Saturday, 23 May 2015

Politics of fuel price increases in Nigeria






The Federal Government always present fuel price hike as the solution to problems in the economy anytime they want to increase the pump price of petrol. The history of fuel price increase dates back to the Gowon administration in 1973 when it was increased by 40% from six kobo to eight point four-five kobo (6 kobo - 8.45kobo), and this trend has been  followed by subsequent administrations till date. But in all the increases the Obasanjo administration has been the most notorious. He was the first President to increase by 70% in 1978 from nine kobo to fifteen point three kobo (9 kobo - 15.3kobo) as a Military Head of State  and as civilian President, he increased the pump price  six times and had a cause to revert it only once in 2000. Also the Abacha administration was not any better with fuel price increase as he reduced the price twice but has being the only President in the country to increase fuel price with over 362% hike in 1994 from three naira twenty-five kobo to fifteen naira (#3.25kobo - #15), which resulted in a slight reduction two days after severe Labour pressure to eleven naira (#11). But only one President has made positive history with fuel price regime in the country. And that is Late President Musa Yar-Adua, who after a month in office in June 2007 reduced the price of fuel from seventy -five naira to sixty-five naira (#75 - #65).  He maintained that price till he passed on while in office in 2010. These increases have always had there toll on the social-economic of Nigerians. 
Before the Oil boom in the 70’s the nation’s economy was largely dependent on revenue from the Agricultural sector that brought about stability in the economy, with the Naira at one point in history been more valuable than the dollar and pound. Nigeria was a country people came to seek greener pastures and also helping other nations boost their internal politics and economy. Nigeria’s palm oil seedlings was adjudged the best at a time when Malaysia came to Nigeria to collect oil palm seedlings, but today the various agricultural edifices Nigeria was known for have all disappeared. Is it the groundnut pyramid in the North, or the Cocoa and Timber in the West that the region used in making the westerners the most educated tribe in Nigeria or the oil palm seedlings in the East that made transport business a main trade for the Easterners who transported palm oil from the East to other parts of the country?  Can it be said that when oil was discovered in commercial quantity in Olobiri River State, that Mother Earth knew that black crude would result in massive exploitation, corruption and a tool to keep the nation torn against herself? Or make the Niger-Delta region a trigger of the gun waiting to explode due to continuous neglect of a people whose land and rivers have been degraded but never enjoyed what their land produced or a complete neglect of other sectors of the economy that has made our economy a recurring decimal of failure? 
 
When President Jonathan gave Nigerians one of the worst New-year gifts that no President had given in the history of this country on the 1st of January 2012 by increasing the price of fuel with about 120%, he never expected the outcome of that action. Nigeria became the center of attention with a massive protest that led to what is now called the OCCUPY NIGERIA MOVEMENT. That action showed the anger the masses had been groaning under for a long time, with an administration that has only made Nigeria classed as a terrorist nation due to the frequent deaths associated with the Boko Haram sect in the North. Nigerians from across the country came out to the streets of major cities refusing to accept a gift from their President at a time the nation was in a festive period, and many families had made and spent based on their budget only to realize that the New Year was going to be a time to tighten their belt. The protest that greeted that fuel hike led to the death of twenty Nigerians who were gunned down by security operatives that were overwhelmed by a people, that they never believe would revolt due to their constant siddon look stand and I go beta slogan.


The Presidency using the State owned media as a puppet resorted to propaganda that the increase in price was the only way for the nation not to go broke, and also reduce the grip of the cabals who are unknown but in charge of the oil sector by importing petroleum products that could not be properly accounted for. The Presidency talked about a cushioning effect and palliative measures that would be put in place, to reduce the burden of the removal of oil subsidy since his administration could no longer pay for subsidy on fuel. The promises made by the President since the recent increase in the price of fuel is yet to be felt by the people. The major reason why Nigerians always see the increase of fuel as a death sentence is because the nation is powered by generator due to the epileptic state of the power sector. In most cities and towns across the country seven in ten homes has a generating set to provide electricity for their use. Anytime there is an increase in the price of fuel everything and every sector feel the brunt of the increase. The price of food, transportation and most essential services also increase. What concerned Nigerians are after is that, can there be an administration in this country that would run a successful Government without resorting to fuel price increase?




No comments:

Post a Comment