2 months ago
10 ARTICLE AD
The removal of fuel subsidy in Nigeria has triggered an avalanche of economic hardships for the average Nigerian. The decision, which was aimed at promoting efficiency and deregulating the sector, has instead exacerbated the cost of living and burdened Nigerians with unbearable fuel prices. Millions of citizens are struggling to cope with the skyrocketing cost of goods and services, which are directly linked to the high price of petrol. Just when the hope of relief seemed near with the commencement of operations at the long-awaited Dangote refinery, Nigerians were left in shock as it became clear that the government, through the Nigerian National Petroleum Company Limited, would continue to control fuel prices.
This development raises several critical questions. Why did the government remove the subsidy with promises that market forces would determine fuel prices, only to have NNPC Ltd retain control over the pricing structure? Nigerians were led to believe that competition and market dynamics would drive down the cost of fuel once local refineries like Dangote came on board. Yet, at the cusp of the Dangote refinery operation, fuel prices are still rising. This inconsistency has deepened public distrust, and Nigerians are beginning to question whether their government truly has their welfare at heart.
When Dangote announced that the NNPC Ltd/government would be responsible for determining the price of fuel sold from its refinery, it came as a rude awakening to a population already strained by economic difficulties. What happened to the principle of market forces determining prices, as previously posited by the government? Was this promise merely rhetoric to justify the removal of the subsidy, or was there a hidden agenda? This has fuelled widespread disillusionment and scepticism.
The current situation has become untenable for the majority of Nigerians. Prices of essential commodities continue to surge, transportation costs have skyrocketed, and businesses are grappling with operational challenges. Life for the average Nigerian is becoming excruciatingly difficult. The removal of fuel subsidy without a commensurate plan to ease the burden on the citizens has been nothing short of a disaster.
Many Nigerians are also growing suspicious of what seem to be questionable dealings within the oil and gas sector. The mention of oil blocs, multinational oil companies, and conspiracies has raised eyebrows. These are complex webs of corporate and government interests that seem to operate in ways that are not fully transparent to the public. Whose interest is the government really protecting in the oil and gas sector? Is it the interest of the ordinary Nigerian or a select group of elites and corporate entities with vested interests?
The dual role of NNPC Ltd as both a regulator and a key player in the oil and gas industry further complicates matters. It raises a fundamental question: how can a player in the industry be expected to regulate that same sector impartially? The inherent conflict of interest casts doubt on the credibility of the institution and its ability to act in the best interest of the people. In developed economies, the separation of powers and duties is a standard practice to ensure transparency and fairness. Nigeria must adopt similar global best practices if it seeks to regain the trust of its citizens.
It is time the government came clean about these questionable dealings. Nigerians deserve to know the truth about what is happening in the oil and gas sector. The government must be transparent in its dealings and prioritise the welfare and well-being of its citizens above corporate profits or political interests.
The hardships faced by Nigerians today are undeniable, and they can be traced to mismanagement, lack of transparency, and poor economic policies. The government must act decisively and in good faith. Nigerians are calling for transparency in the oil and gas sector and the broader economy. It is time for the government to embrace global best practices in economic management, particularly in the oil and gas industry, where so much of Nigeria’s fate is tied.
The stakes are too high, and the suffering of Nigerians is too great for the government to continue on its current path. If it truly has the interest of the people at heart, it must act swiftly and decisively to address these concerns and provide the relief that Nigerians so desperately need. If not, the economic hardship will continue to worsen, and the trust between the government and its people will erode beyond repair.
Adebanji Dada works at Greenbridge Partners, Abuja
