Tinubu and the Wisdom of Subsidy Removal
By Sani Danaudi Mohammed
Abraham Lincoln, the sixteenth President of the United States of America, was a myth and a legend. His name is listed for the emancipation of American slaves in both national and international archives. During his administration, the US was divided between pro- and anti-slavery countries. Abraham Lincoln’s military might and statesmanship were the driving forces behind the nation’s triumph. Similar to Lincoln, Tinubu has taken decisive action to enact economic reforms that will liberate Nigerians from the system of modern slavery that has for decades denied them access to power, education, health care, and, most importantly, their welfare.
President Bola Ahmed Tinubu’s declaration that the “fuel subsidy is gone” was his first bold and wise move as president of Nigeria, and it was the first thing that welcomed him to office. Oil marketers and fuel station managers changed their business practices in less than a day, raising the price per liter of gasoline. Like Abraham Lincoln, Tinubu is the 16th President of Nigeria. This is not a coincidence, nor a fabrication; rather, Nigeria should consider itself fortunate to have a president who does not shirk accountability for his important choices or shirk the difficult work that lies ahead.
The nation’s only supplier of finished goods, the Nigerian National Petroleum Company Limited, unveiled a new gasoline pricing template the following morning. It increased the price of gasoline at the pump by more than 200%, from N195 to between N480 and N570 per litre. The All Progressives Congress (APC) fulfilled one of its campaign promises during the general election campaign of 2023. A key pledge made by all of the front-runners for president was to abolish fuel subsidy programs.
In addition to his extensive experience in the private sector, he was a former senator and the executive governor of Lagos State. Undoubtedly, Tinubu’s robust foundations facilitated Lagos State’s rise to prominence as Nigeria’s industrial center, and consequently, to prominence across Africa.The cornerstone of a leader’s journey, his wisdom is a bright beacon of discernment. Notwithstanding the short-term negative effects on the economy, President Tinubu was able to see past the obvious and recognize the subtle nuances of human experience and the intricate dynamics of the world, which indicate that Nigeria is dozing off and on the verge of economic collapse.
This is the reason why President Tinubu announced the elimination of fuel subsidies on his first day in office in order to dispel the myths that surfaced after former President Goodluck Ebele Jonathan withdrew fuel subsidies in 2012, forcing him to revoke his previous decision. Removal of subsidies will go down in history as one of the wise choices made by him and other Nigerians who have leafed through the country’s economic records, we would all agree. Recognizing the vast mysteries that are beyond our comprehension, he forced himself to embrace the wisdom of uncertainty. With the help of this sharp perception, wise choices were made, and the turbulent waters of leadership were navigated with grace to pave the way for the emergence of a new Nigeria where a select few enjoy privileges and waste money intended for the vast majority of Nigerians.
Because fuel subsidies are a source of waste and leakage, the IMF and World Bank have consistently advised Nigeria not to keep them. The subsidy regime was unsustainable, according to economists in Nigeria as well. It was only advantageous to a small group of wealthy people and could be used as a means of arbitrage or to smuggle gasoline into nearby nations. The Petroleum Industry Act (PIA), which was passed with the specific intention of establishing a legal and governance framework to direct operations in the oil and gas industry, also gave the topic official legal status. By 2021, the subsidy regime was supposed to end according to the PIA’s principles.
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In the 1960s, Martin Luther King Jr. said, “Injustice anywhere is a threat to justice everywhere,” speaking out for the rights of people of color in the US. Mahatma Gandhi, the renowned proponent of nonviolent resistance against oppression, characterised nonviolence as the most powerful tool available to humanity. President Tinubu is credited with making reasonable remarks about the need for Nigerians to breathe, and the myths surrounding his administration’s economic reforms need to be disregarded. The people responsible for the current economic conditions have long oppressed the average Nigerian, and they are also fighting against this policy. Millions of Nigerians were forced into slavery under subsidy regimes that primarily benefited a small number of wealthy individuals. Today, millions of these people are demanding justice and many are taking on sympathetic roles even though they are the main cause of the issue.
To be clear, President Tinubu never pledged to maintain the disastrous subsidy regime if elected; rather, one of his main campaign pledges has been fulfilled by his current stance on them. Being unable to distinguish between the two terms, politics and governance, is Nigerians’ greatest issue. Why if it is Peter Obi and Atiku announced removal of subsidies? Will Social media continue to be as busy handles as they are now? Removing the fuel subsidy is unquestionably one of the most audacious political decisions any democratic government has made since the fourth Republic was restored in 1999.
From HRH Sunusi Lamido Sunusi, the 14th Emir of Kano and a former governor of the Central Bank of Nigeria, who had the guts to explain how the nation ended up in its current economic situation.As far as I am concerned, President Bola Tinubu has nothing to do with the current crisis; for eight years, we were living a fictitious life while heavily indebted to both foreign and domestic creditors. The Central Bank of Nigeria owes over N30 trillion, which has resulted in debt service exceeding 100%.
I have read many articles about subsidy removal that focus on the hardships, citing what the high and mighty called “social consequences” that could result from such action. My concern is that they have intentionally refused to provide Nigerians with information about the benefits that will accrue. Senator Godswill Akpabio, President of the Senate, announced last week that each state has received at least N30 billion in the last six months. Although the Deputy Chairman of the Nigerian Governors Forum, Engr. Seyi Makinde, has denied such claims, it is not a myth that the states’ monthly allocations have increased.
Aside from implementing N35,000 weight allowances for Federal Civil Servants, the President has committed significant resources to the procurement of CNG buses to alleviate the suffering of the masses. According to the distribution, sectors such as manufacturing, agriculture, transportation, and business received N500 billion, while workers and selected households received N35,000 and N25,000, respectively, over time. On the other hand, lawmakers’ allocation is N110.2 billion, while the 36 states receive a palliative loan of N185 billion.As part of the quick actions made to lessen the hardship these reforms will cause, these are a few consignments.
In order to receive answers to their inquiries concerning President Tinubu’s inherited legal framework and subsidy regimes, Nigerians must travel down memory lane.Zainab Ahmed, the finance minister at the time, kept reminding Nigerians that the country would run out of money for fuel subsidies after May 29, 2023, as the administration of former president Muhammadu Buhari came to an end. The Petroleum Industry Act of 2021 and the 2023 Fiscal Framework and Appropriations Act, the two pertinent laws, gave rise to an extension that could not be lawfully extended past May 29. That would be a legal infraction to do so. weeks before that administration came to an end.
Thus, “Subsidy is gone” is Tinubu’s declaration of courage and wisdom, setting an example that all of us should follow if we want a better Nigeria that benefits us all. For this reason, the president needs to be protected from the blame for the removal of subsidies even from his political adversaries. Economies with strong histories have overcome some of the worst setbacks. It is true that Nigerians are struggling to feed themselves, but only a criminal can justify attacks on silos and trucks transporting goods. That much is certain: everyone has a shared obligation to acknowledge the fact that restoring Nigeria to its former splendor is a shared responsibility. The matter at hand concerns Nigeria’s future, not President Tinubu.
I will sum up by saying that using the same formula over and over again will not produce different results. Nigerians now have a president who knows the path, so the current formula will undoubtedly lead us to our destination.
Danaudi, A Public Affairs Analyst and Columnist writes from Bauchi via [email protected].
