Saturday, November 18, 2017
Add this page to Blinklist Add this page to Add this page to Digg Add this page to Facebook Add this page to Furl Add this page to Google Add this page to Ma.Gnolia Add this page to Newsvine Add this page to Reddit Add this page to StumbleUpon Add this page to Technorati Add this page to Yahoo

ideas have consequences

You are here:Home>>Strategic Research & Analysis>>Emeka Chiakwelu>>Removal of fuel subsidy: Poor Timing and strategizing
Monday, 09 January 2012 19:42

Removal of fuel subsidy: Poor Timing and strategizing

Written by Emeka Chiakwelu
Rate this item
(5 votes)
President Jonathan President Jonathan

The whole world is watching as Nigeria descended into chaos and uncertainty due to the removal of fuel subsidy.

The social fabric of the society appears to be shifting and things are no longer at ease as protesters gathered steam and momentum. The brinkmanship between the presidency and labour is something to be given the deserving attention. Was the subsidy removal justified or ill-timed compounded with poor strategizing? It depends on who was answering the question, the government and the poor masses have different perspectives and justifications.


Financial Times of London reported that, “Goodluck Jonathan, Nigeria’s president, faces a growing backlash to his sudden removal of a fuel subsidy programme, seen as one of the few contributions the government of Africa’s biggest oil and gas producer makes to its people’s wellbeing. Amid a chorus of criticism from opposition leaders, thousands of protesters staged a second day of demonstrations across Africa’s most populous nation after petrol prices more than doubled overnight."


No matter how wonderful things the removal of fuel subsidy will bring to the people as President Jonathan and his economic team promised, Nigerians are not buying it.   People are protesting and refuse to settle for the subsidy removal. The Nigerian leadership we can see by now did not sell it well to the people nor convince them of the incoming goodies that will supposedly follow through. It will not take a rocket scientist to figure out why the people do not accept the fuel subsidy removal but rejected the offer of empty appeasement.


First and foremost, it is difficult to hold an abiding conversation and agreement with a hungry person. The reality is that seventy percent of Nigerians live in poverty and etched a miserable living with less than $2 a day. With hyper unemployment and ravaging poverty, the nominal benefit that Nigerians can point to coming from the huge petroleum deposit as an oil producing country is the fuel subsidy.


"In a New Year's Day announcement, Nigeria's government said it would scrap a 38-year-old subsidy that had kept motor fuel priced at just 65 naira a liter, or $1.55 a gallon. Gas prices more than doubled throughout the country on Monday and continued to inch up to about 140 naira a liter in Lagos, the commercial capital, on Wednesday. Economists warn that the jump in fuel prices is almost certain to push up prices for food and household items in the country of 167 million people, 70% of whom live on $2 a day or less. Inflation has topped 10% in all but two of the past 40 months," Wall Street Journal reported.


From any angle one chooses to look at it, most Nigerians do not trust their government. Their lack of trust and disappointment with Nigerian government was not developed on a hallow ground. Prior to this many Nigerian governments have disappointed their citizens for a long time. Therefore it will be difficult for any administration no matter how honest or sincere it maybe to convince Nigerians otherwise. President Jonathan and his economic team did not lay down the necessary steps to carry their people with them. To tell Nigerian people the importance of the removal of fuel subsidy will not compel them to accept the short-time suffering and discomfort that will come from the subsidy removal.


The economic wellbeing of the country at the moment is neither encouraging nor warrant such a new hike in petrol price. The majority of the people in the country is relatively poor and desperately relies on the affordable petrol and kerosene. The moderately decent transport fare for survival is going up tremendously. When the people survived with less than $2 daily and a gallon of petrol stood at $4 and rising; how is it possible for the poor to survive together with higher food prices and transportation?


Poor strategizing was a major problem to Jonathan Administration and his economic team. The was paucity of strategic planning without soft cushion for the public. There was no trust between the people and the ruling class, for the administration foremost pre-subsidy removal goal would be to establish a comfort level and rapport with the Nigeria people. The government could not actualize a quantifiable trust that it can count on before it the desired action.


