Fuel subsidy removal: 21 “JAMB” Questions [Opinion]

1. Why is NNPC reform not more important? Is fuel subsidy is the next government cookie jar after the excess crude account is exhausted?

2. What has happened to the funds on the subsidy removed from diesel? Where are the gains?

3. The SURE document exists for the FG but what of the State Government and the Local Governments?

4. If we refine locally at higher capacity in the future at a cheaper rate and Diezanni Allison Maduekwe on Channels TV says the problem is smuggling, are we not back to the same point where fuel will still be smuggled?

5. If our borders are so loose to smuggle oil, won’t a nuclear device/truckload of arms be smuggled through the same porous borders? How safe are we?

6. What if Iran goes to war with the USA and global oil prices hit the roof, is the average Nigerian subject to such scenarios?

7. Why does it seem as though almost every ministry item in the #2012budget look like an annual template that defies reason such as the 600 newspapers per day for office of VP through analysis of its N45m budget?

8. If oil is imported from a single source in Nigeria through Atlas cove, why is it so difficult? Are meter and chain distribution not made efficient with geotagging technologies?

9. Must deregulation start from the pocket of the average Nigerian? Why not to milk more from IOCs through passage of the PIB Bill?

10. Where is the PIB and why with the opportunity to open up oil sector for indigenous participation, integrate local content bill, create jobs, reform NNPC and rework Nigeria’s oil revenue, has it not been a burning desire of the President  since May 29?

11. How does PPPRA arrive at the landing cost? Why the bridging cost? What of fuel now refined locally? How will government price that? Should we give fuel gotten from Coted’ivoire and South Africa the same landing costs? What is really the relevance of PPPRA in a deregulated environment?

12. How did we arrive at the revenue assumption of N240bn in 2011 budget and why is there no investigation on how we hit N1.4trn? Why is there no one in the dock if we agree the whole system is corrupt?

13. Why are we now put in the state of fear that a Greece-like situation is looming Public debt to GDP: Greece 127% Nigeria 20.4% ..With an annual growth rate of 6% GDP when will reach that level? Japan has a Public debt to GDP of almost 200% why has it not crumbled. Greece issue is peculiar due to excessive cheap borrowing from a monetary union, Greece has no competitive resource within its region to pay back. If we will become Greece, where are the scenario analysis?

14. NEEDS, SEEDS, roadmaps, blueprints, Vision 2010, Vision 2020, NEPAD now SURE Document, 7 point agenda, Transformation Agenda…is our cabinet not getting dusty?

15. Must we say because Turai made a cabal out of Yaradua’s death, we should scrap the Presidency?

16. Why did Mr President have to beg for reduction in cement prices in a deregulated market which were kept so high by few importers? Are cement prices now? Has diesel prices gone down in a deregulated market?

17. How many nigerians will afford fuel import licences? Are we not tending towards an oligopoly where prices are fixed in conjuction with PPPRA at the billionaire’s playground?

18. If the oligopoly is formed, whats our exit strategy and clear blueprint to build greenfield refineries and restructure old ones? What’s the guarantee that there won’t be excuses in next  18-36 months on promised refineries, the power sector roadmap is lagging already!

19. If the palliative for high transport costs in Nigeria is 1100 0% interest buses, what’s the palliative for fuelling I better-pass-my-neighbour generator needed for a blissful rest? Does the rich use I better-pass-my-neighbour? So how does the poor not benefit from subsidy?

20. If we cut down the disposable income of the middle class through increased fuel cost, will it not have impact on the micro-enterprises of the poor that depend on it?

21. Without the will to put sanity into a subsidized or deregulated system, there will always be the incentive for corruption. Ask about how Russians created sudden oligarchs! The Human mind is mostly self seeking and looking for a loophole to game the system. That’s why banking regulations only last a while and as the industry seek pro-growth solutions, there’s always be  a leak to profiteer from. There has to be an impartial interest that protects communal interests against the selfish interest of the few; that in any clime is the role of the state.

Let government give cogent answers and  put this hurried deregulation discourse in an intellectual space. We earnestly want to be subsidy removal converts.

-BudgIT