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Programme: CITY TALKS WITH REUBEN ABATI

Time: 12:00pm

Guest: Dr. Nnaemeka Obiaraeri (Development Economist and Investment Banker)

Topic: Managing fuel subsidy savings

Date: 1ST JULY, 2023
                         
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President Bola Ahmed Tinubu made his first official visit as Nigeria’s President to France where he was between June 20^th 2023 and June 24^th 2023. He attended the summit on New Global Financing Pact in Paris, France’ capital.

At the time Tinubu was attending the historic summit, two masterstrokes had been achieved in Nigeria – the removal of fuel subsidy and the unification of the country’s exchange rates.

Oche Egwa in an op-ed in PM News had this to say about this highly strategic meeting where he wrote: “The two decisions taken on the nation’s economy made President Tinubu a toast of world leaders and financial institutions at the Summit. The ovation by economic and financial experts for the courageous steps revealed more for the future, with the World Bank projecting, after the meeting in Paris, that Nigeria will save about $3.9 trillion in 2023, and N21 trillion between 2023 to 2025. 

The seriousness and quick engagement of critical stakeholders in the economy, like trade unions, oil marketers, depot dealers, the NNPC Ltd by the administration was also taken by the foreign institutions as a deliberate attempt, and not political convenience, to take the country to a new height, as well as various initiatives and measures being out on the drawing board to alleviate the impacts. 

The two-day Summit, hosted by French President Emmanuel Macron, was aimed at repositioning the global financial architecture to reconsider less developed countries, who are dealing with debilitating debt hangovers, struggling through energy transitions, and still reeling from effects of climate change and Covid-19. President Tinubu seized the moment to start a new conversation about Nigeria. 

A plethora of sideline meetings were lined before he arrived in Paris, and the President was careful in making the right choices for Nigeria’s economic prosperity. President Tinubu met with French President, Macron at the Elysée, President of Swiss, Alain Berset, at Palais Brongniart, President of Benin Republic, Patrice Talon, Director General of World Trade Organization, Dr Ngozi Okonjo-Iweala, President of the African Development Bank, Dr Akinwunmi Adesina, President and Chairman of the Board of Directors of African Export-Import Bank (Afrexim), Prof. Benedict Oramah and President of European Bank for Reconstruction and Development (EBRD), Odile Renaud–Basso.

The President also held meetings with Senior Vice President of Airbus/ATR, Public Affairs, Laurent Rahul Domergue, on aviation matters and a two-hour marathon interaction with the Nigerian community based in France, where he outlined his vision for the economy, starting with a roadmap on palliatives to soothe the burden of subsidy removal. He sought “family” support for more inclusive growth, especially with technical expertise.

Every speaker at the forum thanked the President for taking the bull by the horn, and getting the “elephant’’ out of the way.

“You have shown we have a committed and competent leader. You are the first President of Nigeria, who has no godfather. You are your godfather. We are impressed with the removal of subsidies and streamlining of foreign exchange. We will wait for the palliatives,’’ Prof. Emmanuel Iga, a Nigerian in France, said”.

While I am happy at the meeting because of the strategic importance of France as a world power and member of the elite G7, Tinubu must set the precedent of Nigeria relating with world superpowers on the basis of equality rather than the usual tokenism that has defined international relations since most African nations gained independence from their erstwhile majorly domiciled European former colonial masters.

My worry is that France’s status as a so-called developed nation is largely predicated on her continued parasitism of the resources of her former colonies In Africa. Françafrique is the name of this unequal balance of power between France and the Francophone countries which have been a source of anguish and underdevelopment of the latter.

Let us go down memory lane: In 1962, French President Charles de Gaulle commissioned his adviser Jacques Foccart to build up Françafrique. "Foccart built a network of personal contacts between the French leadership and the elites of the former French colonies.”

Foccart came up with the treaties that are still in force today. In exchange for military protection against attempted coups and the payment of hefty kickbacks, African leaders guaranteed French companies access to strategic resources such as diamonds, ores, uranium, gas and oil. The result is a solid presence of French interests on the continent, including 1,100 companies, some 2,100 subsidiaries and the third largest investment portfolio after Great Britain and the United States. France also retains the right of first refusal on all natural resources and privileged access to government contracts.

France also has a considerable military presence in Africa. It leads the Barkhane operation against Islamist groups in the Sahel region, in which around 5,100 soldiers from several countries are involved. According to the US daily "New York Times", in 2007, almost half of France's 12,000 peacekeeping troops were deployed to Africa. These troops have both military and advisory capabilities as well as supporting and stabilizing the regimes of the respective countries.

If France loses her ex-colonies to a possible rebellion by nationalist African leaders, its status risks being plunged to a similar one like Spain who largely depended on the plundering and looting of resources from abroad and when that stopped as a result of the loss of the Armada war against England in 1588 which saw the rise of the British Empire, the hydra-headed monster of poverty crept into the country which it is still yet to recover from.

France and eight members of the Economic Community of West African States (ECOWAS) had an agreement  on replacing the CFA franc with a new West African single currency called Eco.

According to the agreement, the Central Bank of West African States (BCEAO) will no longer have to deposit half of its foreign exchange reserves with the Banque de France as was the case until now. However, the fixed parity with the euro will be maintained, allegedly to prevent inflation. At least this will put an end to remittances from Africa to France. But it will not enable an African independent monetary policy.

In the past, African countries paid up to 65% of their foreign exchange reserves into the French treasury.

Tinubu should beware of a country that has no respect for the Sovereignty of her former colonies as the tendency is that the nauseating paternalistic relationship may be extended to Nigeria which wouldn’t be in our national interest.

