The Nigerian media is pregnant with allegations of corruption in the Nigerian National Petroleum Corporation (NNPC) and, by extension, in the administration of President Goodluck Ebele Jonathan. The unfortunate situation started when recently suspended Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi told the Senate Finance Committee that the NNPC has misappropriated $20 billion, implying that a huge part of the unremitted funds came from the continuation of the subsidy on kerosene regime in defiance of a presidential directive ending it. However, it is quite disturbing that many Nigerians fail to look at the issue logically before ‘casting stones’.
First, it is simply wrong, even unfair to blame this administration for something that started before their time. Most of us seem to forget that the directive to stop subsidy was given in 2009. Therefore, if there was a criminality involved in the matter, it started in that administration by ministers who continued to operate the subsidy.
If truth be told, the presidential directive at that time was not well handled and does seem worrisome. The directive to, “Eliminate existing subsidy on the consumption of kerosene, taking into account that subsidy payments by government, on kerosene do not reach the intended beneficiaries. Public announcement of this measure should be avoided”; has so many things wrong with it. For, even if it were constitutionally correct to hide subsidy removal from Nigerians, it is morally wrong to do so. It is only proper for the people who will bear the brunt of such removal to be part of the decision or, at least, to be informed about it. NNPC is well in their right to follow existing protocol, which in many ways has helped alleviate the suffering of the masses. Everyone has experienced unprecedented access to fuel products in the country. The long queue for petrol is gone! Cars are no longer breaking down on the highway as a result of purchasing geri-can fuel! Kerosene stoves are no longer exploding! Really what are we talking about here.
One very important question that we must ask ourselves is whether it is possible for kerosene price to remain high despite subsidy on the product. The answer is yes. According to the President of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Alhaji Aminu Abdulkadir, the problem is that of high demand chasing low supply, since the quantity subsidised is not sufficient to meet the needs of kerosene consumers. He further revealed that: “About 7 to 10 million litres are supplied but our national consumption today is about 15 million litres. There is a shortfall in supply; hence people think the subsidy is not reaching the people. There is subsidy”.
In addition, as the management of NNPC had said, the diversion of kerosene to neighbouring countries, industrial use, aviation fuel and pipeline vandalism have contributed to the scarcity of the product for domestic usage. During a two-day investigative public hearing on supply, distribution, expenditure and subsidy on kerosene, the Group Managing Director of the corporation, Engr. Andrew Yakubu, pointed out that: “There are quite a number of competing demands for kerosene and until these are addressed by other relevant agencies, the issue of kerosene not being readily available for domestic use will continue to reoccur every now and then”. Both he and Mr. Momoh, the Managing Director of PPMC, both argued that the committee should “collaborate with the NNPC to encourage the sale of liquefied petroleum gas otherwise known as cooking gas” as a viable option to the populace.
Another question that Nigerians should ask instead of allowing sentiments becloud their judgment is whether the NNPC, as sole importer of kerosene is acting in line with government’s directives. Without fear of contradiction, the NNPC has been supplying kerosene at 40.90/litre thus maintaining a pump price of N50/litre of kerosene at all its stations nationwide since 2009 as charged by the government. If this is the case, it is wrong to blame the NNPC since the duty of policing marketers to ensure the retail price of N50/litre lies squarely with the regulatory agencies.
As expected, some individuals and even groups are calling for the removal of kerosene subsidy. This is surprising, considering what we experienced in 2012 when the government attempted to remove petroleum subsidy. The nation was thrown into disarray, as the nationwide protest almost turned to mayhem.
Surely, pushing for the removal of kerosene subsidy is tantamount to inviting unrest as it is bound to lead to further hardship on the impoverished masses. It is therefore not surprising that people are beginning to think that practically every thing about the oil sector is politicised. And that any plan to remove kerosene subsidy is a ploy to cause uprisings and even destabilise this administration.
As a nation, we must not allow mischief to take the place of logic. Agreed there is a lot of poverty in our land; but the only way to ensure tangible results is by logically and dispassionately looking at issues that affect our collective destiny. Anybody can say anything, especially at a time like this when some people can do anything to ensure a place in the next political dispensation come 2015; but it is our responsibility to find out the truth or falsity of such claims.
In 2012, the House of Representatives Ad hoc Committee probing the fuel subsidy regime made copious reference to this same presidential directive removing kerosene subsidy; therefore one wonders why all the hullabaloo as if it was something that was hidden and known to the NNPC alone.
Surely, there is a lot of mischief in the matter, and more disturbing is the fact that we seemed to have allowed ourselves to be taken for the ride. There is only one important fact to deal with here: let the regulatory agencies do their job and keep the pump price of kerosene within reasonable limits. If anyone cares to listen, what matters to Nigerians is how they can gat access to affordable energy sources be it kerosene, LPG, Power etc not all this political blame game.
John Chidozie
No comments:
Post a Comment