the All Progressives Congress, APC Gubernatorial candidate to say what he is going to do differently?

On this issue of Financial autonomy for Local Governments, Sarafadeen Alli is saying, contrary to the illegalities of the past seven years plus, he will not concern himself with the responsibilities that are ordinarily that of the Local Governments.

On Education, he has declared that he will ensure that we go back to the 30 Pupils per classroom policy of the former Governor, Senator Rasidi Adewolu Ladoja, now, H. I . M, Oba Senator Rasidi Adewolu Ladoja.

He said he will revive the Broadcasting Corporations of Oyo state, BCOS which is gasping for breath under Governor Seyi Makinde.

He was emphatic about the fact that he would set up a Committee to review the crisis created at the Circular Road by Governor Seyi Makinde within 72 hours when he is elected as the Governor of Oyo state.

He said he would review the sales and handing over of our Farm Settlements to Estate Developers amongst other promises.

On these issues, what are the clear positions taken by Adekambi?

If Dr. Olanrewaju wants us to believe his cock and bull stories about the performance of the 33 Local Governments under Seyi Makinde, I challenge him to ask his Principal to publish the statement of income and expenditures for the 33 Local Governments in the past seven years plus.

He should give us a breakdown of the total figure of the monthly allocations received on behalf of the 33 Local Governments, the breakdown of salaries and allowances paid, the number of projects executed, identities of the contractors who handled projects, the contract agreements, total figure of the Internally Generated Revenues, IGR received by the Local Governments and the VAT.

In the absence of these vital information, which I am certain they will never dare to make public, I want to humbly suggest that Dr. Olanrewaju should go and update his knowledge about how certain things are done.

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Ladoja @82: When the ladder becomes too tall and Makinde’s sin of ingratitude | By Ayinla Joseph

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The Yoruba say, when a man forgets the ladder that took him to the top of the iroko tree, the fall that awaits him will be narrated as a proverb.

On Thursday, Ibadan stood still for its king. Oba Rashidi Adewolu Ladoja clocked 82. Not 82 years of mere age, but 82 years of bruises, battles, betrayals and benediction. A former Senator. A former Governor. An elder statesman who, like Oduduwa, returned as king. The following day, Friday, Oba Ladoja also clocked one year on the throne of his forefathers.

Ibadan celebrated him. Nigeria celebrated him. The Presidency sent greetings. Former governors knelt. Serving governors bowed. The Alaafin of Oyo paid tribute. The Soun of Ogbomoso poured libation of words. Even the Aseyin, far in Iseyin, bought a full page in a national daily to say: our father lives.

But in Agodi Government House, there was silence. Cold, deliberate, imperial silence.

Governor Seyi Makinde did not felicitate his king. No advert. No statement. No courtesy of any sort extended. Nothing. His protégé, Bimbo Adekanmbi, toed the same line of contempt. For 48 hours, Ibadan people waited for a word that never came, until shame forced a whisper.

We must ask: what manner of politics is this?

In 2019, it was this same Ladoja who held Makinde’s hand when Makinde had no hand to hold. It was Ladoja who coordinated the coalition, who gathered the angry, the broken and the hopeful, and stitched them into a garment called victory for a man who had never won anything before. Without Ladoja, there would have been no Omituntun in 2019. And the man knows it.

Philosophers call it the Paradox of Power. Machiavelli warned about it in “The Prince”: that power acquired through the mercy of others must be sustained by gratitude, otherwise it consumes itself. Plato called such rulers philosopher-kings who failed philosophy. Men who know how to win power but not how to carry it.

History is littered with them.

Emperor Nero of Rome who burnt the city that made him emperor. King Rehoboam in the Bible who told the elders who made him king: “My little finger shall be thicker than my father’s waist.” Emperor Commodus who thought Rome was his father’s farm and turned the palace into a circus until the circus swallowed him.

Seyi Makinde governs like them — as an emperor, not as an Omoluabi. A man who believes loyalty must flow upwards to him, but must never flow downwards from him. He rides on the shoulders of giants and then complains that the giants are too tall.

Today it is Ladoja he snubs. Yesterday it was the Alaafin. The day before, the Soun. Tomorrow, which Oba will taste his disdain? He has transferred his personal hatred for the Olubadan stool into a war against all royal stools in Oyo State. That is not politics. That is poison.