It is high time Africa with Nigeria leading the vanguard altered the terms of foreign policy from aid to trade so that we can sit at the negotiation table and deal with one another as equals.

Martin Luther King’s ‘I Have a Dream speech’ particularly rings true here. The time for the paradigmatic shift in trade relations is now and Nigeria like it did during the anti-colonial liberation struggle should spearhead this vanguard, especially in the impending post-fossil fuel era.

Gone are the days when libraries were Mecca to both young and old who craved and longed for knowledge. But unfortunately today, many contents on social media that do not conform with generally accepted standards of behavior have overtaken and overshadowed the libraries that were known, decades ago, as sanctuary of knowledge where information and enlightenment flowed like water.

In a noteworthy event on Friday, the President of the Senate, Godswill Akpabio, made a visit to his predecessor in office, Senator Ahmed Lawan, at his residence in Abuja to celebrate Sallah.

Retiring Chief of Defence Staff and service chiefs in Nigeria will be granted certain benefits upon retirement.

POLITICS NIGERIA reports that these benefits, outlined in a confidential document known as the Terms and Conditions of Service for Officers of the Nigerian Armed Forces, include bulletproof vehicles, personal assistants, guards, and generous medical allowances both in Nigeria and abroad.

Among the retirees set to receive these benefits are General Lucky Irabor, the former Chief of Defence Staff, along with other military leaders such as Lieutenant General Faruk Yahaya, Vice Admiral Awwal Gambo, and Air Marshal Isiaka Amao.

According to Section 11.8 of the revised HTACOS 2017 (a revision of the HTACOS 2012), the retirement benefits for the Chief of Defence Staff and service chiefs encompass several privileges. These include a bulletproof SUV or an equivalent vehicle, to be maintained and replaced every four years by the military service. Additionally, they will receive a Peugeot 508 or equivalent backup vehicle, along with five domestic aides consisting of two service cooks, two stewards, and a civilian gardener.

Furthermore, each retiree is entitled to an Aide-de-Camp or security officer, a special assistant of lieutenant/captain rank or equivalent, or a personal assistant of warrant officer rank or equivalent. Additionally, they will have nine soldiers serving as standard guards.

In terms of transportation, the former Chief of Defence Staff and service chiefs will have access to three service drivers and one service orderly. They will also be provided with escorts by appropriate military units or formations when required. Furthermore, the retirement benefits include free medical coverage within Nigeria and abroad.

Retirees will have the privilege of retaining their military uniforms and accoutrements for ceremonial purposes, as well as personal firearms. However, it should be noted that such firearms will be reclaimed by the relevant services upon the beneficiaries’ demise.

Section 11.19 of the HTACOS 2017 specifies the retirement benefits for Lieutenant Generals in the Nigerian Army, Vice Admirals in the Navy, and Air Marshals in the Air Force. These benefits include two Peugeot 508 cars or one Toyota Land Cruiser, two cooks, two stewards, four residential guards, one service orderly, two service drivers, and free medical treatment in Nigeria and abroad, amounting to $20,000 per year.

For Major Generals in the Army, Rear Admirals in the Navy, and Air Vice Marshals in the Air Force, who hold the rank of two-star officers, retirement benefits consist of one Peugeot 508, a cook, a steward, two residential guards, one service orderly, one service driver, and free medical coverage within Nigeria and abroad, up to $15,000 annually.

Brigadier Generals, Commodores, and Air Commodores, who are one-star officers, will be entitled to one Peugeot 408, a service driver, two residential guards, one service orderly, and free medical coverage in Nigeria and abroad, totaling $10,000 each.

As for Colonels, Captains, and Group Captains in the Army, Navy, and Air Force, respectively, their retirement benefits include a Peugeot 301 or a vehicle of similar value, as well as free medical coverage within the country.

It’s worth noting that the document underwent a review in 2022 after a five-year period. However, it remains unsigned due to concerns regarding unequal distribution of benefits. In order for the revised terms to take effect, the Chief of Defence Staff requires permission from the President to sign the document.

The current HTACOS, which is in effect, specifies that the Chief of Defence Staff and service chiefs must hold the rank of four-star Generals and serve in these positions for a continuous period of two years. The Commander-in-Chief has the authority to extend these appointments for an additional two-year term following the initial expiration.

Despite the detailed provisions outlined, the duration of the Chief of Defence Staff and service chiefs’ tenure ultimately rests at the discretion of the President. This has raised concerns about potential unfair extensions, as was the case under the previous administration when President Muhammadu Buhari extended the tenure of service chiefs appointed in 2015 until their replacement in January 2021.

[PoliticsNigeria]

A former chairman, Major Oil Marketers Association of Nigeria, Tunji Oyebanji, has cautioned Nigerians and marketers against speculations over the pump price of petrol.

Oyetunji in an interview with the News Agency of Nigeria on Friday in Lagos said in a deregulated market, prices would be determined by market forces, noting that it was a needless speculation to project that a litre of petrol would sell for N700.

Oyebanji was reacting to a recent statement by the National Controller, Operations, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, who said the pump price of petrol could hit N700 per litre, especially in the North once independent marketers started importing the products from July.

Oyebanji said no marketer could predict the pump price until importation of the product commenced.

Oyebanji, who is the Managing Director, 11 Plc, said, “It depends on the exchange rate. If those factors are changing, prices of those products will also change. As you know, at a time, diesel went up significantly at above N800 per litre, but now it has come down to within N600 to N620 per litre.

“So, once you are in a deregulated environment, that is how it is, especially when you are importing the product. I cannot predict the price of petrol for now until we import the product.”

