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Thursday, October 07 2004

Vol 17 No.30

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  • New Page 2

    Fuel price increase: The home truths

    jenny yisa

    ONE thing is apparent in the country today: Nigerians’ penchant for viewing activities of the government with suspicion. Recently, the judgement that outlawed the Nigeria Labour Congress (NLC) by the Federal Court of Appeal is interpreted as a grand design by the government to provide a durable answer to the Labour question. Coming on the heels of this is the recent increase in the prices of petroleum products. It will be difficult to explain that the simultaneity was a mere coincidence. To Nigerians, the court judgement was orchestrated to allow the government increase prices without challenges. But to any person who cares to know and understand, the increase is in response to global trends as it relates to the burgeoning prices of crude oil in international market.

    In most articles on the above subject, expectedly Mr. President, Chief Olusegun Obasanjo, is presented as an ogre who enjoys seeing those he governs go through suffering sand hardship through the unrestrained increases in prices of petroleum products. Those who, ab initio, have been against his government see this as an opportunity to incite the masses of Nigeria against him in the hope that his government will be brought down. But more than being propelled by mischief, the increase calls for mature appraisal.

    Most analysts rest their argument on the reason that the problems in the fuel sector were solely caused by the government. The submission has always been; if not for the importation, the prices of petroleum would have been within the affordability of Nigerians. Others believe that fixing the refineries or building new ones do not receive government attention because some powerful men in government actually make a lot of money through fuel import which they do themselves or through their cronies. The other day, there was the issue of vessels arrested for bunkering. If a proper investigation is done, we shall discover that those behind that are either agents or friends of some scrupulous men in power.

    In cases such as this, argument do not help so much, especially when one argues based on hearsay and when he has not taken time to understand the concourse of circumstances surrounding any nagging issue being discussed. What helps is honest appraisal and disposition to offer one’s genuine suggestions on the way forward. This, I image, should be the preoccupation of patriots, those who genuinely are interested in the country moving on. To see the solution in strikes and rioting is to demand the taming of anarchic impulse.

    In truth, among the campaign’s promises of Chief Olusegun Obasanjo in 1999 was that the man (himself) who built the refineries should be voted back for him, once again, to fix those refineries back. But Obasanjo in his 6th year as the President has not quite succeeded. Flowing from this, some Nigerians who criticise him are morally justified. Obasanjo should wholly accept that he has failed in this regard. What I expect him to do is to explain to Nigerians, through his aides, the reasons for this apparent failure. Even Hercules, while alive, was not able to bring all his words to fulfilment. The current increase which is being vehemently opposed is another opportunity for government through its agencies such as National Orientation Agency (NOA) to engage in massive orientation of the masses to the real issues in petroleum industry.

    Obasanjo made most of the promises he made during electioneering campaign in 1999, because as an outsider in government then, he was not completely in touch with the dynamics of the government. There were some entrenched problems he saw like any other Nigerian, and thought that those problems would be solved by the wielding of the presidential fiat. Take the issue of refineries, he probably thought that bringing out money would solve their problems and, pron- to, the refineries would be repaired. The reality is that the refineries are old and repairing them when their technology is almost phased out is not as simple as anyone thinks.

    A clear case of the foregoing was the petroleum issue. Sooner than he became the president, he noticed that the problems in the petroleum sector were caused by so many years of planlessness and ineffective leadership in that sector. That was one of the reasons why he quickly brought the control of the Petroleum Ministry under himself. This is a demonstration that he is as concerned as the man next door. Since his administration, the issue of fuel has unarguably occupied most of his time.

    Knowing the views of average Nigerians about government corporations and knowing the rot attendant with the management of these corporations, he intensified the nation’s efforts to privatize. Just recently, Daily Times was privatised and bought by Folio Communications Ltd. Wait and see what will happen in few years time, the new buyers will resuscitate the place and put it on its feet again. Even if the same management handling it now were contracted to do so while still in the hands of government, they, like its predecessors, may not achieve much.

    It is against the above background and understanding of Nigerian’s psyche that Obasanjo has refused to go into the building of refineries, hence the issue of deregulation: The empowering of the private sector to take over the business of supply of fuel to Nigerians. Since this policy began, the persistent scarcity of the product has stopped. It is unfortunate that prices were recently increased because of the prevailing international pricing of the products, which, due to dysfunctional refineries, are imported into the country. Because of this, Nigerians are demanding for the appraisal of deregulation. They are right, self-survival says that one is attracted to that, or state affairs that make life tolerable for him. But to give in to this clamour is to demonstrate the fact that the sun or moon should be plucked down because some people worship them. If you do, what of other benefits derivable from the sun as the main component of photosynthesis?

    The temporarily hike in the prices of petroleum is not enough to make Nigerians lose sight of the numerous benefits we have started enjoying from the programme. What this teaches is that reforms demand a great deal of patience and understanding. Certainly, you have to work in other to enjoy the fruits of your labour. In the midst of all these, let us be comforted that the increase is just a passing phase. Surely, when prices of crude oil stabilizes in international market domestic prices will also come down. To demand that prices be forced down immediately is to scare marketers out of business, this, ipso facto, will be an invitation to scarcity, long queues, and man-hour being lost to fuel and its headaches.

    •Yisa lives in Doko, Niger State.

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