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Fuel Subsidy Palliative: Poor Implementation Likely to Hamper Success – Analyst

By Obiabin Onukwugha, Yemi Olakitan, and Salifu Faridat

Professor Abiodun Adeniyi, a public analyst and lecturer in the Department of Mass Communication at Baze University, Abuja, has bemoaned challenges facing the implementation of government policies in Nigeria.

In an interview with NatureNews, he discussed the complexities of Nigerian society and the recurring issue of mistrust towards government initiatives.

Professor Adeniyi expressed appreciation for the noble intentions behind the federal government’s policies.

However, he cautioned that these initiatives could face obstacles similar to previous ones due to the intricate nature of Nigerian society.

“We are in a constant system where any policy direction will appear imperfect because of the complexities of our society. And if we want to retract from this policy now, and probably do something out, you still find out that there will still be imperfections and doubts around it,” Adeniyi remarked.

He pointed out that one significant factor contributing to the mistrust of Nigerians towards government policies is the failure of those responsible for executing them to do so with sincerity and dignity.

“And that has to do with our nature as people that have little or no faith in the system, as people who don’t think for the other person, who think only for themselves because we are essentially individualistic, selfish and self-aggrandizing,” he explained.

Adeniyi emphasized that the palliative initiatives may fail because of the prevailing individualistic mindset, which hinders communal cooperation and trust. He predicted that this attitudinal or character disposition could pose challenges to the current policy as well.

“Otherwise, to a very large extent, it should have gone a long way or some way in ameliorating the plights of the common people suffering because of the removal of oil subsidy,” Adeniyi concluded.

As Nigeria grapples with the complexities of policy implementation, Professor Abiodun Adeniyi’s insights shed light on the importance of addressing trust issues and fostering a more communal approach to governance for the benefit of the common people.

“Remember also that because of this attitudinal disposition, we are likely to have less trust in the government that is supposed to implement it because I’m not going to be surprised if some state governments even divert the funds and use only part of the funds for the purpose for which it was meant.

“So, these are genuine concerns but I’m sure there are some states that will want to be able and honourable and dignified by using the resources very well such that the people will actually benefit.

“In the meantime the only thing we expect is that governments at the sub national levels will be judicious in the way they use the resources hoping that they will not divert it and that they will be contentious about the application of the funds. That’s the only hope we can have”, he stated.

Whether the Palliatives can be enough for the people the Public Analyst said; “It can definitely not be enough. It goes back to what we have been talking about over the years, an exploding population over the background of limited resources. We don’t even know how many we are in this country and when you have a situation like that you often expect that resources might not even be enough.

“And that is what is also manifesting and materialising now, where five billion naira are released to the states in a situation where some states are much more than the other. Some states have more population than the other so how do you expect five billion to go round at the level of material resources. And that is what we are seeing in Rivers State and we are going to have similar examples as you cited, across the country. Where we are uncertain about our population and we are faced with declining resources.

“But again I think It’s step in the right direction that government is doing anything at all. It would have been worse if government did nothing. Do not forget that government has juggled and being steadfast to the solution to this subsidy removal. And so if we are concluding on this, we can say it’s good a measure has been taken at all.”

He continued: “But I think we are just compelled to make do with what we have hoping that going forward the market forces will actually bring down the price of PMS as such that it comes between the affordability rate of the common people. If refineries are back on stream, if Dangote refinery is back on stream and we have more supply of PMS, given the forces of demand and supply at play.

“This is the expectation we have, otherwise whatever is before us now is something I imagine that we just have to continue to pull through but in pulling through we are also bringing the argument that government committees, government agents, try to see to the implementation of it.”

Distribution of palliatives during perceived difficult times is not new to Nigeria and Nigerians. Palliative is described as a medicine or form of medical care that relieves symptoms without dealing with the cause of the condition.

During the Covid-19 era in 2021, the Federal Government of Nigeria under President Muhammadu Buhari rolled out several measures and directives on healthcare, border security, and fiscal and monetary policies in response to the pandemic.

