Thought subsidy was bad: Why is Tinubu bringing it back?
tribuneonlineng.comSep 30, 2023 2:30 AM

A September 21, 2023, enterprise news report (i.e., a news report that’s not from a news release or a press conference) from the Daily Trust found that “Despite the numerous assurances by President Bola Ahmed Tinubu that… subsidy is gone… the federal government paid N169.4 billion as subsidy in August to keep the pump price at N620 per litre.”

What happened? I thought petrol subsidies were evil, harmful, no-good drains on the economy that should be avoided at all costs. I thought the government had no responsibility to tame the savagery of market forces and to protect citizens from the full fury of the vagaries of international oil prices.

I thought the “invisible hand” was supposed to regulate prices unaided by any governmental intervention (which has been thoroughly disproved by the fact that petrol marketers arbitrarily increased their pump prices after Tinubu precipitously announced that subsidies were gone even though they were selling the old stock of petrol that had been subsidized by taxpayers.)

I thought it didn’t matter that unaffordable and extortionate petrol prices are causing hundreds of thousands of Nigerians to starve and die, small- and large-scale industries to collapse, unemployment to skyrocket, the economy to shrink, quality of life of the average citizen to plummet, and Nigeria as a whole to regress to the Stone Age.

With the naira on an unprecedently free fall against the dollar and global petrol prices on the rise, it’s inevitable that petrol would have been at least 1,000 naira a liter by now if the “invisible hand” that conservative economists have invested so much faith in were left to determine the pump price of petrol. It’s conceivable it could climb to 2,000 naira per liter in the coming months if the government doesn’t interfere with the vagaries of the market.

Why is Tinubu committing “economic blasphemy” by misdoubting the power of the omniscient and omnicompetent Invisible Hand to take care of everything? Why is he intervening to stop the pump price of petrol from getting to its appropriate rate? Does he want our petrol to be so affordable that our neighbors will smuggle it?

Does he no longer want to save money to build and renew infrastructure and fund education? (Never mind that we haven’t seen where the money saved from the withdrawal of subsidies since May has been put to productive use. Or that only the living and the healthy can use infrastructure and go to school.)

Well, I guess Tinubu and his ideological cheerleaders in and out of government are beginning to see what some of us have been saying for years: that subsidizing an essential commodity like petrol in Nigeria whose price affects every facet of life is not an option; it is an abiding moral imperative.


The government’s primary reason for existing is to protect lives. As it is by now evident, withdrawing fuel subsidies in an oil-producing country that is the poverty capital of the world, that has one of the world’s lowest minimum wages, and that has no public transportation system is a trigger for mass suffering and mass deaths.

There is something else that must have informed Tinubu’s decision to stealthily halt the impending rise in the pump price of petrol: insurance against mass anomie and revolt.

Although Nigerians can be some of the most incredibly docile and self-hypnotic people on earth, it’s stupid to assume that they will always be so. As someone once remarked, “The day when large numbers of men have to choose between feeding their children and providing a roof over their heads—is the day when nothing will stop the torches and pitchforks.”

In other words, there is a limit to human endurance of pain and deprivation. Most people won’t listlessly just roll over and perish because of persistent adversity. People with an overpowering will to live who can’t survive government-engineered suffocation of their lives (which withdrawal of subsidies amid endemic poverty represents) will turn to crime out of desperation. That’s why the crime statistics in Nigeria have quadrupled since May.

But it’s going to get worse. For now, the victims of crimes are the poor and the disappearing middle class. The rich and the powerful are next if the current subsidy-removal-activated excruciation doesn’t abate. After the poor, the lower middle class and the middle class are dispossessed, the rich will become the next meal of the desperately poor.

“Eat the rich” is an enduring, often metaphoric, revolutionary catchphrase usually mouthed by conscientious, socially sensitive middle-class intellectuals to denote redistributive economic justice, but it could become literal in Nigeria once it gets to the point when only the rich—politicians and their underlings, wealthy business people, and other government-subsidized fat cats—have all the food. That’s why so-called bread riots are historically the most common triggers of momentous mass insurrections.


Cynical conservatives in the West like to say subsidies for the poor are basically protection money to stop the poor from stealing and revolting. The rich in the West don’t want to be awake because the poor can’t sleep. The late Professor Sam Aluko captured it brilliantly in 1999 when he memorably said, “The poor cannot sleep because they are hungry, and the rich cannot sleep, because the poor are awake and hungry.”

