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The evil of oil subsidy policy by Samuel Johnson

News


By Christy David | ICC News Reporting  Feb 17, 2024 | Home | News | Market 

The implication of the policy actions of the present  administration  subsidy and Naira flotation is grim and multifaceted

Nigeria has tens of millions of vehicles plying  its roads daily, millions of generating sets running daily, and millions of households using kerosene daily. Equally, the nation's aviation industry is growing with many indigenous airlines with fleet of planes flying daily. 

The import of this on the nation's macro- economy is that,  at any one time you start your vehicle in Nigeria, a job opportunity is created for a fresh graduate in Malaysia-  one of the nation's main sources of imported fuel. At anytime a  kerosene stove is lit in Nigeria, the economy of Singapore is impacted. Same way, at anytime an aeroplane takes to the sky in Nigeria, or a generating set is switched on, the national income of nations exporting either aviation fuel, diesel, kerosene etc. to Nigeria get a boost. 

The consequences of this policy direction to the country are the mounting debt profile on account of huge demands for dollars on a daily basis to import petroleum products,  hyperinflation, spike in job losses  and criminality, etc. 

POINTS TO NOTE 

1.First, government must realise that our current economic woes is as a result of energy crisis induced by the unbridled importation of petroleum products, made worse by the huge demand this brings to bear on the nation's foreign reserves on a daily basis. 

2. There is nothing wrong with our refineries. The poor state of our refineries is as results intentional actions (sabotage) by both internal  and external collaborators to perpetually incapacitate the nation's refining capacity.

3. International bodies, including IMF are also collaborators in Nigeria's economic woes. Their subtle pressures on the third world countries, including Nigeria on open market reform given the inherent damaging effects, speaks volume of their insensitivity and  masked desire to see to the total collapse of the third world economy.

SOLUTION

 The attention of Nigerians, the government in particular should be on NNPCL and its leadership, and the corrupt financial institutions used to perpetuate this grand scale sabotage that is bleeding the nation's wealth. 

More than any other thing, government most be intentional, physical and decisive in its approach. 

Severe application of sanctions, if it means  going the Chinese way in applying  capital  punishment most be pursued. To the best of my belief, this   will  put  the nation on the pathway to revamp  its refineries and  optimise its wealth   from oil and gas- a given natural wealth from God to the nation.