Nigeria may need to remove fuel subsidies inorder to deregulate upstream drilling. By so doing  will result in the attraction of deep-pocket investors into upstream drilling and that will subsequently lower the price of petroleum products including petrol and kerosene. The problem is that it will take a reasonable long time for all these undertakings and Nigerian public may not have the stomach to wait for such an extended time.  Nigerians do not buy into the process that they promised that the outcome will be favourable to them due to lack of confidence they have for the government. The government does not have a good track on keeping its promise; therefore there is nothing for the people to build upon. The house of Nigeria has fallen and the people are not ready to pickup the rabbles.


The timing for the government’s action maybe its greatest vulnerability; while the government is already battling the major headache coming from Boko Haram, now it will compound the challenges coming from the country's Labour Union and other restless organizations together with the hyper-energetic youths. That is too much load to be carried by this administration that has not strengthen its feet on the ground.

Speaking to CNN, Feyi Fawehinmi, an accountant and analyst, said "When you have so much poverty, a lot of business and lives have been built on petrol being at N65, which is not exactly cheap, even at subsidized rates. People are just not moving out of poverty quickly in Nigeria. There is an economic case but this is not something that can be quantified economically, the government cannot tell how many businesses will be ruined or even how many people will die," Fawehinmi continued. "The impact will be so wide-ranging. There should have been a plan to remove this in a sensible way, not in this crude manner."


Wall Street Journal stated that "President Goodluck Jonathan is unlikely to yield. Nigeria had been spending about 1.2 trillion naira ($7.5 billion) a year to maintain the price—money that came directly from its oil earnings, never entered the federal budget and could have been better used, his aides have argued, for infrastructure improvements on roads and power plants."


That is not good news for although the subsidy has been expensive but at same time the people needs the subsidies to make their lives little less depressing. There is no way out of this one for it looks like the administration is not going to back down nor is the people willing to let go.


Nigeria needs peace and stability to continue with its economic growth and implementation of other less troubling economic reforms including restricting of the surging inflation and provision of infrastructures. But when everything comes to a halt because of fuel subsidy removal everybody will be a loser. The economic growth will stop, inflation will soar and investors will recall their capitals.  There is still time to find solution in the light before it turns to corpulent darkness.




Last modified on Monday, 16 January 2012 15:23


  • Comment Link JacobHycle Thursday, 16 November 2017 10:42 posted by JacobHycle

    Солнцезащитные очки Opposit Очки солнцезащитные Tm 017S 01 NRKI.RU - Click here!..

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link CraigHeita Tuesday, 14 November 2017 13:47 posted by CraigHeita