That is why the welfare state was brought forth in the West. The International Encyclopedia of the Social & Behavioral Sciences defines a welfare state as “a state that is committed to providing basic economic security for its citizens by protecting them from market risks associated with old age, unemployment, accidents, and sickness.”

Ironically, it is the same welfarist West whose institutions (such as the IMF and the World Bank) encourage, in many cases compel, developing countries like Nigeria to strip the poor of basic economic security through the removal of subsidies.

Of course, our rapacious, self-loving leaders who want exclusive control of the state’s resources for themselves and their families welcome the freedom from being responsible to struggling citizens that removal of subsidies represent. And slavish, unthinking ideologues of the “Washington Consensus” cheer on.

There is not an example of a single country on earth that has made progress on the basis of the cruel policies that the World Bank and the IMF impose on countries. As Professors David Held and Anthony McGrew persuasively showed in their book, Globalization/Anti-Globalization: Beyond the Great Divide, “Developing countries that have benefited most from globalization are those that have not played by the rules of the standard [neo]liberal market approach, including China, India and Vietnam” (p. 226).

In fact, even America, the patron saint of capitalism, doesn’t practice the sort of cruel, extreme capitalism that Tinubu is practicing and that even his opponents promised they would practice if they got a chance to be elected president.

As I pointed out in my December 10, 2016, column titled “Dangerous Fine Print in Emir Sanusi’s Prescriptions for Buhari,” when it comes to welfare of its citizens, America doesn’t practice on its soil what its institutions preach to developing countries.

I wrote: “But when the United States went into a recession between 2007 and 2009, it didn’t follow any of these neoliberal prescriptions. The dollar wasn’t devalued. Subsidies weren’t removed. The state wasn’t rolled back. The government didn’t retrench workers. Taxes weren’t raised.

“On the contrary, the government increased expenditure. The financial burden on the populace was eased with lower taxes. Government, in fact, sent lots of money, called tax rebate checks, to lower- and middle-income families so they could have money to spend, since recession is essentially the consequence of people not having enough money to spend. I was a beneficiary of the tax rebate, so I know what I am talking about. Financially distraught private companies (particularly car manufacturers and banks) were bailed out by the government.”

I don’t know if Tinubu and his team are finally realizing that the problem with fuel subsidy was the monstrous corruption in it and not the subsidy itself. Most of what passed as fuel subsidy was fraud. Any government worth the name should be able to tackle the corruption and administer subsidies for the collective benefit of Nigerians.

But Tinubu was swept over by the idiotic anti-subsidy mass hypnosis that has engulfed Nigeria in the last few years.

This has ensured that Tinubu has had by far the shortest honeymoon in power. Why won’t he? He promised to hit the ground running but instead hit the ground ruining— with his infamous “Subsidy is gone for good” declaration on inauguration day. He promised renewed hope but is giving renewed hell. He promised the dawn of a new era, but people are seeing the dawn of a new error after Buhari.


https://tribuneonlineng.com/thought-subsidy-was-bad-why-is-tinubu-bringing-it-back/

It is the APC minions that are the most hilarious.

Anywhere belle face.

Subsidy is bad & gone. They will chant.

Subsidy is good & back. They will chant.

Sheep...

It is highly regrettable and a national catastrophe that all those who demonised (spearheaded by Tinubu, Buhari, Wole Soyinka, Femi Falana, Yoruba actors,etc) former president Goodluck Jonathan over the fuel subsidy palava are yet to apologised to this man despite playing politics of hatred, dehumanisation and denigration of the office, person and family of the former president.

They have absolute zilch knowledge of the working dynamics of fuel subsidy but played needless politics with this sensitive national issue( as attested to by former Ekiti State Governor- Kayode Fayemi in a recent interview).

However, you know what? Karma have since never left dealing with them. See how they have messed up this nation- running govt based on lies and propaganda? See the economic downturn?

They are still perpetuating the same fuel subsidy corruption they demonised. Bought the media to turn a blind eye but their sin is still finding them out. Whatever goes around, does not only comes around but sticks around. Karma is a batch.

No oppressive, repressive, suppressive, cruel, wicked and evil government have even been worst than the APC. Every soul therein is utterly devillish.

In UK they recommend for their citizens anesthesia administration before pulling of teeth. Here in Nigeria they advised our leaders no anesthesia before, during and after pulling of teeth.

LoL ... Tinubu is equally confused and clueless like his predecessor who never believed in subsidy before ascending the presidency

They'll call you an IPOB sympathizer.

