Title Page
Strategies for taking the benefit of oil subsidy to the
highest number of Nigerians
By
Ayogu Gideon Okechuk...
INTRODUCTION
The beginning of wisdom is a definition of terms –Socrates
The expressed intention of the administration of...
THE SUBSIDY MUST GO
But after observation and analysis, when you find that anything agrees with reason and
is conducive ...
BENEFITS OF REMOVING THE FUEL SUBSIDY
Change always comes bearing gifts - Price Pritchett
Nigerians stand to gain a lot ...
THE WAY FORWARD
Success is simple. Do what's right, the right way, at the right time – Arnold Glasgow
The harsh effects ...
3. The above point is reliant on the availability of adequate data. Hence, it is
imperative to establish a national regis...
Bibliography
Agbedo, O. (2011, October 22). How fuel subsidy removal will affect your finances. The
Guardian, p. 46.
Ik...
National Youth Essay Competition entry
of 8

National Youth Essay Competition entry

Published on: Mar 3, 2016
Source: www.slideshare.net


Transcripts - National Youth Essay Competition entry

  • 1. Title Page Strategies for taking the benefit of oil subsidy to the highest number of Nigerians By Ayogu Gideon Okechukwu
  • 2. INTRODUCTION The beginning of wisdom is a definition of terms –Socrates The expressed intention of the administration of President Goodluck Jonathan to remove the existing subsidy on petroleum products has been one of the most discussed issues in the Nigerian socio-political landscape ever since the idea was mooted in October. Before we venture any further, it is instructive to fully understand the subject of this essay. In the view of Todaro and Smith (2009), a subsidy is an assistance paid by the government to a business or economic sector to prevent an increase in the prices of its products while Agbedo (2011, p.46) opines that: “Petroleum subsidy means that a fraction of the price that consumers are supposed to pay to enjoy the use of petroleum products is paid by government so as to ease the price burden.”
  • 3. THE SUBSIDY MUST GO But after observation and analysis, when you find that anything agrees with reason and is conducive to the good and benefit of one and all, then accept it and live up to it - Prince Gautama Siddhartha For the benefits of oil subsidy to get to the highest number of Nigerians, the subsidy has to go. Only a few well-placed Nigerians benefit from the subsidy as seen in the recent revelation by the Senate, which released the names of the beneficiaries of fuel subsidy amounting to a grand total of N3.655 trillion from 2006 to 2011. The princely sums that have been allocated to the subsidy over the years could have been better spent in the execution of capital projects and development of critical infrastructure that would have hastened Nigeria’s march to Vision 20:2020. While opposition to the removal of the subsidy has been centred on the view that the move would impoverish millions of Nigerians, it is worth stating here that, with efficient and conscientious redeployment of the accruing wealth from the removal of the subsidy, those concerns would be taken care of.
  • 4. BENEFITS OF REMOVING THE FUEL SUBSIDY Change always comes bearing gifts - Price Pritchett Nigerians stand to gain a lot from the removal of the fuel subsidy or the deregulation of the downstream sector of the petroleum industry, as it is otherwise known. Monye (cited in Ikokwu, 2011) argues that the removal would benefit Nigerians because people will import petrol and sell at market prices, there will be competition and supply and the refineries will work again. Ugwuanyi (2011, p. 15) also captures the benefits that would accrue with the removal of the subsidy by stating that “with deregulation, private refineries will spring up in different parts of the country. The situation would not only create employment but the price of petroleum products would fall.” At this juncture, however, the focus of this essay would shift to the locus of this discourse which bothers on the strategies that would ensure that the greatest number of Nigerians benefit from the removal of the subsidy.
  • 5. THE WAY FORWARD Success is simple. Do what's right, the right way, at the right time – Arnold Glasgow The harsh effects of the proposed removal of fuel subsidy would be felt more keenly by the Nigerian masses. In acknowledgment of that point of view, the researcher sampled the pulse of the average Nigerian through a survey. The survey was structured as a random sampling exercise due to the large population involved and it targeted at artisans, students and traders, among others. These groups of people were exposed to short interviews. Based on the analyses of the responses gathered and other personal inferences and observations of this researcher, the following practical suggestions, it is believed, would help take the benefits of oil subsidy to the greatest number of Nigerians: 1. A management team comprising credible Nigerians with representations from the media, the government, trade unions, the corporate sector and other stakeholders in the Nigerian polity should be set up to handle the funds accruing from the removal of the subsidy and to supervise the subsequent process involved in the redeployment of the funds to cushion the effects of the removal. 2. Part of the funds that would be freed up should be set aside for the provision of a social security scheme for indigent Nigerians. This would grant the average Nigerian access to free social and health services.
  • 6. 3. The above point is reliant on the availability of adequate data. Hence, it is imperative to establish a national register in which the personal details and particulars of potential beneficiaries of the social security scheme would be captured. 4. The government should invest some of the accruing wealth in the reduction of personal income taxes, Value Added Tax (VAT) and other tax rates borne by the masses. 5. Since the removal of fuel subsidy is likely to cause a hike in the prices of food items, the government should revamp the agricultural sector and make it grow more food. This can be done by providing local farmers with loans, mechanized tools, subsidized crop seedlings and fertilizers and other incentives that would encourage greater output. 6. A nation-wide drive to eradicate illiteracy should be pursued which would ensure that every Nigerian child receives free education up to secondary level. This programme would be coordinated by the Federal and State Ministries of Education in partnership with interested corporate and international bodies. In conclusion, it must be said that transparency, probity, accountability and a sense of dedication to the cause are necessary to the achievement of these strategies. This would ensure that the greatest number of Nigerians benefit and would aid in actualizing the transformational agenda of the administration of President Goodluck Jonathan.
  • 7. Bibliography Agbedo, O. (2011, October 22). How fuel subsidy removal will affect your finances. The Guardian, p. 46. Ikokwu, C. (2011, October 27). Monye: How fuel subsidy removal will benefit Nigerians. ThisDay, p.23. Todaro, M. P., &Smith, S. C. (2009). Economic development (10th Ed.). Addison Wesley. Ugwuanyi, E. (2011, November 1). Fuel subsidies gulp N3.566t in six years. The Nation, p. 15.

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