    Приобрести можно на веб-сайте

    Как похудеть за неделю на 10 кг в домашних условиях.
    Как похудеть на 10 кг за одну неделю.
    Как похудеть за неделю на 10 кг в домашних условиях? Это непросто и грозит рядом побочных эффектов. Однако если экстренное понижение веса вам действительно необходимо, есть полезные рекомендации, как это сделать.
    Последствия для здоровья.
    Сбросить 10 кг в течение одной недели – это сильный стресс, который не каждый организм может выдержать без негативных последствий. У женщин резкое снижение веса может сопровождаться болями в сердце, головокружениями и сбоем менструального цикла. Кроме того, для человека, который весит 70-80 кг, такой результат за неделю недопустим в принципе, необходимо четко осознавать свои возможности.
    Будем честными: резкое похудение за такой короткий срок без хирургического вмешательства может быть достигнуто только за счет потери влаги, а не жировых отложений. Поэтому чтобы поддержать достигнутый результат, вы не ограничитесь одной неделей. Необходимо будет долгосрочно поменять свой образ жизни.
    Жесткая диета.
    Эффективное средство для тех кто мечтает как похудеть за неделю на 10 кг – перейти на «голодную» диету. Особенность ее в том, что организм в течение недели почти не получает жиров, белков и углеводов, благодаря чему вес стремительно снижается. Один нюанс: прим.
    Рацион диеты-голодания состоит из жидкостей. В течение дня нужно выпивать литр минеральной воды, на следующий – литр маложирного молока. В четверг можно добавить тарелку салата из вареных, свежих овощей. К субботе организм почти истощится, поэтому для поддержания сил нужно съесть одно вареное яйцо, 100 г постного мяса и пару кислых яблок. Воскресенье заканчивается 100 г маложирного творога и стаканом кефира.
    Чтобы не поддаться соблазну съесть кусок мяса или хлеба, разделите дневной рацион на маленькие части, это поможет заглушить чувство голода. Жесткая диета может обострить хронические заболевания, привести к неполному перевариванию пищи, поэтому вместе с водой нужно ежедневно пить витамины, чтобы поддержать силы.
    Народные средства.
    Одним из популярных в последнее время способов быстро сбросить вес считаются народные средства. Настои и соки можно комбинировать с жесткой диетой, чтобы получать полезные вещества и нормализовать обмен веществ. Так, капустный сок ускоряет метаболизм, препятствует образованию жировых отложений. В день необходимо выпивать по 3 стакана.
    Настой горькой полыни применяется при ожирении. Одна столовая ложка заливается стаканом кипятка и настаивается полчаса. Настой необходимо принимать три раза в день по столовой ложке за 30 минут до приема диетической пищи. В течение недели желательно также принимать ванны с добавлением соды, которые помогают параллельно уменьшить проявление жировых отложений на животе.
    Думая над тем, как похудеть за неделю на 10 кг в домашних условиях без диет, обратите свое внимание на физические нагрузки. Это непременное условие быстрого похудения при условии, что вы потребляете много овощей и фруктов.
    Оптимальное время для занятий физкультурой – полдень или 17-19 часов и не раньше чем через пару часов после принятия пищи. Обязательным условием эффективных занятий являются ежедневные прогулки на свежем воздухе. А через день нужно выполнять комплекс из следующих упражнений: приседания, выпады на одной ноге, упражнения для груди и талии. Систематические нагрузки приведут к наращиванию мышечной массы и стремительному понижению веса.
    Похудеть на десяток килограммов – сложная задача. Но если вы найдете в себе силы каждый день ограничивать себя в еде и заниматься физкультурой, то получите прекрасный результат.

    Приобрести можно на веб-сайте

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Cristina Tuesday, 07 November 2017 17:54 posted by Cristina

    tirar tarot do amor gratis tarot amor tarot del dia gratis de alicia galvan

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Lila Tuesday, 07 November 2017 17:45 posted by Lila

    tirage tarot marseille travail gratuit tarot gratuit meilleur tarot

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Ronny Thursday, 02 November 2017 06:04 posted by Ronny

    el tarot de osho zen con los 78 arcanos tirada del tarot del dia gratis tarot gratis
    para conseguir trabajo tarot si o no para movil tarot garden lectura de tarot en atizapan de zaragoza tarot trabajo
    gratis 2015 libro tarot y numerologia tarot rafaela vilchez
    oraculo maya gratis 2014 tirada de cartas gratis de tarot jogo de
    cartas tarot buzios gratis tarot economico visa 5 euros tarot
    libro abierto el mundo tarot amor gratis si ono tarot gratis josnell hada de azucar horoscopo y tarot
    diario gratis horoscopo tarot gratis arcanos reina bastos tarot
    tiziana tarot telefonico bueno y barato tirada del tarot
    gratis para hoy flor tarot virgo junio 2015 tarot on line tirada gratis
    tarot gratis del amor alicia galvan tirada tarot gitano del amor significado del tarot de marsella pdf tarot gratis del dia carta
    11 del tarot egipcio significado tarot de pareja los arcanos tarot cartas gratis si o no tarot de sole foroactivo tarot i ching del amor gratis videos de tarot de marsella horoscopo
    leo tarot gratis tarot del amor 3 cartas tarot libro abierto 7 de copas tarot infidelidad tirada gratis tarot
    y horoscopo tarot crowley tirada gratis tirada de tarot del amor
    gratis de hoy secretos del tarot emperador tarot pareja tarot terra tirada del dia tarot ana maria fernandez tarot y numerologia gratis la
    justicia en el tarot del amor tarot gratis para saber si mi pareja me
    quiere tarot del si o no gratis el oraculo tarot soleil et
    diable horoscopo diario piscis tarot amigo