“Not until you order a cargo and know the exchange rate before you can predict the price. Those projecting the price are just saying this on a sensational basis to get marketers excited. I do not think anybody needs to do that. If you are observing the exchange rates, you will see that it is getting worse. If the price at the international market is also going up, then, you see how those things are being affected and that is how the price comes in.”

He said people would “have to adjust their spending accordingly and prioritise their choices”.

Oyebanji, however, added that the price could drop depending on the exchange rate, adding that it would create a healthy competition among marketers.

He noted, “The bottom line is that there will be an adjustment in price. Yes, it may go up and can also drop, depending on the exchange rate. But the good thing is that products will be everywhere. If people see that yours is more expensive than those of the filling stations around them, they will not patronise you. Then, you will be forced to bring down prices.

Osatuyi told NAN that fuel being sold by marketers such as DAPPMAN, IPMAN and MOMAN were old stock

He added, “Nobody has imported new products from the new foreign exchange regime and the new deregulation. Marketers are just planning to import, so everybody is in a transition pricing to the new regime.”

[Punch]

Relax, I am aware that the man has only been in office for one month. From the way he is going, he certainly has a thing or two to celebrate thus far.  But there is no real need for such a celebration, which will probably be accompanied by a public holiday this time. It will not add any real value to his performance, or historical track record, as a leader. Tinubu must keep his eyes on the ball. Let us begin to do things differently.

So, before his handlers prance off, in a frenetic pace to make a good impression, and show off their superstar, they should first answer this question: Does this government need to organize a State Event, complete with government officials, sniveling crumb-crunchers, genuine stakeholders and the president’s party members all lined up to reel off his specific and general achievements? I think not. We have had nore than enough of such charades over the years. And this is at all levels of government in Nigeria. Tl

Tinubu can create a new precedent by putting an end to it. There is an Igbo saying that when impropriety, or even an abomination, lasts long enough, it gets absorbed, applied and treated as tradition.

The first person who celebrated his first hundred years in office did so in a faraway country, on another continent. We have tried it, so our name is on the register. Now we need to move on, as a serious people. This pointless national engagement has cost the nation hundreds of billions of Naira in perfectly avoidable expenses for decades. Past governments at all levels have put too much energy, funds, fanfare and needless floodlights and festoons around it. And to what purpose? To tell Nigerians that the person they elected has been working for the first three months after being sworn in? Really? What else was he supposed to be doing? Why was he elected in the first place?

This sham proof of exceptional performance, and capacity to lead, is rarely ever followed through in the remaining 45 months of a 48-month tenure in office. So, let us show some sobriety and maturity here; knowing that the money to be thus squandered can be put to better use in these days of starving citizens, abominable inflation, unaffordable automotive fuel and much more – including trekking under the sun because of high transport fares.

Tinubu should, instead, let his foot soldiers do more work of explaining and justifying all the moves he has made so far. Some of them are clearly unsettling for many people. Even the supporters are unable to present a coherent narrative. Yes, whoever must make an omelet has to break some eggs; but the government must avoid a situation wherein the perception is that eggs are being broken just for the heck of it. The federal Government’s current decisions, actions and policy initiatives are foundational measures on which it is expected to build. They will make or mar Tinubu’s tenure. That is why their intent and purport should be simplified in the public domain.

A nation in crisis of the worst type, across all frontiers, cannot afford the additional crisis of avoidable confusion and quarrels arising from good but mismanaged, misrepresented, misinterpreted or simply misunderstood good intentions. The dumb-witted attempt to push forward the idea of a salary raise for the president and elected official, for instance, is so silly that it may well be a deliberate “enemy” action. Of all things on which to send a hurried memo to the president at this time? This degree of insensitivity says a lot about the level of disconnect between most managers of agencies of government and the Nigerian reality they are supposed to be dealing with.

With teachers, ASUU, doctors and sundry labour unions on the war path with government, amidst unprecedented rise in transportation and foodstuff for the citizens, the most brilliant idea a presumably serious agency of government can think of is increasing the pay packet of the president? A president who ordinarily lives at public expense? Ejikwa m ogu o!

While not agreeing pointedly with those who have gone so far as to say that the fledgling Tinubu Presidency has already outdone in three weeks what his predecessor would not have accomplished if he was given another eight years in office, it must be said and noted that the painfully lethargic, somnambulistic and purposeless eight-year tenure of former president Muhammadu Buhari has helped to project the actions of the current president as nothing short of the eighth wonder of the world.

Buhari’s tenure is likely to go down in history as the period of the greatest spiritual and material damage to the Federal Republic of Nigeria. The North, in particular, will take decades to get out of its present bind. The loss of lives, property and means of livelihood, the spate of banditry and general insecurity and the cheerful waste of human capital in an ill-informed insistence on trekking thousands of kilometres to feed cattle will yet rebound. The damage done by Buhari to the APC, national cohesion, service delivery, leadership sensitivity, equity, natural justice, genuine democracy in a plural society and the idea of leadership and responsible self-presentation as leader is immeasurable.

Practically everything that spoke to a better, and greater, humanity, suffered shipwreck under Buhari.  That is partly why what is going on at the moment looks, or seems, a bit dizzying for most Nigerians who lived for eight years with a president who did nothing, knew nothing and was bothered about nothing. Tinubu took over from a man who was not on the job at all.

It took Tinubu’s predecessor six months to appoint ministers. It took him practically one year to dissolve the Governing Boards of MDAs, and more years to reconstitute them. He retained most government functionaries for eight years, thereby forcing many carrier officers to either stagnate or retire without deserved fulfilment. That is why the apparent ease and speed with which important decisions and appointments are now being made, as well as the excitement of those who kept telling us that Tinubu would hit the ground running once sworn in, is understandable.

