A thousand and one lies indeed start appearing to be true, unless tackled. Been watching the Channels debates lately as the subsidy protests take over the nation, and here are the delicate under bellies of the government's half truths:
1. Deregulation is good in telecoms, Banking etc. It will be good in Petroleum Too – By NESG Chairman, Fred Nweke (Former Information Minister) & Others
Response: Well, not exactly. Deregulating the marketing of petroleum (which is usually money losing) and not the upstream production (where the easy money is) is analogous to government owning MTN and Globacom, but privatizing sale of recharge cards! Our right to subsidized petroleum is a derivative of government’s insistence on managing that asset directly in trust for the people: who demand it cheaply. Moreover, in developed countries (like the US) where the price at the pump is deregulated, if you find oil in your backyard you also own it. In these countries as well, important resources like food are subsidized. What has the Nigerian government done for you lately?
2. Subsidy breeds corruption and the cabal benefits – By Governor Sanusi
Response: This argument is basically saying the government cannot deal with corruption or is not willing to confront their buddies that are the “cabal”. Was Femi Otedola (the Diesel Prince) not the biggest sponsor of the President’s ambition in 2011? What happened to prosecution, forensic accounting, investigations, trial of these cabal for anti-market tactics, fraud, forgery, tax evasion and perhaps treason? Guess the President does not take his Chief Security Officer role very seriously!
3. Oil is lower in surrounding markets and if lower in Nigeria it will lead to leakage – Minister Okonjo-Iweala
Response: This argument is preposterous. If this were true, then refined oil prices will be the same around the world except for islands! Think about it, every nation have a border and oil prices vary widely across them because those borders are monitored for smuggling. If the government cannot do its job, with simple technology, why should the people pay? Moreover with 75% spent on overhead, we still cannot find people to guard that border to avoid seepage? Moreover, these surrounding countries don’t produce oil. Cameroon that produces mere 85,000 barrels per day, subsidizes petroleum with up to $100 million per year.
4. Only the Middle & Upper Class benefit– Governor Sanusi & Minister Okonjo-Iweala
Response: This argument is bogus. The price of energy affects everything in every economy and more so in Nigeria. In the US, for every 15 naira rise in energy price at the pump, the GDP is reduced by 0.5%. In Nigeria it will be worse since we are not just poorer (by many thousands) but also depend on it not just for transport but power and cooking because our government is inept! The price of everything, on everybody is going up.
5. We are borrowing money to pay subsidy – President Jonathan & Mrs. Okonjo-Iweala
Response: This is a big fat lie. The NNPC pays money for the current subsidies from sale of crude oil directly to PPRA before the balance is deposited in the Federation Account. Albeit illegal, this is what the Senate found out. How then can it be said to be borrowed? If Nigeria is borrowing, it is only because our political class of less than 10,000 people arrogates 30% percent of the budget for itself, allocates 45% for its work force (of about 350,000) and asks the rest of us (149.5 million) to make do with 25% of the budget which never gets to us!
6. The money saved by subsidy will be spent on job creation and infrastructure – President & Ministers
Response: Again, the previous point they make is the answer to this. Where will this be saved if the money is borrowed? See, we received the 2012 budget and they did not indicate any subhead as SURE Projects or whatever that is called. Fact is the SURE Initiative was an afterthought. Evidence is slowly emerging that document was put together hurriedly by his spin doctors, in the last few weeks to the end of the year before GEJ sprung us a surprise of the year. By the way, how can a government with 4.3 trillion and no evidence of good spending convince 1.3 trillion will make a difference? Or a government that cannot even organize a medal ceremony be trusted with huge infrastructure projects? The best way to restore the economy is to increase the buying powers of the people not reduce it by 1.3 trillion naira that will go into foreign accounts! Tax cuts not increases!
7. 25% cut in salaries of political officers is sharing the pain- President Goodluck Jonathan
Response: For one, let us be clear here: basic salaries amounts to nothing to political officers. They make more from security votes and allowances than anything else. They get enough freebies from us including free fuel and house helps; they basically dash away their salaries. Also, the President has no such powers to reduce salaries of political officers. They are set by the Revenue Mobilization and Fiscal Commission (RMAFC) which sends it to the National Assembly for approval. The President also did not reflect this reduction in his budget. Nice!
8. The protests are sponsored and being used to discredit the government – Reuben Abati & the Statehouse Press Folks
Response: No, it is the policy that is sponsored: by World Bank and IMF types. The protesters need no sponsors like the President and his cabinet does; we have our minds. Being an opposition politician does not disqualify anyone from voicing their opinion against arrant policies especially popularly unpopular ones (emphasis mine). What is the point of being in opposition anyway?