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Blanca Thursday, 02 November 2017 00:50 posted by Blanca

    zone de rencontre poids lourds site de rencontre xpress exemple profil site rencontre
    homme super rencontre site gratuit se rencontre photo de profil site de rencontre russe magazine rencontres intimes rencontres
    bretonnes tice rencontre entre fille au pair rencontre vaulx en velin photo pour site de rencontre comment faire
    la rencontre d'une fille premiere rencontre apres rupture message de rencontre d'amour message rencontre meetic rencontre avec cougar site de rencontre
    top 10 rencontre sex lille site rencontre roulette
    site de rencontre 13-14 ans site de rencontre dans la somme
    gratuit rencontrer l'amour a 50 ans site de rencontre allier 03 rencontre femme asiatiques rencontres amicales paris rencontre femme
    meetic je rencontre 23 point de rencontre ocean atlantique et pacifique site de rencontre 100 gratuit 35 application de rencontre once
    elite rencontre est ce gratuit forum site de rencontre sexe faire rencontre avant que nous nous
    rencontrions premiere rencontre avec un homme balance rencontre en isere quimper rencontre
    rencontre photo paris 10 rencontre en camping car norauto toulon bon rencontre rencontre sexe lot et garonne site de rencontres gratuits pour les hommes rencontre infidele gratuite site de rencontre
    meetic payant site de rencontre pour ado ami sites de rencontres pour celibataires drague rencontre rencontre ado 15-25 ans rencontre sexe bayonne site de rencontre gratuit 76 pour

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Beau Wednesday, 01 November 2017 22:38 posted by Beau

    tarot 24 horas fiable tarot tirada gratis telefono tiradas d tarot gratis consultas
    de tarot tarot del dia de hoy geminis consultas del tarot gratis en linea tirada
    tarot gratis vidente consulta de tarot telefonico
    tarot mensual gratis 2015 tarot terapeutico curso el ahorcado tarot marsella
    lectura del tarot del amor gratis en linea tarot crowley significado cartas horoskop tarot darmowy le tarot noir tarot el oraculo del dinero tarot y horoscopo del dia gratis tirar cartas
    tarot oraculo tarot daily horoscope libra angel tarot doreen virtue secretos del tarot carro agora
    tarot tirada tarot economico 0 41 minuto horoscopo carta natal tarot gratis youtube tarot gratis 2015 tarot virtual de verdad gratis como se lee las cartas del tarot signos del tarot 2017 significado el mundo tarot el ermitano tarot de marsella jodorowsky lectura gratis de tarot del amor tarotamigo horoscopo venta de
    cartas del tarot en barcelona milanuncios tarot gratis whatsapp significado del tarot wicca celta tirada de
    tarot gratis para hoy para echarme las cartas del tarot tirada de tarot rider waite
    gratis tarot por sms cartas de tarot rider mercadolibre leida de tarot gratis 2017 tarotamigo horoscopo cartas de tarot de marsella el ermitano tarot tiempo tarot
    aramistic el colgado tarot significado amor tarot del amor gratis 2017 libros
    sobre tarot pdf gratis telefono tarot pepita vilallonga significado carta
    42 tarot egipcio