One of such measures was the setting up an Economic Sustainability Committee chaired by then Vice President Osinbajo, to develop a comprehensive economic plan to respond to the disruptions and dislocations caused by the COVID-19 pandemic.

Buhari also set up the Nigeria Economic Sustainability Plan (NESP), developed by the Economic Sustainability Committee (ESC), also chaired by Osinbajo. The NESP developed as a 12-month, 2.3 Trillion Naira ‘Transit’ Plan between the Economic Recovery and Growth Plan (ERGP) and the successor plan to the ERGP.

The NESP, which was funded with 500 billion Naira from Special FGN Accounts was charged with the responsibility of upgrading health facilities nationwide, and also to finance a national Special Public Works Programme, as well as any other interventions that may be approved in the future.

The NESP was to also release 70,000 Metric Tonnes of Grain for distribution to poor and vulnerable households across the country, commence a three-month repayment moratorium for all TraderMoni, MarketMoni and FarmerMoni loans, and immediately commence a three-month moratorium for all Federal Government funded loans issued by the Bank of Industry, Bank of Agriculture and the Nigeria Export Import Bank.

Furthermore, to this, the federal government established a Joint Technical Task Team to facilitate the movement of food and agricultural inputs across Nigeria, and to expand the National Social Register (official database for implementation of the Conditional Cash Transfer programme) by 1 million additional households, implement a Modified version of National Home Grown School Feeding Programme (NHGSFP), and deliver dry food rations to households of pupils already benefiting from the NHGSFP, among others.

But there were allegations of misappropriation of funds and non-distribution of food items to the target masses.

Last week a group of persons broke into a warehouse in Bayelsa State where food items were stock-piled and carted away with the items.

Reacting, the Bayelsa State Government said they were expired covid-19 undistributed food items.

The case in Bayelsa state, is among many others across the country, where different agencies and state governments kept the food items back for political campaigns and dubious purposes.

The recent announcement of distribution of N5billion and N5billion respectively, and grains to the 36 states and the Federal Capital Territory (FCT), intended to cushion the hardships of masses due to the removal of fuel subsidy in May 29 by President Bola Ahmed Tinubu has therefore been received with kids gloves in some circles.

Most Nigerian households are unable to feed on the required three-square meal due to hardships caused by unemployment, food shortages, perennial flooding, hunger, and poverty arising from global climate change, and increasing prices of goods and services, especially food items.

As of 2022 when the fuel subsidy regime existed, two-thirds Nigerians were reported to be living below the poverty line of $2 per day.

According to the Global Hunger Index, Nigeria ranked 103rd out of the 121 countries with sufficient data to calculate 2022 GHI scores.

The report further indicates that with a score of 27.3, Nigeria has a level of hunger that is serious. This is even as Nigeria’s inflation rate stood at 22.79 percent as of June this year.

In Lagos State, checks by our correspondent revealed that the government is said to be distributing food items at subsidised rate.

A cross section of residents interviewed welcomed the development, noting that it has improved their plights.

Babatunde Raji, a Muslim cleric who spoke in an interview with NatureNews, said, Agege Local Government came to their neighborhood to distribute palliatives aimed at cushioning the effects of fuel subsidy removal in Nigeria.

According to him, food items such as yams, rice, Beans and Garri were shared among the residents although Raji said, the food items were not free, but they were highly subsidized and given to the residents of the Local Government at very cheap rates.

He said they were going from street to street. He thanked the Local Government Chairman and all the people that participated in the gestures.

“It’s really a good gesture because food items are expensive these days and we are glad that the government is thinking about various ways to support the people even at the grassroots levels.”

Speaking further, Raji said he was one of the individuals that distributed the food items. “The crowd was large, so we had to help out. They came in a big van and the food was distributed to all. They are going from street to street, and it is our turn now. They have promised to come to Oyinlola street next, by September 21st which is the next street to us, and we will be expecting them.”

