Saturday, January 18, 2020
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 Henrietta Tuesday, 24 October 2017 12:45 posted by Henrietta

    rencontre agricultrice gers site pour rencontre entre ado s inscrire sur un site de rencontre rencontre 74 site rencontre gratuit 03
    site rencontre roulette rencontre sexe ales rencontre a narbonne rencontre entre homme gratuit site de rencontre oise site de rencontre haut de gamme gratuit question pour rencontre site de
    rencontre elite prix rencontrer des personnes site de rencontre ado
    sans s'inscrire rencontrer l'homme de sa vie a 30
    ans ils se sont rencontres par hasard maxi rencontre avis le premier site
    de rencontre rencontre coquine bordeaux rencontre femme gap site de rencontre sans
    photo site rencontre coquine gratuit badoo rencontre inscription je rencontre gratuit en ligne rencontre pour ado rencontres
    hommes russes rencontre gay morbihan rencontre transexuels rencontre en ligne montreal rencontre paris 13
    arnaque sur les sites de rencontre rencontre fille varsovie rencontres rhone alpes rencontre gratuit avec celibataire rencontre femme
    libre femmes celibataires rencontre vernon comment rencontrer des femmes sans payer rencontres amicales calais ou rencontrer des hommes je contacte rencontre homme camping rencontre du soleil rencontrer des personnes hypersensibles rencontre
    sensuelle site de rencontre gratuit au canada rencontres amicales lyon rencontre trans aix en provence
    rencontre dans les landes 3918 rencontre site de rencontre sans photo

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Jodi Tuesday, 24 October 2017 12:09 posted by Jodi

    horoscope mensuel jacqueline aubry cheri fm horoscope poissons
    horoscope aout 2017 horoscope le monde horoscope taureau novembre
    2017 horoscope patricia lasserre horoscopes connaitre son avenir horoscope
    capricorne rtl horoscope 21 fevrier christine haas horoscope balance 2017 horoscope mois de juin sagittaire horoscope serpent du mois horoscope mensuel
    avril balance astroquick horoscope horoscope poisson caractere homme femme actuelle horoscope 2017 sagittaire horoscope poisson journal
    de femme horoscope du cancer moi d'aout horoscope twitter vierge
    horoscope lion vendredi 13 novembre servihoo horoscope horoscope du mois octobre cancer cosmopolitan horoscope juin 2017 horoscope le jardin des anges horoscope
    du jour verseau femme sante horoscope amoureux juillet 2017
    balance calendrier de l'horoscope horoscope au quotidien horoscope du jour lorfm
    horoscope des gemeaux pour 2017 horoscope amour poisson juillet
    horoscope du mois d'octobre balance l'express horoscope juillet cancer
    horoscope juin 2017 horoscope sagittaire octobre horoscope verseau du mois d'aout
    2017 horoscope avec date de naissance et heure avril horoscope cancer horoscope du
    jour astralia horoscope du jour sante taureau horoscope du jour
    amour lion horoscope vierge femme amour horoscope femme vierge homme cancer astrocenter horoscope balance horoscope cancer astrocenter
    horoscope balance travail 2017 horoscope homme capricorne aout 2017 horoscope poisson caractere homme horoscope balance journal des femmes alouette horoscope du jour

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Flor Sunday, 22 October 2017 11:44 posted by Flor

    centre de voyance sophia antipolis hollande demission voyance voyance gratuite astrologie
    tirage carte voyance virtuelle voyance reims horoscope guide de la
    voyance magie voyance numerologie gaya voyance marseille jeux de carte magie voyance montpellier voyance claire voyance avignon tchat voyance immediat gratuit sans inscription voyance tchat amour en ligne alexia voyance colmar voyance en ligne
    rtl voyance sentimentale serieuse voyance en ligne pas cher
    yanis voyance horoscope taureau 2014 jean claude
    voyance chat voyance guide de voyance 2015 voyance gratuite par tchat
    sans attente publicite voyance gratuite annuaire suisse voyance voyance annuaire voyance 100 gratuite par chat developper son don de voyance voyance rapide par telephone voyance
    avec reponse immediate claire voyance avignon avis comment avoir un don de voyance voyance
    gratuite par chat en direct belgique voyance paris 14eme youtube reportage voyance voyance gratuite par email tara tarot en ligne voyance gratuit tirage
    tarot gratuit magie voyance hollande demission voyance boule de voyance gratuite facebook horoscope
    du jour voyance gratuite jeux de carte de voyance gratuite ma
    boule voyance gratuite site de voyance gratuite belgique
    idf1 voyance guillaume annonce voyance particulier site de voyance gratuite et serieuse
    voyance lyon 7 voyance apprendre pascal lencauchez voyance clement voyance

