By Dr. Tayo Douglas,Esq. Ph.D
“To whom much is given, much is expected goes the saying. If Dangote refinery cannot sell below N150 (One hundred and fifty naira) per litre or maximum N150, then the mess would have been made of the government’s intervention and/or sundry concessions. If antecedents and history have been of any meaning to an average Nigerian then we would appreciate why a bag of cement is still as costly as ever despite the concessions which Dangote had over the years enjoyed.”
Subsidy, according to the Oxford English Dictionary, means ‘a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low.’ In any civilised clime, subsidy is meant to keep some businesses alive, be it private or public, while at the same time, it is often deployed to bring relief to the people. It is a kind of intervention fund which the government of a particular state or country will, when necessary, deploy to ensure that goods and services are within the reach of its people or become affordable to the greatest number of its people.
In Nigeria and over the years, the magical word, subsidy, has in fact turned to be the veritable source of the ills plaguing the country and its people. As of recent, dearth of energy supply in Nigeria and in particular, the labefaction of fuel (PMS) supply, has brought into fore the usage of this word more than any other period in time. For some years and until recently, the Federal Government of Nigeria (FGN) claimed that it has always subsidised the importation of fuel into the country. Whether the statement is true or not, one can assert here and without equivocation, that there wasn’t anytime during the subsidy regime when fuel had been within the reach of the people. We have continued to source fuel through a deadly window called “Black Market” and at very outrageous prices.
Why would Nigeria have to import fuel when it has almost four refineries as well as the crude oil to refine ? Nobody has ever come up with answer to this question till date and hence; we are left at the mercy of whatever story or explanation given to us by our leaders. We have been in the midst of this cul de sac when some few years ago, Aliko Dangote came out to express his intention of setting up a mega oil refinery in the country.
People were happy because one of the reasons which our rulers and slave drivers have always given for the hike in cost of fuel is the sum paid on importation. They have coined a slang for this reason and that is, “landing cost.” If someone has therefore taken the bold step of setting up a refinery in the country, our belief was that succour and great relief to the masses have arrived. We were told that the FGN is interested in the success of this private business and hence would do everything possible to assist in its take off.
We have read about several concessions, ranging from tax exemption, duty free importation, NNPC investment in the business, preferential exchange rates and so on and so forth, which the government and its agencies have granted this promoter during the pendency of the project. Even at the conclusion of the project this year, 2024, the promoters or management of the refinery came up again to hold that lack of crude oil to purchase from NNPCL was stalling its promise to hit the town with several litres of refined products.
The claim of course became a sentimental issue and NNPCL was seen or perceived by the public as the cog in the wheel of progress. By express fiat, the government waded into the fray and we were told that crude oil would be sold to the refinery in our local currency. Now to provide an affordable fuel or even to flood the Nigerian market with abundant fuel by the refinery has till date become a big problem. Accusations and counter accusations have been the norm rather than the exception. Issue of blackmail here and there is what we have been witnessing daily. It has now become an offence to know how much Dangote refinery is prepared to sell its fuel per litre. We have thus continued to read about sundry prices which are very close or even more than those prices which the importers of fuel are selling when subsidy is believed to have been withdrawn by the government.
Sadly, an average Nigerian has never for a day sat down to reason or ask questions. Whatever he’s told is a “fact” which he must believe. Why has it been difficult for us to interrogate the reason behind the sundry concessions which the government has so far made available to Dangote refinery ? Is it not to make the fuel available and affordable by the masses ? Why would Dangote want to sell at almost the same price or even more than those of the importers despite series of interventions and concessions the FGN has made available to the refinery ? More annoyingly sad is the statement credited to the refinery management as of recent. They have told us that the price of fuel per litre would be left to “market forces” to determine. What statement could be more fraudulent and/or criminal in nature than this statement? How can the “market forces” determine the price to sell a commodity which production cost and profit margin can be ascertained by strict arithmetic calculations ? What is the job of the country’s price control agency ?
To further underscore the fact that these people are up to a game, they have again told us that the price of fuel would be high for now because they will have to first sell the fuel refined from the imported crude oil before coming to the local crude oil they have bought from the NNPCL. In essence, what this statement portray is that all along, they have fuel available while they were telling us they have got no crude oil to refine.
Unless the government is prepared to be more proactive in its decision, it would be difficult to see the light at the end of the proverbial dark tunnel. Initially we have been told that some number of litres would be made available to NNPCL by the refinery and what has come upon this arrangement?
To whom much is given, much is expected goes the saying. If Dangote refinery cannot sell below N150 (One hundred and fifty naira) per litre or maximum N150, then the mess would have been made of the government’s intervention and/or sundry concessions. If antecedents and history have been of any meaning to an average Nigerian then we would appreciate why a bag of cement is still as costly as ever despite the concessions which Dangote had over the years enjoyed.
Government should as a matter of urgency come out boldly and loudly too to fix a price affordable to an average Nigerian regardless of whose ox is gored or might be gored. The era of a man enjoying every monopoly of this world should by now be consigned to the dustbin of history. Dangote refinery for instance, has the whole of West Africa countries and some other parts of the continent to tend and service with its products. It would no doubt make its money by so doing. Nigerians must not be made to pay for any businessman’s obsession. We have been told that the Nigerian nouveau riche deserve to enjoy their wealth and we have outrightly agreed with them without any qualms. In the same measure or manner and in pursuance of all that is equitable, these nouveau riche should also remember that the poor masses too deserve to breath and live a purposeful life.
*Dr. Tayo Douglas,Esq.; LL.B (Hons) BL; LL.M; Ph.D*
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