Since the victory of General Mohammadu Buhari of the All Progressive Congress in the March 2015 Presidential election, there have been series of debates and agitations on whether or not the president elect would be pragmatic and resolute in dealing with the problem bedeviling the petroleum industry in Nigeria. The reason for the renewed agitations is as a result of the increasing scarcity and high cost of the products like Kerosene, petrol and diesel. It has created untold hardship for the people and it has stunted socio as well as industrial growth and development of the country.
When Nigeria gained independence in I 960, the people did not know anything like scarcity of petroleum products because the to nation could refined enough petroleum products that was able to meet domestic, industrial and commercial purposes. The price per litre was quite cheap and the products were readily available at the filling station. There as nothing like black market or subsidy. For instance 1982 under the leadership of Alhaji Shehu Shagari, it was 50 kobo per litre of petrol, in 1990 under General Ibrahim Babangida increased to 70 kobo and later N3.25 Kobo in 1992. In I993. General Babangida increased it to N 5. in 1994, the interim National Government headed by Chief Ernest Shonekan increased it to N11, the price was sustained by General Abacha and Abdulsalam Abubakar until 1999 when the nation returned to democratic rule under the leadership of Chief Olusegun Obasanjo. Thereafter, in the year 2000 Obasanjo increased it to N20. later that year Obasanjo increased it to N22. it was again increased in 2001 to N26 per liter. During the second term of Chief Obasanjo the pump price of petrol was increased from N26 to N40. this caused serie of agitation and protest union Nigerians, especially the Labour Unions, which was under the leadership of Comrade Adams Aliyu Oshiomhole, now Governor of Edo State. The National protest brought Oshiomhole to lime in the history of Labour activism.
However, that did not stopped president Obasanjo from further increase of the price of petrol. Infact, it was increased to N45 in 2004 and in 2007 before leaving office as president, Chief Obasanjo increased petrol price to N70 per litre. Indeed, under the civilian administration of Chief Obasanjo, fuel price was increased six time and astronomically too. In 2007, Alhaji Umaru Musa Yar’ Adua of blessed memory reduced the price of a litre of petrol to N65, although. the country had already started experiencing scarcity of petroleum products, and long queue at filling stations. This was mainly due to progressive decay of the nation’s refineries as a result of neglect, coupled with corrupt practices among the operators.
Nigerians enjoyed relatively of stable price of petroleum products for about five years until 2012 when president Goodluck Jonathan increased it astronomically to N1 41 and it was resisted through protest, until lie decided to reduced it to N97 in 2012, despite the reduction, the people were still laced with untold scarcity of the products, and most times many people purchase the products far above the approved pump price in filling stations and in the black market. Long queues were a regular feature in the filling stations cross the country, including the federal capital territory, Abuja. Many small, medium and large scale businesses were adversely affected and many were forced out of operation. Unemployment began to rise, while commercial activities were dwindling, and the economy was declining. Many workers and traders trekked to work and in most cases get to their destination very late. Productivity of workers became low, as man-hour that would have been used at work wasted in trekking or queuing at tilling station in search of petroleum products.
Prior to the 2015 general elections, perhaps in a bid to win the people’s confidence and secure their votes President Goodluck Jonathan reduced the pump price of petrol to 87. Despite the reduction, the products were no where to be found as the worst fuel scarcity hit the nation and her people.
In the midst of these increases, the federal government of Nigeria introduced fuel subsidy in 2005, paying N146 billion to the billion to the so-called oil marketers. Subsidy is the money paid by government to augment the price of a commodity so that it will be cheaper for the people to purchase. But in this case, it was like a Greek gift whereby you give someone with the right hand and collect it back with the left hand. This is so because, each time that happens the products were never available, and the people end up buying petrol and Kerosine above the pump price. From available records the federal government has so far paid a total sum of N7.19 trillion as subsidy between 2005 and March 2015. Many politicians have been implicated for the subsidy scam, but none of them have been sentenced accordingly.
Since the victory of General Mohammadu Buhari in the 2015 general elections, there have been series of debates on whether or not the subsidy should be removed from petrol. Some people have argued that the subsidy should be allowed to stay against the background of the fact that when removed, the pump price of’ the products will increase. Others are of the opinion that the subsidy should be removed for various reason. First, the subsidy regime has not brought about availability of the products and it has led to arbitrary increase beyond the approved pump price. Furthermore, they believed that the subsidy is a scam, as some of the operators have been implicated for corrupt practices. Importantly, they believed that he N7. 19 Trillion so far paid as subsidy by the federal government was enough to either repair the nation’s refineries or build new ones, so that the country could have the capacity to refine crude oil to meet domestic demand as well as for export instead of relying on imported petroleum products.
Indeed, another school thought called on the newly elected president to as a matter of national interest look into the subsidy scam as well as other corrupt transactions in the petroleum industry and other sectors, in order to give Nigerians a new lease of hope and confidence. No doubt the corruption in the energy, and power sectors in Nigeria remains the bane to its social economic growth and development. Above all, the much talked about Petroleum Industry Bill should be implemented without delay in order to give full legal framework to the effective operations of the petroleum industry. That kicking against the bill are enemies of the people and the country and they are the ones benefiting from the subsidy. The Petroleum Industry Bill will not only create conducive business environment. It will also promote the actual development of the oil industry as well as create job opportunities. Therefore, anything done by the in coming administration of General Muhammadu Buhari to sanitize the system will not only be in the right direction, also it will receive the widest commendation both at thome and abroad. Nigeria need a bold and courageous leader like Buhari to wipe away corruption from our national lives.
Fortunately, the change that every well meaning Nigerians have been looking for has come in the election of General Buhari as President and every attempt must be made to utilize it for the overall good of the nation and her citizen.
Desmond Agbama is the chairman Edo State Council, Nigeria Union of Journalists.