Saturday, June 16, 2012

My own thoughts or two cents on Naija's subsidy removal

originally written by Adetokunbo Olaoluwa Adesanya on Wednesday, January 18, 2012 at 11:26am on Facebook

1. It was done drastically.. should have been a gradual process with public knowledge of the plan
2. What does the government intend to do with the funds formerly used to subsidize oil production.. The Nigerian government is not known for good management and accountability; it's best known for corruption and mismanagement.
2. Does the government truly care about Nigeria and Nigerians?
3. Will the funds be used to reduce national debt and poverty while improving the local economy.
4. Will there be true financial accountability not only from the funds used for the subsidy but for the national treasury as well.
5. Does the government plan to rebuild the key elements of a strong economy i.e. infrastructure, agriculture education etc

The Nigerians fuel subsidy removal is not necessarily a bad thing but the way it was done shows the intelligence or indifference of the powers that be. The removal has far reaching consequences even beyond the local economy but on an international level as well. For example, we are basically subsidizing the cost of energy for other countries at our own expense. In addition, we borrow money to subsidize the cost of fuel: This increases our national debt and further reduces the purchasing power of the Naira. Nothing lasts forever and neither does Nigerian oil. It's funny how we purchase the refined products at an higher price when we can build and maintain our own refineries and build a culture of maintenance. It will be great to explore alternatives like solar, wind power and rebuild our local agriculture and stop the importation of goods. This way the local economy is strengthened and we can export not only oil but other goods that can be used to rebuild our economy and hopefully bring the masses out of perpetual poverty, rebuild the "middle class" and redistribute wealth. We can go on an on about the subsidy removal but I don't think that is Nigeria's biggest problem. It's runs much deeper than that.. anyways I reiterate that this is just my own thoughts on the subsidy removal. Oh, we subsidize the cost of oil here in the US too.. I believe Americans should actually be paying a lot more for the cost of fuel. The avg $3.00 per gallon we pay at the pump is chicken change to what we really should be paying but we as Americans "can't go for that" Our economy will be crippled, brought to it's knees and will come to a stand still.. I guess that's why we have reserves and refuse to use it.

1. I did not proof read this.. straight of the dome and I have to get back to work
2. I'm not an expert on the subject

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