You must be high on mkpurummiri. There's no more subsidy. If you got an import lincense, go get dollar, bring in fuel and sell at your price, nobody is stopping you. The oil sector is now an open market.

If Tinubu does not pay for subsidy, petrol may go for as high as #900 per litre. Nobody will agree to pay that. The value of naira is on a steady decline and it affects everything.

Have you forgotten buhari at a time said subsidy is a scam and he paid the same scam although his nepotic regime.

Tinubu adopting same

APC is a scam

SmartPolician:
If Tinubu does not pay for subsidy, petrol may go for as high as #900 per litre. Nobody will agree to pay that. The value of naira is on a steady decline and it affects everything.

Well Ghanaians and Nigeriens and most of our neighbors are paying that high. And for Ghana and Niger, their refineries work.

Nigeria has been pretending fuel is cheap. It cost us 4 working refineries

SmartPolician:
If Tinubu does not pay for subsidy, petrol may go for as high as #900 per litre. Nobody will agree to pay that. The value of naira is on a steady decline and it affects everything.

No mind these Ipobi simps!
They'll never see any good in APC or Tinubu and no evil from IPOBI and LP!

APC is wholly devilish while LP is Jesus!

I kind of secretly expected APC to bring back subsidy

When it comes to decision making, politicians in Nigeria , (and for that matter in most of the world) don't always make the right decision. They make the decision that would get them elected.

All I know is APC and Tinubu want to win at all costs. If it costs the economy so be it


We should have removed subsidy back in 1992. But then again, this is Nigeria

AntiChristian:


No mind these Ipobi simps!
They'll never see any good in APC or Tinubu and no evil from IPOBI and LP!

APC is wholly devilish while LP is Jesus!

Ogbeni, go and take several seats.

APC should have come clean to tell Nigerians what's happening and why.

It took a newspaper that practices investigative journalism to unravel this.

nairalanda1:


Well Ghanaians and Nigeriens and most of our neighbors are paying that high.

Those countries don't have the quantity of crude oil and gas we have here.

It's senseless to tell your citizens to pay a lot of money to buy things they should have competitive advantage of. This is what leads to oil theft.

SmartPolician:


Ogbeni, go and take several seats.

APC should have come clean to tell Nigerians what's happening and why.

It took a newspaper that practices investigative journalism to unravel this.

Na APC dey do am?

SmartPolician:


Those countries don't have the quantity of crude oil and gas we have here.

It's senseless to tell your citizens to pay a lot of money to buy things they should have competitive advantage of. This is what leads to oil theft.

It is not about quality

It is about selling refined products at a profit so that there is money to pay for the running of refineries

Nigeria subsidised fuel. As a result fuel was sold at a loss and the subsidy paid did not cover the loss, and the subsidy also provided food for the corruption and sabotage that ruined our refineries.

As a result of the insanity, we lost refining capacity. That we are only just bringing back. That is about to be jeopardised by APC attempt to bring back subsidy.

Venezuela crude is very sulphuric. It costs a lot to refine. Their government sold petrol at 40 naira. Result: damaged refineries .




You won't let government set your price would you? Profit is needed for the sustainability of a business. Remove the profit motive and serious issues result.

Anyway, we all want fuel at 40 naira, not so?

nairalanda1:


It is not about quality

It is about selling refined products at a profit so that there is money to pay for the running of refineries

Nigeria subsidised fuel. As a result fuel was sold at a loss and the subsidy paid did not cover the loss, and the subsidy also provided food for the corruption and sabotage that ruined our refineries.

As a result of the insanity, we lost refining capacity. That we are only just bringing back. That is about to be jeopardised by APC attempt to bring back subsidy.

Venezuela crude is very sulphuric. It costs a lot to refine. Their government sold petrol at 40 naira. Result: damaged refineries .




You won't let government set your price would you? Profit is needed for the sustainability of a business. Remove the profit motive and serious issues result.

Anyway, we all want fuel at 40 naira, not so?

Oga, I no get your time. I have made my point.

Those who live in Niger Delta understand what I mean. I won't write more than this.

Racoon:

It is highly regrettable and a national catastrophe that all those who demonised (spearheaded by Tinubu, Buhari, Wole Soyinka, Femi Falana, Yoruba actors,etc) former president Goodluck Jonathan over the fuel subsidy palava are yet to apologised to this man despite playing politics of hatred, dehumanisation and denigration of the office, person and family of the former president.

