By Hon. (Comr) Salahudeen A Lukman
On Thursday, August 17, 2023, the Federal Government of Nigeria announced a N5 billion palliative for each state of the federation and the Federal Capital Territory. This, it was disclosed, was another effort to cushion the impact of the removal of the petrol subsidy.
The governor of Borno State, Babagana Zulum, made the announcement in Abuja while speaking to State House correspondents at the end of the National Economic Council meeting, presided over by Vice President Kashim Shettima.
This, I opine, is another wasteful and unrealistic economic recovery plan. And if thoughtless plans like this very one are not put in shealth, Nigeria is up for another litany of wasteful government.
Again, this one of the plans we get that leave Nigerians in awe as to the capabilities of the country’s pilots. How do I mean? My countrymen had – still have – high expectations from a president who is said to be a financial expert and once an accountant with a multinational company, as well as a vice president who is reportedly a seasoned banker; both served two-term Governor of two different states in two different geopolitical zone. In addition, both were senators of the Federation before assuming Presidency. One would then wonder how the combination of the duo can come up with such an idea of what to use to cushion fuel subsidy removal effects. If professional experience didn’t guide what of political experience?
One, Nigeria’s spending on its controversial fuel subsidy regime has gobbled up about N21.7 trillion in the last 18 and a half years, a THISDAY computation of data from the Nigeria Extractive Industries Transparency Initiative (NEITI) and an independent review of figures between 2005 and the first half of 2023 has shown.
N5 billion in 37 places is to 187 Billion. Where is the rest?
Remember the helmsman of this administration said Nigeria has saved over 1 trillion naira ($1.32 billion) in just over two months by scrapping a popular but costly subsidy on petrol and moved to unify its multiple exchange rates, almost a month ago.
Secondly, the money is unsafe in state governors hands. One is being reported to have used personal account to receive it. Like Kwara, the governor, through his Chief Press Secretary Rafiu Ajakaye, is saying “Each state is to receive N4bn to purchase bags of rice in the current market value and distribute same to citizens in the state, with the most vulnerable persons as the first priority…..each state is to also receive N1bn worth of maize from the strategic national reserve through the Central Bank of Nigeria. This is not in form of cash; it is maize. As of Friday August 18, 2023, the Kwara State Government has received N2bn of the N4bn. It awaits the balance. The state also awaits the maize from the CBN. It is important to mention that 48% (N1, 920,000,000.00) of the N4bn is a noninterest loan that will be paid back over a period of 20 months at N120, 000,000.00 monthly. This deduction begins in November.”
Note that the first statement was in contrary to what Governor Zulum said,” “In addition to the fund (N5bn), Zulum said the Federal Government also released five trucks of rice each to the 36 state governors.” Even, Ondo state only confirmed that it has received only 3000 bags of rice, not 18,000.
I feel, except the 5BN will be available to state governors on monthly basis for continous sharing, if not the move remains a very dull and wasteful adventure or probably another condit pipe to channel money to private pockets as citizens won’t benefit therein.
Federal Government must think outside the box. Nigerians have being remaining calm and peaceful even though none is happy with the current state of frustration, hunger and hopelessness. They all still trust in “Renewed Hope” and confidence in the personality cum competency of Asiwaju Bola Ahmed Tinubu GCFR held them on.
Imagine the shock that such among of money has been disbursed to state governments for sharing to “the downtrodden.” A long term and impactful interventions are what Nigerians expect, not another opportunity to siphon money for people in power. Perhaps the subsidy payment that was stoped which adjudged only beneficial to very few cabals in oil sector is only stop to be rechannel to political cabals in form of palliative.
Building more refinaries including modular ones in every Niger delta states, procurements of CNG gas engine mass transit buses for immediate distribution, urgent rehabilitation work on federal roads of economic importance to ease transportation of goods and services and revival of railway transportation for cargo service among other impactful ones would have been a better idea.
Alternative energy, wind turbine, biogas power plant and solar power can also be aggressively developed with these funds to aid citizens’ economic survival and national recovery.
The idea of sharing money, which was thought to have ended with immediate past administration of former President Muhammadu Buhari is rearing up its ugly head again.
Some forgive Buhari and his administration because he is a soldier. Even his infamous SSCE certificate is being doubted. He has no record of professional work experience in any economic sector other than war front as a soldier.
It would be very disappointing if this sharing of monies continue with impunity for it means Nigerians are in for another reign of wasteful litany with zero impact.
Except the Bola Ahmed Tinubu-led government rethink, retract and restrategise, Renewed Hope may be a “scam”.
May God save Nigeria.