Fuel Subsidy Removal or Price Change Regime? By Abubakar Abdullahi

It is a known fact that NNPC and CBN were basically cesspool of the last administration. According to former CBN Governor, $20bn was not remitted into the federation account. In the PWC report also, about $19bn was not accounted for.

This new government, upon resumption, was faced with depleted foreign reserve – as evident in the various gates; #DiezaniGate, #DasukiGate etc.

The challenge why we are facing this #PriceChangeRegime is because the CBN could no longer provide FX to independent marketers. Initially, the NNPC assumed this role, but it proved to lack the logistics to double as regulator and as major distributor of this product.

As a last resort, the government resolved that, hey Nigerians, it is meaningless lying to ourselves, we cannot provide FX to these independent marketers, henceforth, we are allowing them to source for dollar at the parallel market; which is between N300 to N320 and sell not more than N145/litre.

This is a systematic deregulation but not holistic. If it were holistic, the government would not peg the price at N145/litre – the market forces would determine how much it goes for.

The good thing about this price change regime is that, if Total, Texaco gets funding from their offshore companies, it is likely to be cheaper, so fuel at their stations would be sold far less than other competitors and the market forces will force this high prices to crash – similar to what we have in the communication sector.

Call it what you want; Fuel Subsidy Removal, Petroleum Sector Deregulation or Price Change Regime, I would rather have a trusted President to handle the excesses of fuel importation than have a determined President who is after the end  of Nigeria as a nation.

To buttress my point, Sure-P was to provide the palliative from partial Subsidy Removal during former President Goodluck Jonathan, did it achieve its aim?

Important to note, I was at the forefront of #OccupyNigeria not because of anything but for lack of leadership qualities of the previous administration – leadership of grand corruption.

I wouldn’t have supported a government that sold crude at $120bp but have saved nothing for the rainy days – to add subsidy income to her disposal. That is being reckless.

If you feel shortchanged, like Gimba Kakanda said, the right to protest has not been taken down in the constitution, so feel free to occupy.

With the million signatures the PDP gathered in the run up to the elections should not be a waste, and the time to use it is now. Mobilize and show the world you’re a stronger opposition.

Goodluck.

NB: the government has systematically devalued the Naira. And the idea of market forces has prevailed over Control Policy of the President as the currency takes a swipe.

Abubakar Kasimu Abdullahi.