But, let’s get real; and remain real. A leader is supposed to lead, is he not? This leading means, first, designing a comprehensive engagement strategy. It means, second, thinking through the appropriate policies for dealing with various problems. It also means finding and deploying the right type of human capital for implementation. The criteria here must include competence and sensitivity to the existing, and subsisting, sociopolitical realities; two paradigms on which Buhari performed disastrously and delivered miserably. This will then all be capped by a credible compliance system that is driven by cost-effective implementation, monitoring, evaluation, feedback, recalibration and re-engagement – within a self-correcting framework.

It would seem that Tinubu has set out with some kind of broad strategic framework. That framework, whatever it may be and in whatever way it is conceptualized, must run on the path of equity, natural justice and good conscience. It must also note the right type of investment that will lead to national development, instead of merely recording expenditure on all manner of projects; with neither positive impact nor tangible benefit on the people.

I cite as example in this regard one of the very telling decisions of the previous leadership under “investment in education”. The sum of N4.7 billion was approved for the construction of seven Models Schools in the six geo-political zones of the country and Abuja. This was totally unnecessary. As was pointed out here on May 31, 2019, “To build new model schools is to award building contracts to “reliable” contractors. Construction of the schools will take years, to be followed by the provision of state-of-the-art amenities; which essentially boils down to a series of procurement contracts.”

Would it not have been better for the federal government to upgrade the over 100 Unity School in the country into Model Schools, with even less financial resources? As said then: “A simple costs-benefits analysis shows that 4.7 billion Naira will go a very long way in rescuing the now-decrepit and derelict Unity Schools in the country and increasing their carrying capacity. It is not right that we should have such huge budgetary provision on record as proof of government commitment to education when it is not”.

With this new APC government, which probably came into office despite the efforts of APC stalwarts to abort it, things must be done differently. Doing things right, and differently in a positive and upbuilding way, is the strongest campaign any party in power can make for itself.

That is why this government should note, in particular, the following observation that was made here four years ago: “The school system is like a “factory” producing human capital for the nation. It needs “factory workers”, as well as facilities and the physical infrastructure housing all activities. Investment that focuses on factory machinery and the premises of our education industry is not the best approach to improving the quality of citizens (or “products”) we turn out. It is not enough for an investor to procure and install fine “machinery.” The equipment will not translate into quality products, or even any products at all, except there are also competent people to handle them”.

We can illustrate this with the example of a man who builds a bakery to the best global standards, “complete with a service and marketing templates that even the Jews would envy, but who fails to train bakers and install an efficient and effective management”. He has invested foolishly, has he not? Every industrialist knows that impressive installed capacity that is accompanied by poor capacity utilization and incompetent staff is a recipe for unmitigated disaster.

That is why we must consciously plan for national development with a holistic template and outlook. It is beyond hitting the ground running, or rolling out several decisions in a hurry. It has more to do with sustainability. The Tinubu government has much to make good, and for several reasons. One thing it can spare Nigerians is the celebration of its first 100 years in office. If anything, it can do first 30 days in office. Now, that will be something.

.

I really wanted to stop talking about subsidy removal for two reasons. One, senseless, right-wing, anti-people economic populism has become hegemonic in Nigeria as a direct result of careful, deliberate, sustained, artful, and largely unimpeded propaganda by out-of-touch and unfeeling World Bank/IMF ideologues in Nigeria such as Sanusi Lamido Sanusi, Peter Obi, Ngozi Okonjo-Iweala, Akinwumi Adesina, and others.

Two, because corrosive right-wing populism now enjoys an unchallenged rhetorical high ground, opposing it comes across as deviant, unreasonable, and tone deaf. Most people whose quality of life is being eroded, and in some cases outright exterminated, by the withdrawal of the state from the quotidian life of the citizenry (which subsidy removal represents) have been brainwashed into supporting the policy. They fight people who question the wisdom in exposing vulnerable populations to the torments of the elements through World Bank/IMF-dictated subsidy removal policies.

At a point, you ask yourself if there is any merit in fighting for a people who are deeply invested in their self-immolation, who are cheerleaders for their oppressors, who fight you for fighting for them, whose counterattacks you need to fend off as you attack their attackers, and who remind you of Zimbabwean nationalist Benjamin Burombo’s pithy observation that “Each time I want to fight for African rights, I use only one hand — because the other hand is busy trying to keep away Africans who are fighting me.”

But two things caused me to change my mind. The first was a conversation I had with my retired uncle who told me in a moment of profound despair that the agony that the removal of petrol subsidies has brought on him has compelled him to give up on living and to prepare for his death. That broke my heart. Paradoxically, though, he praised the government for “saving the masses” by removing petrol subsidies, which he thought hurt only “the greedy oil marketers.”

Until I pointed it out to him, he didn’t have any self-awareness of the relationship between the unbearable anguish he was experiencing and the removal of fuel subsidies. That’s precisely what social scientists mean when they say an idea has become hegemonic: most people accept it as self-evidently commonsensical and beyond debate even if it isn’t. Even people who criticize the removal of subsidies in Nigeria only criticize its timing or method, not its undesirability. 

Of course, it’s hard to justify apportioning any blame to the Tinubu-Shettima administration for the removal of subsidies. For one, the departing Buhari administration made it a fait accompli. It wasn’t just that removal of petrol and other subsidies were some of the terms and conditions international lenders gave the Buhari administration for securing loans that were stolen with impunity, no provisions were made for subsidy payments in the current budget, which the Buhari regime prepared.