They have absolute zilch knowledge of the working dynamics of fuel subsidy but played needless politics with this sensitive national issue( as attested to by former Ekiti State Governor- Kayode Fayemi in a recent interview).

However, you know what? Karma have since never left dealing with them. See how they have messed up this nation- running govt based on lies and propaganda? See the economic downturn? They are still perpetuating the same fuel subsidy corruption they demonised. Bought the media to turn a blind eye but their sin is still finding them out. Whatever goes around, does not only comes around but sticks around. Karma is a batch.

This is what made a whole UK pm to resign over total failure of policy, but this one is still here making mouth. This is enough to make a leader to lose his/her seat.

SmartPolician:
If Tinubu does not pay for subsidy, petrol may go for as high as #900 per litre. Nobody will agree to pay that. The value of naira is on a steady decline and it afffects everything.

so you mean that subsidy is back

Ezmans:
so you mean that subsidy is back

they shamelessly brought it back. No honour at all. The man ought to resign over this failure

AntiChristian:


No mind these Ipobi simps!
They'll never see any good in APC or Tinubu and no evil from IPOBI and LP!

APC is wholly devilish while LP is Jesus!

so after funfare of removing subsidy it is back again sorry nigeria

Ezmans:
so after funfare of removing subsidy it is back again sorry nigeria

Nigeria replies "sorry boy"!

This is what happens when you have a smart criminal at the helm.

They only think in terms of what they can get out of the system.

When I discussed with some clown about how unilaterally removing subsidy will not solve the problem, I was harangued & insulted. Yet, I was the was that was banned.

That clown will soon come to justify this Deception

AntiChristian:


No mind these Ipobi simps!
They'll never see any good in APC or Tinubu and no evil from IPOBI and LP!

APC is wholly devilish while LP is Jesus!

Lolsss.

Ur Head Correct so?😄

The Guy is Criticizing Tinubu/APC for going Back to their Vomit!
Druggie FOOLISHLY Removed Fuel Subsidy and now he has seen it's Effects, he is Secretly bringing it back😏🙁

Hatred for IPOB have Finished ur Brains! 😔😌

Vinnie2000:


Lolsss.

Ur Head Correct so?😄

The Guy is Criticizing Tinubu/APC for going Back to their Vomit!
Druggie FOOLISHLY Removed Fuel Subsidy and now he has seen it's Effects, he is Secretly bringing it back😏🙁

Hatred for IPOB have Finished ur Brains! 😔😌

They are the perfect example of the sheep in animal farm.

BAT removes subsidy, they chant & praise.

BAT denies paying subsidy, they chant & praise.

BAT secretly starts paying subsidy, they chant & praise.

Vinnie2000:


Lolsss.

Ur Head Correct so?😄

The Guy is Criticizing Tinubu/APC for going Back to their Vomit!
Druggie FOOLISHLY Removed Fuel Subsidy and now he has seen it's Effects, he is Secretly bringing it back😏🙁

Hatred for IPOB have Finished ur Brains! 😔😌

Sorry IPOB symp, I don't care if subsidy is back or not. Inasmuch as we are not borrowing to pay it.

I'm ok!

It'll be hot at the start!

AJAERO AND HIS NLC ARE STEALING SUBSIDY BACK.

I don’t know if Tinubu and his team are finally realizing that the problem with fuel subsidy was the monstrous corruption in it and not the subsidy itself. Most of what passed as fuel subsidy was fraud. Any government worth the name should be able to tackle the corruption and administer subsidies for the collective benefit of Nigerians.

Apt!

ivandragon:



They are the perfect example of the sheep in animal farm.

BAT removes subsidy, they chant & praise.

BAT denies paying subsidy, they chant & praise.

BAT secretly starts paying subsidy, they chant & praise.

Very funny Pple. 😄

Their MUMU Strong ehn. 😯😔😌

SmartPolician:


Oga, I no get your time. I have made my point.

Those who live in Niger Delta understand what I mean. I won't write more than this.

Okay...

But the point is clear. For refineries to work well, all their product must be sold at a profit. The only subsidy that works here is in form of a tax break or government grants. Not forcing a refinery to refine fuel at N900 per liter and sell the same fuel at N40 or less to let the poor breathe.


P.S

Petrol refined in illicit refineries is refined from stolen crude. That's why it is dirt cheap. If they had to pay for crude, the cost goes up.

Vinnie2000:


Very funny Pple. 😄

Their MUMU Strong ehn. 😯😔😌

This is more than mumu.

There is a fundamental genetic flaw.