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Cynthia Wednesday, 01 November 2017 17:34 posted by Cynthia

    plan cul eure plan cul a nantes plan cul a montpellier plan cul sur grenoble
    plan cul savigny le temple site de rencontre pour plan cul plan cul le raincy plan cul sans carte bancaire plans cul toulouse plan cul haute savoie plan cul femme agee plan cul
    saint ouen plan cul sur annecy plan cul berck plan cul
    16 plan cul 9 rencontre gay plan cul plan cul thonon les bains femme
    cherche plan cul paris plan cul villefranche de rouergue plan cul
    aubervilliers plan cul saint cyr l'ecole plan cul antibes plan cul hetero plan cul noyon plan cul dans le 59
    plan cul le pont de claix plan cul a bordeaux plan cul saint ouen plan cul montelimar plan cul alsace plan cul plaisance
    du touch plan cul cogolin plan cul gay cannes plan cul bayeux plan cul annonce tchatche
    plan cul plan cul a dijon plan cul tremblay en france plan cul nevers plan cul figeac plan cul chauny asiatique
    plan cul plan cul ain plan cul 9 plan cul 21 plan cul anzin plan cul gay nice
    plan cul oyonnax plan cul etudiante

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Denese Wednesday, 01 November 2017 15:42 posted by Denese

    isis tarot cards the moon tarot card reversed four swords tarot love queen of wands
    tarot timing free tarot live yes no dorian tarot card poster tarot
    temperance 3 of pentacles tarot wiki tarot card for the day trusted
    tarot knight of wands tarot sol aguilar opiniones tarot
    meaning wheel of fortune tarot card meanings 8 pentacles la justice tarot
    de marseille free celtic cross tarot reading online tarot love readings
    free tarot teading what does the emperor tarot card mean luciferian tarot cary-yale visconti tarot
    deck wheel of fortune tarot future mythic tarot nine of pentacles
    former flame tarot best tarot reading in the world el tarot y la religion card in a tarot deck
    hierophant tarot love meaning trusted tarot knight of wands tarot meaning queen of swords reversed yesno tarot tarot cards 4 cups golden botticelli tarot deck biddy tarot ten of pentacles tarot reading new zealand tarot classes perth
    tarot band official site free accurate tarot pics of all tarot cards bohemian path tarot cancer tarot card reading celtic cross what does the fool card mean in a love tarot reading salems tarot
    salem tarot tarot card meaning tarot year tarot jack of spades five of swords tarot feelings
    free online tarot one card meaning of the thoth tarot cards art deco tarot deck tarot card
    reading for future prediction

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Carmelo Wednesday, 01 November 2017 13:25 posted by Carmelo

    tarot goddess burning question knight of swords tarot career
    six wands tarot card romantic tarot images the magician tarot meaning love death tarot love reading tarot the fool
    moon tarot card deck msn tarot easy tarot reading guide images of all 78 tarot cards polski tarot darmowy free tarot divination cancer
    tarot horoscope august 2017 thoth tarot major arcana meanings 3 of wands tarot verbatim free tarot reading about love life page of wands tarot
    meaning chariot tarot love advice black white tarot cards
    empress tarot card reversed happy birthday tarot card seven of swords tarot card carnivale hbo tarot deck best tarot cards for success 9 of cups
    tarot love meaning scorpio love tarot reading august 2017 destiny tarot cards yes no tarot cards meaning four of wands tarot card love fairy tale tarot
    lisa hunt the devil tarot in health four of cups tarot card
    meaning today tomorrow tarot tarot 3 cups love tarot card
    meanings celtic cross spread tarot divinatoire amour en ligne nyc tarot cards tarot cards pictures
    clip art free tarot reading love reading inspiration tarot reading
    tarot cards meaning lovers lay the tarot card the world dishonored tarot 3 of cups reversed the wheel tarot reversed job tarot
    golden dawn tarot astrology tarot reading dublin 2 fairy tarot decks 2 cups love tarot reversed

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Add comment