For another, deceitfully engineered mass rage against “subsidy” is so strong in the public sphere that if Tinubu didn’t announce the removal of petrol subsidies, he would have been attacked by both the elite and the poor, not to mention by international finance institutions. Thanks to the successful propaganda of our homegrown neoliberal, right-wing ideologues, being heartless, cold-blooded, indurate, and anti-people is now celebrated as bold, brave, and beautiful.

That’s why I have zero respect for Peter Obi supporters who are critical of Tinubu’s removal of petrol subsidies. More than anyone in the last two years, Obi has emerged as the most passionate assaulter of basic compassion in governance. He parlayed his popularity with a section of Nigeria into an opportunity to attack subsidies, deodorize wickedness in governance, and convince people that a poison that destroys them piecemeal is actually salutary for them. In other words, he helped to create the manufactured anti-subsidy consensus that Tinubu is now exploiting. 

And this leads me to the second reason I’ve decided to embark on this futile swim against the self-destructive mainstream of anti-subsidy sentiments in Nigeria. Ideologues of subsidy removal base their arguments around four major points: that it benefits only a few elites, particularly greedy oil marketers; that government needs the money it saves from removing subsidies to fund education, health, and infrastructure (the same canard we’ve consistently heard since the 1980s); that it’s riddled with corruption, which necessitates its removal; and that petrol subsidies only subsidize consumption at the expense of production at a time we need to move from “consumption to production.”

These are all hollow, threadbare, and logically impoverished arguments. For starters, the notion that subsidies don’t benefit the poor is one of the stupidest, most manifestly flawed fallacies I’ve encountered in my entire life. Petrol subsidies are the only subsidies that benefit all strata of the Nigerian social hierarchy. All other subsidies exclusively benefit the rich.

The evidence stares at us everywhere if we care to look with sensitivity and empathy. It stares at us in the crushing collapse of everyday life in Nigeria because of the removal of fuel subsidies. Transport fares have more than tripled. The cost of food has more than tripled, too, because of the increase in the cost of transporting food from point to point. 

People are resigning from their jobs because the cost of transportation to work is now higher than their monthly salaries. So, unemployment, which is already unsustainably high, will triple with the attendant unsettling effect on society.

The informal economy, where the vast majority of Nigerians are employed, is folding because small businesses can't power their generators for their businesses in the absence of stable electricity from the national grid. Small businesses such as grinding machine businesses that use generators to power their engines are packing up.

 Those that can afford to power their generators can't produce because everyday folks can't afford the new petrol-price-increase-inflected cost of the goods and services they produce. This reality gives the lie to the idea that we’re subsidizing “consumption” and not “production.” Consumption and production are not mutually exclusive; they’re mutually reinforcing.

 Schools and even government ministries in many states are reducing workdays because ordinary people can no longer afford the 5-day commute to school or work. That affects productivity and the future of our children. And some people say petrol subsidies benefited only a few rich people? What kind of mind-altering weed do these callous dunderheads smoke?

Even the wicked wretches and witches at the World Bank have conceded that an additional 7.1 million Nigerians will be thrown into the menacing trap of multidimensional poverty as a result of the removal of petrol subsidies. “Without compensation, many households could be pushed into poverty by higher petrol prices and forced to resort to coping mechanisms with long-term adverse consequences, such as not sending children to school, or not going to health facilities to seek preventative healthcare," the World Bank said.

And oil marketers? These are friends of people in government who have been given blank cheques to extort Nigerians as they wish. When Tinubu announced the removal of petrol subsidies, these same marketers who are supposed to be the targets of subsidy removal arbitrarily jacked up their pump prices to more than N500 per litre on old stock that was subsidized by taxpayers, and which was supposed to be sold at N184. That was a government-sanctioned rape of Nigerians.

Now the oil marketers say whenever they replenish the current stock, Nigerians will pay more than N700 per liter starting this July. In other words, whether or not there are subsidies, the marketers will always make money.

There is unanimity of opinion that petrol subsidy administration is riddled with unspeakable corruption, as everything else in Nigeria is. But why is the corruption in petrol subsidy administration the only kind of corruption that causes the government to stop it? Why not the corruption in the turn-around maintenance of non-functional refineries, for example, where way more money is stolen than in subsidies? For that matter, why not governance itself, which is a magnet for the biggest corruption in Nigeria? 

Every government project is amenable to corruption. Even in the US here, welfare projects for poor people and unemployment benefits for people who have lost their jobs are riddled with corruption. The recent COVID relief funds, for example, were undermined by corruption. But you know what the government here hasn't done? Stop helping people who need it because of the corruption in the programs designed to help them. You know what it does? Go after the corruption in the system.

Instead of reforming the dispensation of subsidies so that people who need the relief can get it, people are being told to “sacrifice.” As an elder statesman told me recently, the poor are actually now being “sacrificed” while the political elites use proceeds from the removal of subsidies to fund their luxuries.

 But you will never hear opponents of subsidies (who, by the way, benefited from subsidies right from their primary school up to their universities but who now want to break the ladder they used to climb to their current positions) talk about the corrupt, unearned privileges of the rich and the powerful.

Their “bravery” and “expertise” come forth only when they attack subsidies for the poor, when they defend the destruction of the fabric of society that mean, racist, and hateful IMF/World Bank economists recommend.

 No society that brazenly starves and robs its poor to enrich its rich should expect to make progress or enjoy peace.

President Bola Ahmed Tinubu has said that he could have chosen to maintain the hitherto multiple foreign exchange systems and benefit from it, but instead opted to unify the official and parallel market rates to save the country from financial hemorrhage.

Speaking on Thursday at a civic reception organised in his honour by the Lagos State Government at the Lagos House, Marina, he explained that said he took the decision in the nation’s best interest just like he did with fuel subsidy removal.