And what shall we say of Bimbo Adekanmbi, his political son, who has learnt this ignoble art of ingratitude so perfectly? The Yoruba say, “the child who says his mother will not sleep, he too will not sleep.” To watch a man seeking to be governor practise contempt for the throne he seeks to govern is a disaster foretold.

Oyo people know Omituntun 2.0 for what it is — a poisonous pill coated with sweet advertisement. If 2.0 can openly humiliate an 82-year-old first-class monarch who made him, what will Omituntun 3.0, headed by his anointed, do? It will be the unkindest cut of all. It will be the complete desecration of the Omoluabi ethos that Ibadan and Oyo hold sacred.

Seyi Makinde will be remembered. Not for the roads that crack before commissioning. Not for the parks that lead to nowhere. He will be remembered as the governor who rode on the backs of eminent men and made every one of them regret that they ever lent him their shoulders.

Ladoja at 82 needs no advert from Agodi to be great. The king’s greatness is not conferred by the governor. But the governor’s smallness is exposed by how he treats his king.

Oyo people, shine your eyes. This affliction must not rise a second time.

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Makinde Deserves No Sympathy: He Brought His Present Predicament Upon Himself

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In response to my brother, Shuaib Idris, who wrote the piece titled “Seyi Makinde Deserves Our Sympathy,” I submit that Seyi Makinde does not deserve our sympathy. How do you sympathise with somebody who brought political calamity upon himself?

There is a point in every political journey when a leader must pause, look around and ask himself a difficult question: How did I get here? For Governor Seyi Makinde, that moment has long arrived.

Much has been written and said about the governor’s increasingly combative public interventions, his exchanges with political opponents and his determination to market the candidacy of his preferred successor. Some have interpreted these developments as signs of pressure surrounding him. But sympathy, in this circumstance, may be misplaced.

If Governor Makinde is under pressure today, much of that pressure is self-inflicted. If his administration is now being subjected to increasingly intense scrutiny, he cannot reasonably blame those asking the questions. And if political opponents have become emboldened enough to challenge his record openly, he should perhaps examine the decisions and conduct that have created the circumstances in which those challenges are now flourishing.

The governor’s recent political conduct provides ample illustration.

At the 70th birthday celebration of Bishop Francis Wale Oke, the governor reportedly used his appearance to introduce Bimbo Adekanmbi, the APM governorship candidate whom he supports. Adekanmbi’s emergence as the APM candidate is not in dispute; the party adopted him as its consensus candidate in May.

Two things continue to haunt him: his subpar performance in office and what critics describe as his imposition of Adekanmbi and Open Salawu, new entrants into his team, on his “first eleven.”

The question, therefore, is not whether Governor Makinde has the right to support a candidate. He does. The question is why a governor who repeatedly speaks of his administration’s achievements appears increasingly eager to make the 2027 succession contest a personal project.

A governor nearing the end of his tenure should ordinarily be concerned about preserving the dignity of the office, defending his record with facts and allowing his preferred candidate to present his own credentials. Indeed, Adekanmbi himself has publicly said he would not be a political stooge and that he would take responsibility for his own decisions if elected. That is political rhetoric. However, everything about Adekanmbi, according to his critics, points to the possibility of his being a stooge waiting to be planted to do Makinde’s bidding after the latter leaves office in 2027.

Yet Governor Makinde has increasingly inserted himself into the political conversation surrounding his successor. That creates an unavoidable question: if Adekanmbi is sufficiently qualified and politically prepared to succeed him, why does the governor so frequently feel compelled to fight the successor’s battles himself?

This is where the argument about pressure becomes particularly relevant. Political pressure does not simply descend from heaven. It can be generated by the choices of the politician himself.

Consider the recent exchange with Senator Sharafadeen Alli over the legal profession. Governor Makinde reportedly questioned Alli’s experience as a lawyer, arguing that he had never entered a courtroom. Alli’s campaign organisation subsequently responded by detailing his legal background and professional experience.

There is nothing wrong with political candidates examining one another’s records. That is part of democratic competition. But reducing a lawyer’s professional identity to courtroom appearances is a curious line of attack, particularly when the political argument ought ultimately to be about competence, experience, policy and public record.

