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Fuel Subsidy Removal: A Layman's Analysis
11/06/11
Fuel Subsidy Removal: A Layman's Analysis
*Nigeria: Fuel Subsidy Removal - A Layman's Analysis
By Amiru Adamu
Though Dangote has said it all, that “fuel subsidy removal is a foregone conclusion”, we the citizens of the Federal Republic of Nigeria are at liberty to express our feelings on this issue that is bound to bring us hardship and worsen our situation.
I am not an economist so I won’t draw some fancy scales explaining what will happen if so and so happens, I rather prefer to explain it in a layman’s language with the hope that one of the IMF agents in Nigeria looks at the issue from our (masses’) own perspective and advise I.M.F to reverse their instructions, that Nigerians should cease to enjoy fuel subsidy because I am not convinced that any Nigerian can advise that fuel subsidy should be removed in this ‘hard times’. ( Continues below..... )
Photo Above: Nigerians queue up to buy fuel at a filling station.
Experts have forecast that when fuel subsidy is removed a litre of fuel will cost at least N140.It can be said that every home in Nigeria uses fuel, if not in their vehicles then for a power generating set which has become a necessity for all who can afford to buy one, because the power supply situation in Nigeria is nothing to even think about writing home about, in other words hopeless. An average power generating set consumes about 5 litres for it to work for about 6 hours daily; 5 litres presently cost N325 and will cost N700 when the subsidy is removed. Over 50% of Nigerians own cars and motorcycles that are fuelled by P.M.S (petrol), though a press statement attributed to the minister of petroleum argued that “the masses travel on big mass transit vehicles which run on diesel”, they also claimed that buses in places like Lagos, convey workers to and from their work places. What they failed to take into consideration is the fact that Lagos is just one state out of the 36 states that constitute Nigeria and a survey based on Lagos alone no matter how reliable cannot justify fuel subsidy removal for the whole country. ( Continues below….. )
Photo Above: Workers at work in a Nigerian oil rig
Anyway most cars used by average Nigerians consume about 60 litres of fuel weekly, which presently costs N3,900 and about N15,000 monthly. The removal of fuel subsidy however will increase the fuel expenses of average Nigerians who fill their tanks once a week to N8,400 and about N33,000 monthly.
Had it been that fuel subsidy removal will only affect the price of fuel itself there won’t have been much problem, but its removal will trigger a rise in prices in the Nigerian markets. Food, clothes and all that human beings need for survival will triple in prices. Nigerians are already barely managing to cope with the price rise that the news of the unimplemented minimum wage increase caused. The proposed fuel subsidy removal by the Nigerian government is a political miscalculation that might end up throwing Nigeria into chaos never before witnessed in Africa. ( Continues below..... )
Photo Above: Map of Nigeria showing some major cities, including the Federal capital (Abuja or FCT)
Some political jobbers are trying to convince the government that they have carried out consultations with the people, and that fuel subsidy removal can go on as planned. But President Jonathan needs not to look far for peoples opinion on the issue, let him just read the comments posted to him by Nigerians on his Facebook page and he will know how unpopular this subsidy removal issue is with Nigerians. Stimulating economic growth and ensuring effective penetration of developmental projects is a good policy, but the economists and other specialists that came up with the idea of fuel subsidy removal should use their vast knowledge and sophistication to look for another alternative in the interest of peace and democracy.
Amiru Adamu is the publisher of Northern Wind Magazine.
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18 comments
My president pls dont listen to bad advisers,consider the welfare of Nigerians in all ur policies and God will bless u 
God is watching us
We cannot continue to blame the government for its attempt to remove the fuel subsidy without hearing from them. We cannot grow by doing thesame thing every year and expect different results. If the government will use the proceeds to create millions of substenable jobs for our youths, then lets give the removal of the subsidy a trial. Recently, the government forced all the States to emback on the payment of N18,000 minimum salary which was a good policy to help the working poor men and women in nigeria. If the subsidy is removed, let their be accountability so that the money should be used to create millions of jobs for our youths. That will help to reduse crime by 70%. 
FG shld think twice b4 involving on some drastic decision 2 avoid more crises nd pains. 
