By Gidado Ibrahim
Some days back, the polity went into overdrive with hues and cries that trailed the rollout of federal government’s palliatives to cushion the effects of fuel subsidy removal. It has become necessary to shed more light on grey areas because most of the commentaries and reactions I have read so far appears to be based on inaccurate understanding of the palliative as unfolded by the government of President Bola Ahmed Tinubu.
The most regrettable of the reactions by some Nigerians is the Social Safety Net Programme under which 12 million Nigerian families will get N8,000.00 monthly for six months, amounting to N500 billion. They see it as too meagre to pass for a palliative, forgetting that this is just a fraction of the entire package.
The double assurance that this programme will not go the way of others before it is that in order to guarantee the credibility of the process, digital transfers will be made directly to beneficiaries’ accounts and mobile wallets.
It is expected that the programme will stimulate economic activities in the informal sector and improve nutrition, health, education and human capital development of beneficiaries’ households.
For a broader understanding, permit me to bend a little backward to ask this question? Are they objections as regards the collective will of Nigerians for the fuel subsidy to be removed? The unequivocal answer is No! The overwhelming majority of Nigerians favours fuel subsidy removal, with the exception of enemies of the country or the tiny number feeding fat on the subsidy scheme.
Nigerians of fair intentions know very well that removal of subsidy will take stress off the battered finances of the country. By the time the fruits of this programme starts manifesting, Nigerians themselves will label Tinubu as the best president in Nigeria’s history.
In retrospect, despite the significant contribution of oil to the Nigerian economy, existence of subsidy has continued to erode the appropriate benefits that would have accrued to Nigeria. The subsidy on premium motor spirit (petrol) had been in place since the 80’s. As an oil producing nation, the government at that time thought it wise to keep the price of PMS within the reach of common people through implementation of subsidy scheme. This was very thoughtful of the government of the then military head of state, Gen Olusegun Obasanjo.
However, with the passage of time, concatenation of factors and the huge burden the policy has brought to bare on our national budget, coupled with the transparency and accountability questions surrounding the management of fuel subsidy, made the policy to no longer be sustainable.
In February this year, the Group Chief Executive Officer of Nigerian National Petroleum Company Ltd (NNPCL), Mele Kyari, revealed that Nigeria was spending N400 billion monthly. According to him, “N202 per litre multiplied by 66.5 million litres, multiplied by 30 will give you over N400 billion of subsidy every month.” No nation can achieve substantial overall national development under this kind of arrangement.
The good news is that the office of the National Security Adviser (NSA), Malam Nuhu Ribadu, is directly involved in the disbursement. With the person of Ribadu’s pedigree and character, Nigerians shouldn’t expect anything to go wrong with the disbursement. Suffice it to clarify that the N500 billion palliative for 12 million families is part of short term measures.
Concerns about food insecurity have been longstanding in Nigeria, which has also been battling widespread insecurity for several years. In fact, a United Nations report in January projected that 25 million Nigerians were at high risk of food insecurity this year, meaning they would not be able to afford enough nutritious food every day. To mitigate the effects of subsidy removal on food and to address the UN food concern, the Renewed Hope government led by Tinubu has declared a State of Emergency to tackle rising food prices and shortages.
It is so sad that more than 350 farmers were kidnapped or killed in the 12 months up to June 2022 alone, according to a Nigerian security tracking website. But new security measures would mean farmers could return to the farmlands without fear of attacks.
Also to empower farmers, Tinubu has strategically mapped out plans to provide fertiliser and grain to farmers. The president is not unmindful of the incessant attacks on farmers that have made farming unattractive and a nightmare in the last one decade. As part of the plan, there is going to be increased protection for farmers, many of whom have abandoned their land after becoming the target of gangs that kidnap for ransom.
The old issue of creation of a National Commodity Board that will review and continuously assess food prices as well as maintain a strategic food reserve that will be used as a price stabilisation mechanism for critical grains and other food items is top on the president’s agenda.
As the President himself said, “Through this board, government will moderate spikes and dips in food prices”. The government will have to improve infrastructure, ensure sufficient people mechanised storage and transport, fair trading practices, pay sufficient attention to diversification, reduce the yield gap so that production can be made more efficient.
With the above, the president can solve food security by increasing irrigation efficiency, and crop water productivity. He should also encourage social participation, facilitate technical training, research and intensify governance and public sector management.
In1996 the World Food Summit agreed that food security exist when all people at all times have physical and economic access to sufficient guide. Food security is strongest when food is produced and distributed locally. Locally grown food builds the local economy, as funds will circulate to farmers and businesses in the area. This will help build relationships among people, making the society stronger and economically healthier.
It is heartwarming that the president is now handling the issue of food security through the office of the NSA because a nation that cannot feed itself is vulnerable. Hence, he has redirected all matters relating to essential food and water to go under his supervision. It is now the responsibility of the National Security Council, which is made up of the country’s security chiefs and headed by the president to leap into action.
A new era is here for Nigeria and Nigerians. All Nigerians of various interests needs to do now is to put their unflinching faith and support for the Tinubu-led government. He is a man with sound sense of modesty. He wants to leave a legacy, hence, the issue of failing does not even arise.
What the president is doing is strategically recalibrating Nigeria back to the path of sustainable growth and development. Like a woman who carried pregnancy for nine months, go through painful and bitter labour to bring forth a child. By the time the child is grown and start bringing goodies home, the mother will forget all her pains. The foregoing succinctly captures the scenerio in Nigeria at the moment. In essence, No pain, no gain.
Now that the big economic decisions being taken by this government are reverberating around the world: the removal of subsidy; the exchange rate reform, all of that will create a much better investment environment. The least we can do now is criticising the government that’s sacrificing everything to make life better for us tomorrow.
At this point, I urge fellow Nigerians to ignore the analysis of foreign countries on energy, and other economic-related matters as they border on subsidy removal by critics of the Tinubu administration.
For President Tinubu, he should ensure that those involved in corruption with previous records of tampering with funds entrusted in their care should be brought to book. They should not be allowed to go anywhere close to management of the palliatives to avoid unnecessary confusion.
– Ibrahim is director, Communication and Strategic Planning, of the Presidential Support Committee (PSC).