“I could afford to share the benefit by participating in the arbitrage, but God forbid! That’s not why you voted for me,” he said.

The President said it was imperative to take those decisive actions in the early days of his administration.

“We need to take the steps to stop the bleeding of our finances through speedy action on fuel subsidy. We have no choice,” a statement by Dele Alake
Special Adviser, Special Duties, Communications and Strategy, quoted him as saying.

President Tinubu said as a way of ensuring good use of available resources, the government would “re-engineer the effectiveness of the control and management of our resources in order to meet the obligations to Nigerians by political officeholders”.

The President used the opportunity to solicit the support of governors present at the event to work with him in ensuring even development of the country.

“We will work together with an open door policy. We will bring Nigeria from the brink to a resilient economy. I want us to be partners so that we can rescue our land and make it a born-again nation,” he further said.

According to the statement, President Tinubu, who was thankful to the Lagos State Government for putting together the reception and to his friends and associates who attended, apologised to some of his friends in the audience who, he said, had been yearning to see him but could not, because of the demands of his office.

“The assignment is greater than the love of the living room. We got to do the job,” he said.

Lagos State Governor Babajide Sanwo-Olu, while appreciating guests, expressed gratitude to God for making President Tinubu the leader of Nigeria. He described him as a competent manager of human and financial resources with the midas touch to turn around the economic fortunes of the country.

Speaking on behalf of the Nigeria Governors’ Forum (NGF), Kwara State Governor and Chairman of the forum, Abdulrahman AbdulRazaq, pledged that state chief executives, regardless of party affiliations, were ready to cooperate and work with the President to ensure the country becomes better and safer for all citizens.

“NGF is excited that both the President and Vice President are alumni of the Governors’ Forum. We are committed to work with a federalist who worked to get things done in a truly federal system. We reiterate our support for a renewed hope agenda regardless of our parties.”

President of the Senate, Senator Godswill Akpabio, who spoke on behalf of members of the National Assembly, thanked President Tinubu for his leadership in smoothening the take-off of the 10th National Assembly.

“You will succeed. Nigerians are proud of you and the National Assembly is here for you 100 percent. We will do whatever is legislatively possible to make you succeed,” Akpabio said.

Immediate-past Minister of Works and Housing and former Governor of Lagos, Mr. Babatunde Fashola, pleaded with governors and Nigerians that the work of remaking Nigeria should not be left alone to the President, stating that good governance must be replicated across 36 states.

Going down memory lane, leader of Lagos Governor’s Advisory Council (GAC), Pa Tajudeen Olusi, said the emergence of President Tinubu was a pay-back time for the state having contributed significantly to the political evolution of Nigeria since the colonial era of Herbert Macaulay till date.

“Those who have led this country were tutored in Lagos. We are grateful that the President of Nigeria this time finally came from Lagos. We have a man whom we are proud of. He has already started well and Nigerians have seen his first 30 days as remarkable.”

The event was attended by the Vice President, Senator Kashim Shettima; wife of the president, Senator Oluremi Tinubu; All Progressives Congress National Chairman, Senator Abdullahi Adamu; Senate President, Godswill Akpabio; Speaker of House Representatives, Special Advisers, Hon. Tajudeen Abass, and Chief of Staff to the President, Femi Gbajabiamila, among others.

Lagos Deputy Governor Obafemi Hamzat delivered the vote of thanks at the occasion which was also attended by serving and former govenors from across party lines in solidarity with the President.

He sacrificed national interest for selfish benefits —Nigerians

He’s Nigeria’s most ethnic-chauvinist president—Ex-minister

Winning election more important to him than national interest —Prof Ezeibe

Tinubu must probe Buhari’s administration —Prof Madubuike

In a stunning admission on Monday, former Nigerian president, Muhammadu Buhari, revealed that the withdrawal of oil subsidy was not motivated by the country’s economic interests but rather as a political move to benefit the All Progressives Congress (APC) and its then-presidential candidate, leader, Bola Tinubu, in the February 25, 2023 elections.

This revelation, which came through a press statement by former presidential media aide Mallam Garba Shehu, has ignited a firestorm of criticism, raising broader questions about how national interests were prioritized throughout Buhari’s tenure and shedding light on a range of pressing issues that plagued Nigeria during his time in office.

Former President Buhari’s reported confession regarding the withdrawal of oil subsidy also triggered a wave of public outrage. Nigerians from all walks of life are now questioning whether their ex-leader’s decisions had been guided by a genuine commitment to serving the nation’s interests or instead driven by political calculations.

The decision to remove the subsidy has been met with widespread backlash, as it led to an immediate increase in fuel prices, exacerbating the economic challenges faced by ordinary citizens.

The former President’s admission further raised concerns about the governance ethics under his leadership. Critics argue that his alleged inaction or turning a blind eye to corrupt practices within his administration allowed a culture of impunity to thrive.

Voodoo contracts, oil theft, and massive stealing became rampant, further eroding public trust in the government’s ability to tackle corruption effectively. The lack of accountability contributed to the country’s economic woes and hindered its progress.

Another troubling aspect of Buhari’s presidency was his perceived inaction in addressing the escalating violence perpetrated by Fulani herdsmen.

The President’s ‘body language,’ as some critics put it, was seen as encouraging these attacks, which resulted in countless lives lost, kidnappings, and disrupted farming activities. The failure of the military to respond adequately to these atrocities added to the growing sense of insecurity and instability in affected communities.

Reactions

In light of President Buhari’s confession, Nigerian leaders from various sectors and civil society organizations have come forward to express their concerns and demand accountability.