Fuel subsidy is worth removing, but not now. Mr President think. Please think and think well. The enemies of your governance are at it again. They have seen that their "boko haram" could not bring down your government. Now they have gone into ruining you through wrong economic advice that will unite the masses against your government. The advice is good, but the timing is wrong. Get electricity and good roads to your credit, and while they are cheering, you can bring in the removal of fuel subsidy. Remember that the Arab mass uprising otherwise called the Arab street claimed the life of the North African strong man, Gadaffi and removed the strong man of Egypt and the wave is still spreading across Arabia even into Europe and America. Who can be spared? Only those who govern with the fear of God, because He is the only Potentate who enthrones and dethrones kings and Presidents. God bless Nigeria and our Presido. 
This revolution will be worse than the Libyan uprising. Nigerians has been taken for granted for too long. Legislators get paid N24million per month while the rest of us wallow in poverty.Jonathan should be very very careful with this. Not just the masses, the military boys are not happy with this N24million per month salaries .YOU CANNOT RAISE FUEL PRICES on the poor masses, PERIOD . . .if you do , we will burn down this country , and you will go down with it . . .like Mommar Gadhaffi. Use your brains.
This will be the turning point . . . and I hope it does'nt happen, because if it does, Jonathan must have then made a fool of himself and will deserve no sympathy from any southerner.
pls i want u people to pls help us to talk to out presendent of our country nigeria,is not trying at all in the country.of cas he knows what to do but is not doing it for us.so pls i want u people to help to talk to him,thank u. 
The proceeeds from this fuel deregulation will never be used for any meaningful development.The politicians will simply steal the money , as usual. . .and nothing will happen to them. That is the " Rule of Law " in Nigeria. What has VAT & Toll-gate proceeds , Increased NEPA-tarriffs,higher import duties. . .the list goes on and on, been used for. Even the money recovered from Abacha and Ibori has been restolen , again .
We, the masses can no longer be fooled anymore .You cannot increase the minimium wage with one hand and take it away with the other hand.
With regard to the proposed removal of oil subsidy, I believe the President has heard enough advice for and against to enable him take a more rational decision on the matter. Whichever direction he goes eventually regarding this matter is as he and his World Bank and IMF advisers like it. It is possible he has made up his mind on the removal as Dangote said, no problem. But when the fire likely to be ignited by the decision blazes on, let all those pushing the President now stay back to extinguish it. A word is enough for the wise. 
De removal of fuel subsidy will lead to Arab countries revolution believe or not mr president, be careful &watchful 
Dear President it is advisable u read ur messages on Fb just d way u read messages b4 d election so as to really understand d thought of d Masses on fuel subsidy. 
IMF via Okonjo Iweala are at it again; it is time to stand up against this neo-colonialist plot to break nigeria up. Who is ready to stand up? Let them gather themselves for a nigerian revolution that must carry everybody along.... If Abuja would not hear reason, they will hear active non-violence revolution. It might be time to carry out regicide - decapitating every old time politician that helped in bringing down nigeria may not be far-fetched. Join me to pray for God to purge nigeria of the evil men in the North, South, East and West of Nigeria. Nigeria must be free. Where are the activists needed in our democratic times? Where are they?
mr presido, during ur campaining, u talk like a saint but now, u wakeup talkin like d stuborn herod. Be warned, evry advice sounds u fooly now. U are failing it by takin many to early grave on fuel sub. Removal. I dont pray for negative revolution, but he who drives automobile wdout brake shld b ready 4 a crash. 
Goodluck, as your name potends, let good luck follow the Nigerian populace through your government. Do not remove the "fuel subsidy". Let the masses give you 3 'gbosas' at the end of your tenure. 
The fg should neva listen to these so called financial analyst! Are all nigerians earning like our legislators? The FG should scrap the so-called constituted economic/financial team and set up another with ordinary real people as members. 
Here we come again. Increment in minimum wage, removal of fuel subsidy. Dear mr president, ur enemies are at work. They hav encouraged u 2 increase salaries which ad litle smile on wokers faces now they are encouraging u 2 take the litle smile away 4rm them indirectly. If i may ask, how much do u pay the senators and ministers and how many of their families are here in nigeria? They only want 2 kill the masses wit their useles laws and analysis. Yes , Nigerian Law is 4 the poor not the rich (senators and ministers) but remember u were 1s an ordinary man b4. 
Double wahala for dead body.let mr badluck remove d fuel subsidy,mayb den he will c the real condition of dis country. in d country of the blind d one eyed man is king 
dis 1 wey una d talk 2 mr. President so, wich 1 in go come d luk now, boko haram o fuel subsidy removal? God is in control 
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