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Robby Sunday, 22 October 2017 07:57 posted by Robby

    theme astral calcul astrologique gratuit en ligne astrologie egyptienne isis signe astrologique belier et taureau
    quel et le signe astrologique du mois de mai signe astrologique chinois signification singe signe astrologique scorpion et
    verseau cancer astrologie homme astrologie de la semaine prochaine caracteristique signe astrologique vierge signe astrologique gemeau ascendant balance
    cours astrologie marseille compatibilite astrologique vierge logo
    signe astrologique lion astrologie diabolique homme lion astrologie azteque gratuit signe astrologique chinois vierge astrologie holistique gratuite ascendant signe astrologique vierge astrologie chinoise lapin de terre
    signe astrologique belier et poisson signe astrologique chinois annee du singe comment calculer le signe astrologique chinois signe astrologique lion aujourd'hui signe zodiaque 22 aout signes
    astrologique chinois dates calcul signe astrologique et ascendant gratuit quel signe astrologique le 10 mars meilleur livre pour apprendre l'astrologie chemin de vie astrologie karmique calendrier des signes astrologique quel signe astrologique pour le 19 novembre signe
    astrologique ascendant gemeaux 26 novembre signe astrologique signe astrologique femme
    poisson et homme vierge tatouage femme signe astrologique poisson signe du zodiaque du mois d'avril astrologie celtique tilleul tirage roue astrologique gratuite compatibilite signe astrologique
    amour astrologie horaire en ligne signe astrologiques dates formation astrologie bordeaux
    24 septembre signe zodiaque quel est le signe du zodiaque le plus
    intelligent signe astrologique lion dessin signe astrologique des stars poisson signe astrologique chinois chevre
    element personnalite astrologique meilleur signe astrologique pour femme vierge symbole astrologie

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Danielle Tuesday, 17 October 2017 10:13 posted by Danielle

    avocat dommage corporel avocat construction avocat criminel avocat
    martinique avocat divorce angers avocat de divorce avocat divorce nancy avocat gratuit
    telephone avocats avignon avocat cotes d'armor
    avocat 9 avocat en pot avocat affaire avocat tarn-et-garonne divorce avocat gratuit
    avocat divorce le mans avocat rouen droit du travail avocat garges les gonesse avocat agent
    artistique avocat specialiste droit des etrangers divorce avocat ou notaire
    avocat miramas avocats affaires familiales avocat marignane avocat specialiste droit du travail rennes avocats caen avocat droit du travail grenoble avocat permis conduire conseil gratuit d un avocat avocat meaux 77 avocat
    divorce avocat reze avocats paris divorce obligation avocat avocat affaire
    avocat paris gratuit avocat bancaire avocat
    victimes avocat eure avocat lens avocat narbonne divorce
    tarif avocat penal avocat denain honoraire avocat
    droit du travail avocat aveyron consulter avocat avocat accident du travail avocat croix avocat licenciement abusif avocat routier

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Reagan Tuesday, 17 October 2017 05:33 posted by Reagan

    spamenmoins arnaque hopitaux iris sud contentieux litige avec artisan recours arnaque au retroviseur bourges service litige colissimo lettre recours contentieux dalo arnaque direct assurance recours contentieux dalo modele arnaque locataire
    arnaque remisereduc fdj arnaqueurs litige avec orange huissier arnaque
    dhl douane contentieux des etrangers arnaque webcam suite arnaques leboncoin voiture site d arnaques litige
    employeur fonction publique litige locataire proprietaire degat des eaux
    signaler arnaque telephonique orange arnaque orange samsung s8 get easy arnaque services contentieux orange akeo arnaque ou bon plan signaler
    numero arnaques arnaque logement lyon cours de contentieux administratif ivoirien recours contentieux suspensif devant le tribunal administratif litige succession indivision arnaque facebook video
    arnaque wrap allo location arnaque juriste service contentieux banque arnaque pince fete
    foraine arnaque contrat sosh plein contentieux icpe arnaque le
    bon coin mandat cash porter plainte assurance arnaque service du contentieux judiciaire arnaque sms 06 arnaque contact location arnaque numericable facture arnaque contact
    skype arnaque webcam skype arnaques bon coin voiture
    arnaque assurance france literie arnaque arnaque le bon coin mail outlook arnaque appartement une arnaque presque parfaite bande annonce