National interests compromised during Buhari’s tenure —Isa Yuguda

Former Governor Isa Yuguda of Bauchi State described the delayed removal of the fuel subsidy as a clear indictment of the President’s lack of political will, suggesting that national interests were indeed compromised during his tenure. Yuguda emphasized, “The issue of subsidy removal had been talked about so much under the previous government that it is comparable to motion without movement. It had been just a talk shop while the government lacked political will. Implementing policies, especially when vested interests and a cabal exist, can be very frustrating. It is similar to the issue of illegal oil bunkering and theft. It can be stopped, but the political will to do so is not there. There are so many interests involved, and that is what is leading Nigeria to where we are today. The subsidy regime should have been abolished back in 2012. Anyone who makes excuses against subsidy removal is a selfish person connected to the scammers that are harming this country.”

Other prominent figures, such as Prof. Charles Nwekeaku, Secretary of Igbo Elders Consultative Forum led by former Anambra Governor, Chief Chukwuemeka Ezeife; the Executive Director Civil Society Legislative Advocacy Centre (CISLAC), Head of Transparency International Nigeria and Chair Board of Trustees Amnesty International Nigeria, Auwal Musa Rafsanjani; and former Chief Imam of National Assembly Legislative Quarters Mosque, Shiekh Muhammad Nuru Khalid, echoed similar sentiments, calling for a thorough investigation into the allegations.

Politicians must not sacrifice the nation for their selfish political interests —Sheikh Khalid

Sheikh Khalid, who spoke to Saturday Vanguard from Saudi Arabia where he is currently observing the Hajj pilgrimage rites, emphasized the need for accountability, stating, “Former President Buhari’s admission is a wake-up call for all Nigerians. We must hold our leaders accountable for their actions and demand transparency in governance. Our democracy cannot thrive if political interests consistently take precedence over the welfare of the people. Politicians must sacrifice for the nation and not sacrifice the nation for their selfish political interests. This lack of accountability has undermined our country’s development and left ordinary Nigerians suffering.”

His confession represents a high level of irresponsibility —Prof. Nwekeaku

In a similar conversation with Prof. Nwekeaku, scribe of the Igbo Elders Consultative Forum, he expressed his disappointment, saying, “Nigerians trusted Former President Buhari to make decisions that would benefit the country, but this revelation shows that the trust was misplaced. How can we have faith in a government that sacrifices our well-being for political gain? In governance, national interest overrides every other interest. You don’t solve a problem by postponing it. His (Buhari’s) confession represents a high level of irresponsibility, lack of commitment, and insensitivity to the feelings of the people. It also confirms what many of us suspected all along—that corruption was given a free pass under his watch.”

Buhari’s government had been lying, deceiving, misrepresenting facts to Nigerians —Rafsanjani

For Rafsanjani, who heads Transparency International Nigeria and chairs the Board of Trustees of Amnesty International Nigeria, there was a disconnect between what the former president was doing and what his aides were saying to Nigerians. He said, “Firstly, Garba Shehu, the former presidential spokesman who reportedly made the confession about the reason behind the fuel subsidy removal could have done that to seek attention because he has always been contradicting himself. However, the former president had been docile and didn’t care about his public image and reputation, he allowed Shehu to be flippant in a disrespectful manner. The implication of Shehu’s confession is that Buhari’s government had been lying, cheating, deceiving and misrepresenting facts to Nigerians and did not mean well for the nation. On the other hand, now that we have succeeded in stopping the payment of fraudulent fuel subsidy, we don’t want another set of looters to emerge.”

Nigerians must probe Buhari’s administration —Prof Madubuike

Two-time Minister of Education and Health respectively, Professor Ihechukwu Madubuike, said the ex-President unlike any other President since the history of Nigeria, placed the interest of his ethnic Fulani above any other consideration. The former lawmaker and Commissioner for Finance in the Old Imo State, further said he would not be surprised if Buhari sacrificed national interest at the alter of ethnic, party or personal interests in some of his actions and in-actions while in office.

His words: “Buhari was, and is still an ethnic bigot. Everything Fulani was his interest. Anything that would advance the fortunes of the Fulani he would do, and he achieved that through his party. At the end of the day Nigeria must rank him as the most ethnic-chauvinist President that the country has ever produced. If Nigerians can have the courage to investigate the eight years of Buhari’s leadership, then the outcome will determine what the next step will be”. Professor Madubuike who regretted that Nigeria was under state capture under ex-President Buhari, wished the authorities would be courageous enough to probe the former President’s administration.

Winning election more important to APC than national interest —Prof Ezeibe

Also reacting, the Chairman, Board of Trustees of a Think Tank, Professor Madubuike Ezeibe, said by Buhari’s confession, the ruling APC, was ready to undermine national interest to protect party interest.

He said that such confession was suggestive that the party might have directed the Independent National Electoral Commission, INEC, to compromise standards provided the party’s interest was served. According to him, “if APC has confessed that winning election was more important to them than the national interest it is clear the party encouraged INEC to neglect the Electoral Act and election regulations including real time transfer of results (from polling units to IReV) just to ensure they ‘won’. This was the same attitude the defunct National Party of Nigeria, NPN, exhibited which was the reason Buhari, Babangida and Abacha gave for truncating the second republic.

“Disaffection from elections also led to the crisis in the Western region which led to the truncation of the First Republic. The actors usually boast that nothing will happen but Nigeria has always been torn apart by this attitude of sacrificing National interests for personal and partisan interests. The only difference is that in the 2023 election, efforts to divide Nigerians along tribal and religious lines failed. That is the reason INEC chose to avoid transparency.

“Everybody should encourage the judiciary (our last hope) to collate the results from polling units so that if APC won the election, their government can have legitimacy but if they did not win, whichever party Nigerians chose would be declared winner so that we can have peace and progress.”

