The following is a guest submission by Innocent Okoro

When the Federal Government announced the removal of fuel subsidy in january 2, it was said that the subsidy on kerosene would remain because kerosene was vital for the daily ‘survival of the people’. The fuel subsidy removal was greeted by mass protests from Nigerians, even serving as a political point for the opposition, because, the people were not properly made to understand the negative effects of subsidy and the need for its removal in order to bring about a better socio-economic outlook in the country. Marred by massive corruption and improper implementation, the fuel subsidy program was simply a waste of tax payers’ money.

Maintaining a litany of subsidies is a very wrong government policy leading to increased taxation and a high debt since the government would continue seeking money to maintain these subsidies, to offset these debts, the government would have to further increase the already high tax, and most times, allocations that should be used in carrying out developmental projects would be spent in servicing debts that always come with high interests. Allowing a free market without government subsidies and interference, however, would bring about efficient and effective service delivery, and competition for customers between firms would drive down the cost of these products to the lowest possible price in addition to a high quality of service.

Every interested Nigerian would have seen that the kerosene subsidy is a hoax. According to the government’s kerosene subsidy program, kerosene, which is sold for over N100 per liter, would be reduced to N50 per liter with intervention funds from the Federal Government, as a result, the government spends billions of dollars annually to maintain kerosene subsidy. However, kerosene is not sold at the government’s fixed price of N50 per liter, it is bought for over N100 per liter. NNPC mega stations sometimes sell at the supposed price of N50 per liter but they seldom have kerosene to dispense and when they do, people queue up for days just to buy a few liters of kerosene, and most times go home disappointed, since strong and interested parties would have bought the available kerosene, with extra tips, for re sell at the market price of over N100. The hypocrisy even gets deeper, just like adding salt to injury, the displays at various gas stations show that the price for kerosene is N50 yet it is sold for over N100 at the same station. Something is wrong somewhere.

Why should the deception of kerosene subsidy be allowed to continue? Why should billions be spent to service a lie? In the first place, subsidizing kerosene, or any product for that matter, is not a sound economic policy, worst still, deceiving hundreds of millions of people in the name of subsidy is an insult to the average Nigerian. Instead of ameliorating the plight of the masses, the kerosene subsidy has further impoverished them; they do not receive these subsidies, have to pay a higher tax, and have less projects available to them.

In our familiar culture of neglect and nonchalance towards serious issues, and pre-occupation with trivial issues such as the ethnicity and region of the President, we forgot to ask a very necessary question: Where do these subsidies (amounting to billions annually) go to? A rather rhetoric question since all Nigerians know where monies like these go to – the few guys at the top who are in the habit of plundering our destiny and future, albeit under our noses.

Even as the Nigerian political environment continues overheating, we must factor in the question of kerosene subsidies, ask for their removal and channeling into more needed areas of development, and demand the prosecution of the architects and beneficiaries of this scam. When that happens, Nigeria will be better for it.