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Gertrude Tuesday, 11 July 2017 04:31 posted by Gertrude

    velo appartement pour maigrir maigrir gratuitement capsule cafe vert maigrir bain glace maigrir que manger quand
    on veut maigrir maigrir en un mois recette de soupe pour maigrir
    rapidement peut on maigrir des pieds faire maigrir
    ses hanches exercice de sport pour maigrir auto hypnose pour maigrir avis maigrir intelligemment vite recettes de grand mere
    pour maigrir macher des chewing gum fait maigrir du visage exercice pour maigrir des cuisse meilleur conseil pour maigrir vite cafe pour maigrir reduction d'estomac pour maigrir pour maigrir
    vite recette pour maigrir avec jus de citron maigrir
    des hanches maigrir avant apres blog

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Emile Monday, 26 June 2017 11:51 posted by Emile

    I appreciate the info on your web sites. Thanks.

    look at here now - click for source - simply click the next internet site - special info - click
    through the next website - mouse click for source - visit
    this link - related website - sneak a peek at this site -
    visit the next website - mouse click the following webpage -
    for beginners - go to the website - made my day - Suggested Resource site - just click the next website page - simply click
    the up coming webpage - link home - inquiry - discover here
    - Recommended Reading - more resources - i was reading this - click homepage
    - visit this site right here - link - click
    the next website page - just click the following document - More Support
    - Read Full Report - mouse click the up coming website page - click the following internet site - Suggested Online site - please
    click the up coming document - straight from the source - Read Much more - page - Recommended Webpage - a cool
    way to improve - discover here - simply click the next internet page -
    source for this article - relevant site - simply click the
    up coming site - click here now - the advantage - learn this here now - Discover More Here - mouse click the up coming website page - Click on - - - - - - - - - http://xn--80ahkcc4aba9adq.xn--p1ai/forum2/member.php?u=30196 - - - - - - - - - - - - - - - - - - - - - -,10636.0.html - - - - - - - - - - - - - - - - - - -

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Abel Saturday, 24 June 2017 14:23 posted by Abel

    You've got one of the better internet sites.

    Suggested Reading - More Information and facts - Suggested
    Browsing - simply click - similar web page - Read More
    In this article - visit this weblink - mouse click the following internet site - Continue - click through the up coming website - try
    this web-site - you can try these out - clicking here - Web Site - similar web-site - click the next web page - Get More -
    visit my home page - just click the following web site - Read Home Page - find out this here -
    read full article - More methods - simply click the next website page - Read the Full Posting - visit the next website page - similar site - simply click the next internet page - visit my
    web site - Going On this page - click here now - he has a good point - this guy - Continued - look
    at more info - look at this website - Going Listed here -
    resources - click the next internet page - visit the
    following internet site - visit the next post - relevant site - Go At this site
    - My Home Page - just click the following internet
    page - click the next web page - dig this - experienced - Suggested Webpage - have a peek at this website - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Gwen Wednesday, 21 June 2017 12:08 posted by Gwen

    Wow, attractive website. Thnx ...

    please click the following webpage - resources - Source -
    you can look here - Read the Full Document - read
    what he said - simply click the up coming internet page - Source - her explanation - click for more info - official source - simply click the following web site - mouse click the up coming website page
    - internet site - Going On this site - Suggested Webpage - our website - hop over to this site - click
    this link - visit my home page - why not try here - previous - source for this article
    - why not look here - why not check here - Visit Home Page - visit
    the up coming website - a cool way to improve - just click the
    next website page - click over here - official site - find out here - visit site - hyperlink -
    mouse click for source - page - click through the next post - view publisher site - click the next post - link - related - Full Article
    - Read the Full Report - check it out - visit website - visit
    the website - hop over to these guys - Read Webpage - made a post -
    news - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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

Add comment