Buhari never wanted Tinubu to win —Coalition of Northern Groups

Also reacting, the Spokesperson of the Coalition of Northern Groups, Abdul-Azeez Suleiman said “The confession by the former President Buhari did not come as a surprise to us at the CNG. If anything, it is a confirmation of what we have been pointing out throughout the eight years of that citadel of poor governance, indifference, insensitivity and unprecedented plunder that was the Buhari presidency.

“We however disagree slightly with Buhari because everyone is aware by now that he never wanted Tinubu to win, and never worked for his victory. Instead, he supported policy directions and encouraged actions that clearly aimed to subvert it. The failure of the Buhari administration to announce the removal of the fuel subsidy was merely one out of the several indecisions, lack of courage and political will to tackle national issues around security, the economy and reintegration that characterized an administration wrapped in the crude cover of crass political opportunism and breathtaking ineptitude.

“It is part of the burdens of the shared legacy of the Buhari administration in the bombs and bullets of insurgents, bandits, and the deteriorating standards of living as politicians and top government officials fleeced the poor of resources to develop, officials whose personal greed and ambitions remained tied to the continuation of decay and destruction of a nation and a people.

“He treated as enemies those of us who tried to wake him up to the magnitude of the humanitarian disaster that criminal activities have created with about five million of our fellow citizens internally displaced with hundreds of thousands of orphans, hunger and malnourishment, previously unknown in our land becoming alarming features of existence.

“Buhari’s confession is part of the unfortunate eight years under a leader who had spent a large part of his life asking all Nigerians to trust him to lead, but ended up getting the nation critically endangered by officials who failed to lead with justice and sensitivity to its plural nature and the limitations of our political process.

“Buhari’s confession had only proved that the nation was not wrong when it insisted that his image and vision were not being served by the quality and competence of almost all of the people he assembled to work with him and see the nation through its most difficult period.

It is a vindication for those of us who were labelled enemies for insisting that the Buhari administration could do much better in managing the economy, in the all-important fight against corruption within the laws of the land, and in rebuilding a nation united around the values of justice and honest enterprise.

It is a vindication for those of us who reminded him daily that hunger was stalking millions of homes, inflation was making life difficult by the day; people were losing jobs, businesses closing down, and infrastructure was decaying. It is also a belated admission that in the last eight years, he led an administration that had acquired the reputation of being the worst in the history of our nation in terms of any capacity to generate confidence in achieving credible national goals.

Our constitution was set aside for selfish interest — Rev Joseph Hayab

In his own submission, Rev Joseph John Hayab, Chairman, Christian Association of Nigeria (CAN), Kaduna State Chapter, said, “During Buhari’s administration, most of the decisions and actions taken were from a political lens and for their political successes regardless of how the citizens felt and what happened to them and the country. Nigerians have not yet heard the whole stories of the poor and inhuman decisions that the Buhari administration took when they were in power. The honeymoon will soon be over and we will hear more from both those who benefited from the system and those who were sidelined but could not speak due to fear. Governance is about the people and national development, but sadly Buhari and members of his team brought every good thing down to the level that even outside this country people were wondering if we, the citizens have brains and what happened to our eyes that we could not see the many atrocities committed in our country. Our constitution was set aside for selfish interest. Those in authority were only doing what they liked as against our common agreement. What they are telling us today should not be mentioned even in a zoo but because they have divided citizens along religion, ethnic and sectional lines and we cannot team up to fight them, that is why they are now speaking out without shame.”

Other political analysts and experts have also commented, highlighting the damaging impact of prioritizing political gains over the welfare of the nation. They argue that such actions not only erode public trust but also hinder Nigeria’s development and progress. The need for stronger institutions, checks and balances, and a commitment to transparency and accountability has become even more apparent.

Dr. Chidi Azubuike, a renowned political analyst, commented, “President Buhari’s admission reveals a deep-rooted problem in our political system. It highlights the urgent need for comprehensive reforms to ensure that our leaders prioritize the interests of the nation over personal and party gains. It is time to strengthen our institutions and establish a culture of good governance that places the people at the center.”

Chris Kehinde-Nwandu, a member of the UK’s Chartered Institute of Arbitrators, said: “The fact remains that even the election (ex-President Buhari referenced) is still being disputed. Many still believe that the election was flawed. The fact that he came out to say he delayed the removal of subsidy is no news because it was supposed to be removed long ago, but he delayed it until the tail end of his administration.”

Mnena Kwaghor, a victim of Fulani herdsmen violence, tearfully shared her harrowing experience, saying, “I lost my husband in a brutal attack by Fulani herdsmen. Thinking about the former president’s confession, it breaks my heart to see that he may not have taken decisive action to protect innocent lives because of political interests. How could Nigerians have trusted a government that failed to prioritize the safety and well-being of its citizens?”

Conclusion

Former President Buhari’s recent admission regarding the withdrawal of oil subsidy has opened a Pandora’s box of questions about how national interests were handled during his time in office. The confession underscores the need for a critical examination of government ethics and the impact of political considerations on the welfare of the nation.

As Nigeria moves forward, it is crucial to learn from these experiences and ensure that future leaders prioritize the interests of the country above all else. It is a call for Nigerian citizens to remain vigilant, demand accountability, and actively participate in shaping the future of the nation.

By holding their leaders responsible for their actions, Nigerians can strive for a more transparent, inclusive, and prosperous Nigeria, where national interests are safeguarded, and the well-being of the people takes precedence.

The path to a better Nigeria lies in learning from the past and working towards a future where governance serves the people’s interests, uplifts the nation, and fosters unity and progress.