When asked wether the people rejected the palliatives, he said no, that everyone was happy to receive the foodstuffs.

In another chat, Mrs Mariam Adeyemo, a widow and a mother of five, spoke with NatureNews. She said, the yams were big and well rounded.

In all, she paid N4,500 naira for the subsidized food items which she said is way lower to the market prices of foodstuffs, she lauded the government officials for coming with the rice, beans, Garri and yams.

“The foodstuffs I received could have been bought for N20,000 naira but the Local Government collected only N4,500 naira from us. We thank the Agege Local Government for this kind gesture. At first, we complained that it should have been distributed free of charge but when we saw the number of foodstuffs we were getting, we knew it was worth it,” she said.

Also, Mrs Funmilayo Adio, a single mother living with four children, described the food items as worthy.

According to her, there were so many crowds at the collection center, but they came with a big vehicle loaded with enough food items to go round and she was happy to have been able receive her portion which she brought home for her children.

Another resident, a retired police officer, Kehinde Badmus, said he missed the distribution but will ensure that he makes it to the collection center when next they come to Oyinlola street at Agege.

However, Badmus called on the Federal and State Governments to do more, saying, “the efforts of the local government was good but more is needed to cushion the effects of the subsidy removal in Nigeria. Many people are suffering and cannot afford even the basic needs. All we see with Nigerians is because Nigerians are resilient.”

In Abuja, the seat of Power residents expressed displeasure at the government fuel subsidy removal policy.

A resident, Alfa Baba Atiku, described the removal of subsidy as ill-timed. He said: “I feel like the subsidy removal by the President Asiwaju led administration is ill timed. Looking at the economic situation of the country. We just left a period of cash scarcity where we had to use our money to buy money. I think I don’t have to dwell much about that because we all experienced it and saw how life was at that point.

“Nigerians felt okay, this is a new government we should have some form of relief since there is a change of baton, however we are phased at this point with huge economic hardship, price of goods and services going up at a very high, Federal government owned tertiary institutions are increasing their fees even after the Federal stated categorically that tuition fees remain free in Nigeria.”

He queried the sharing formula and how the distribution will be executed by the various state governments.

“It is of trite knowledge that the Federal Government has a whole lot of wonderful welfare policies but then are these policies being implemented or executed. I am not an economic expert but at this point I can state categorically that the subsidy removal and the subsequent distribution of palliative by the Federal government of Nigeria defies common sense.

“Why would you remove subsidy prima facie to save cost knowing fully well it’s resultant effect would be unbearable hardship and then distribute billions of naira to State Governments as palliatives when you can lay out an economic plan which would reduce the economic hardship that hitherto existed before the coming of this new government and gradually remove the said subsidy”, he queried.

Also Jamil Idris said; “I feel it’s a ridiculous misplacement of priorities. It’s a short-term solution to a bigger problem to come. This country needs preventions, and the government is trying to manage a situation that they inflicted on us. The 33k given to corpers are not even enough for them, talk more of the Pennies they want to distribute now. That’s if the politicians don’t even usurp it before it gets to the poor masses. In all, it’s a very unwise thing to do.”

Furthermore, Mustapha Abdullahi expressed fears that the items may either be looted or distributed along political lines or with resentment. “The palliative thing may not really get to those that really deserve it or really need it. Some governors will not release it all. Some people may share it with sentiments probably along party line”, he noted.

In Rivers State, where the State governor, Sir Siminilayi Fubara announced that he received 16,800 bags of rice and N2billion, criticisms had greeted his decision to place the PDP chairman in the state, Ambassador Desmond Akawor in charge of the distribution Committee.

This is despite that the state government had earlier rolled out free buses conveying masses to different destinations in the state capital and environs.

A youth group, South South Youths Initiative, SSYI, Imeabe Oscarin reacting to the appointment of Akawor, as Chairman of the state Palliative Sharing Committee, said the decision amounted to politicizing of the process.

He said: ”The appointment of Desmond Akawor is not welcomed in the state because it will breach the principle of fair play.

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