N'ihi gịnị ka subsidi mmanụ dị mkpa, oleekwa atụmatụ gị maka ya?

President Bola Tinubu, at his inauguration on May 29, 2023, announced the abolishment of the subsidy on PMS, popularly known as fuel. Ever since, it has been a bragging right of Tinubu and officials of his administration. I had in my statement reviewing the one year of the Bola Tinubu administration urged the government to come clean on the actual position of the subsidy policy. These were my exact words: "...provide clarity on the fuel subsidy regime, including the fiscal commitments and benefits from the fuel subsidy reform and the impact of this on the Federation Accounts. It is curious that since April 2024, fuel queues have mounted at many filling stations across Nigeria, and the infamous ‘black market’ has sprouted in several states. How much PMS is being imported and distributed, and at what cost? What is the implicit subsidy?" If the subsidy regime had been characterised by opaqueness, what would we say of a situation where the subsidy is still being paid under the cover without Nigerians in the know?

President Bola Tinubu, at his inauguration on May 29, 2023, announced the abolishment of the subsidy on PMS, popularly known as fuel. Ever since, it has been a bragging right of Tinubu and officials of his administration. I had in my statement reviewing the one year of the Bola Tinubu administration urged the government to come clean on the actual position of the subsidy policy. These were my exact words: "...provide clarity on the fuel subsidy regime, including the fiscal commitments and benefits from the fuel subsidy reform and the impact of this on the Federation Accounts. It is curious that since April 2024, fuel queues have mounted at many filling stations across Nigeria, and the infamous ‘black market’ has sprouted in several states. How much PMS is being imported and distributed, and at what cost? What is the implicit subsidy?" If the subsidy regime had been characterised by opaqueness, what would we say of a situation where the subsidy is still being paid under the cover without Nigerians in the know?

The Nigerian worker, the teacher, the nurse, the factory hand, the civil servant, the artisan, has been the primary victim of an administration that, by all observable evidence, is far more interested in increasing the revenue at its disposal than in improving the lives of the citizens it governs. Trillions Saved, But Nothing Felt. The fuel subsidy removal was a necessary step, recklessly executed. Let me be clear: the removal of the fuel subsidy was, in principle, a policy that many, including myself, had long advocated. The subsidy had become a fiscal haemorrhage that enriched cabal middlemen while denying the government of the resources needed for development. Its removal was necessary and overdue. But the manner in which the Tinubu administration executed this policy was irresponsible and callous. On the day of inauguration, with no preparation, no safety nets, no cushioning mechanisms, and no transition plan for ordinary Nigerians, the President announced the end of the subsidy. The price of fuel skyrocketed. Transportation costs doubled and tripled overnight. The cost of food and basic goods hit the roof. The Nigerian worker, who was already struggling to survive on a salary eroded by years of inflation, was suddenly confronted with a cost of living that made mere survival feel like a luxury.

The Presidency turned it into a campaign of fear. “A refinery that has invested billions of dollars cannot be commanded to sell indefinitely below cost and absorb the losses. That would be reckless, economically destructive and unfair to any private investor. “But that is precisely why our proposal is different. “We are restoring subsidy through a production subsidy model, not an import subsidy model. “The difference is simple enough for every Nigerian to understand. Import subsidy spends public money supporting petrol refined abroad and brought into Nigeria. Production subsidy supports crude refined here in Nigeria so that Nigerian refineries can produce fuel more cheaply and Nigerians can pay less. “Think of it like rice.

My dear Francis, thank you for taking the time to truly understand what I am proposing. That means a great deal to me. I am not restoring subsidy so that Nigeria can keep paying for imported petrol. I am restoring subsidy so that Nigerians can produce more at home, pay less for fuel, and keep more money in their pockets. That is the difference between import subsidy and production subsidy. Think about shoes. If government wants Nigerians to buy shoes more cheaply, it can spend public money making imported shoes cheaper, or it can support shoemakers in Aba to reduce their production costs so they can make more shoes here, employ more Nigerians and sell at more affordable prices. I choose the Aba shoemaker. I will do the same with fuel. We will support crude refined in Nigeria so our refineries can produce at a lower cost and you can pay less. But for me, this is bigger than fuel. I want the bus fare you pay every morning to come down. I want the cost of taking food from the farm to the market to come down. I want the trader to spend less. I want the barber, tailor, welder and small business owner to spend less on energy.

I have not held different positions on whether subsidy should go. I said removing the old fuel subsidy was, in principle, necessary and overdue, since it was a fiscal haemorrhage that enriched middlemen. What I called wrong was how Tinubu executed it, with no safety nets or transition plan, and that is separate from my current proposal, which is a production subsidy, not an import subsidy.