A lawyer can practise in several areas of the profession without making litigation the centre of his career. Administrative work, corporate practice, legal consultancy, governance and institutional management are among the possible avenues available to members of the profession.

The larger point, however, is this: when an incumbent administration turns the professional credentials of an opponent into a central campaign issue, it invites its own record to be placed under the microscope. So, why does he need to be sympathised with over what he brought upon himself?

The response from Alli’s camp has shifted attention towards questions about Makinde’s own record as an engineer and governor, particularly the controversy surrounding diesel-powered streetlights and the renovation of the Lekan Salami Stadium. Those are now matters of public political debate, with competing claims about expenditure and performance. How do you sympathise with someone who threw a stone and received a Scud missile?

This is the unavoidable consequence of political combat: once you open the door to scrutiny of another man’s credentials, you should expect yours to be examined with equal intensity. Governor Makinde cannot reasonably demand immunity from the same standard he applies to others.

The same principle applies to his much-advertised “first eleven.” If the governor describes his administration as being driven by a carefully assembled team of exceptional people, the public is entitled to ask what became of that team when the question of succession arose. Why was the search for a successor extended beyond this celebrated first eleven?

A football coach who constantly boasts about his first eleven naturally invites the question of who among that eleven can step forward when the captain leaves the field. If none is selected, his team’s fans will ask why. That is not persecution. It is accountability.

There is another issue the governor should confront: political loyalty. Governor Makinde did not arrive at the Government House in 2019 in isolation. His political journey involved alliances with people and groups who contributed to the coalition that eventually produced his victory. The political history of that period is well known and should not be rewritten simply because former allies and associates are now on different sides of the political divide.

The problem with “use and discard” politics is that yesterday’s ally eventually becomes tomorrow’s witness. People who helped build a political structure do not disappear simply because their usefulness has expired. And when they begin speaking, the politician who once relied on them may find himself answering questions he never anticipated.

That appears to be part of the political atmosphere surrounding Governor Makinde today. His confrontation with traditional institutions is another matter that requires careful reflection. Whatever one’s political affiliation, Yoruba traditional institutions occupy a distinctive place in the cultural architecture of Oyo State. Political disagreement with individual traditional rulers is legitimate; treating the institution itself with disdain is entirely wrong, and it raises questions about Makinde’s Omoluabi values.

A governor may disagree with a monarch’s political preference. He may even believe traditional rulers should remain politically neutral. But the language employed in expressing that disagreement matters.

The office of governor carries enormous constitutional authority, but it also carries a moral obligation to exercise restraint. A governor should not need to be reminded that words spoken from Government House do not remain personal words. They acquire the weight of the office. That is why some of Governor Makinde’s recent public exchanges have generated such controversy.

The irony is that political power is temporary, while institutions and relationships often outlive individual office holders. The governor should know this better than most.

He is approaching the end of his constitutionally permitted tenure in Oyo State. The political question before him is therefore not how to remain governor indefinitely, but what legacy he will leave behind. Will he be remembered primarily for the projects executed under his administration? For the policies introduced? For the institutions strengthened? Or increasingly for the political battles fought during the final phase of his tenure? The last question is what will occupy people’s minds most after Makinde has left office.

The most consequential political mistake an incumbent can make is to interpret every criticism as persecution and every opponent as an enemy. Criticism is not necessarily hatred. Opposition is not necessarily sabotage. Questions about public expenditure are not necessarily attacks on a person. And scrutiny of an administration is not evidence of an organised conspiracy.

A mature government answers questions. A confident administration publishes records. A secure political movement allows its candidate to speak. And a governor who believes his record speaks for itself should have little reason to spend every available political moment speaking for his preferred successor.

That is why sympathy for Governor Makinde is evidently misplaced. The political pressure surrounding him today is not simply something that happened to him. It is also the product of political decisions, alliances, rhetoric and strategies that he and his political associates have consciously pursued.

He chose his successor. He chose his political platform. He chose to engage his opponents. He chose to make their records a subject of public debate. He chose to defend his administration through increasingly political exchanges. Those choices have consequences.

The electorate is now watching. And when the people begin to ask questions, the appropriate response from a governor is not to complain about pressure. It is to provide answers. Oyo people do not owe any politician sympathy for the consequences of his political choices. They owe themselves something far more important: a careful examination of every candidate, every record, every promise and every claim before making their decision in 2027.

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