Two things among others that will be of utmost significance primarily in freeing up resources for the new administration in commencing the arduous task of repositioning the country for a kind of socioeconomic renaissance at least for a start in the infant life of the current administration are the removal of fuel subsidy and the implementation of the Oronsaye Report. Thankfully, the former has just materialized.
Both thorny subjects have occupied the attention of the past administrations with committee set up, raising considerable hope in the attempt to plug waste but all soon ended in damp squib.
The path to the definitive removal of fuel subsidy wasn’t straightforward. Recall when the apostles of fuel subsidy removal were only a handful- they were lone voices in the wilderness preaching the message of disentanglement from a contrivance that is bound to hobble the progress of the nation. For their foresight they got flogged. Many won’t just listen to them- they plugged their ears against what they deemed as irritant others hauled stones at them.
The Goodluck administration attempt at pulling the plug on the scheme became a lightning rod for elite condemnation. The protest which was a parade of illustrious citizens forced the administration to cringe. It effectively became a ladder for political ascendancy. Those who took over power from a browbeaten Jonathan administration with a cornucopia of lofty promises became closet convert to the idea. So, ashamed and scared to own up to their new status.
The socioeconomic turbulence impressed on them the necessity for an emergency- they still thought little of ditching the costly and restrictive programme. They dragged on with costly loans to save face even when the unsustainability of the programme have mustered growing number of apostles. They dithered until a convenient and auspicious period- their time was up and were in no good shape to shoulder the concomitant burden of ending the programme. So, they passed the buck to a successor. It was a sort of a trap in my considered view.
Clearly, the socioeconomic prognosis is bad enough to consider tough decisions. The reverberation of the action across our borders since the withdrawal of the programme speaks volume of the unintended beneficiaries as a result of the abuse and the corruption involved.
The shenanigans that underpinned the programme which are well documented provided a source of filthy wealth to a handful of dodgy citizens.
In the eight years of the Buhari administration subsidy payment gulped about 11.4 trillion naira. They were periods of missed opportunities in light of the huge amount of resources that would have been invaluable were they to be channeled to critical sectors of the economy.
It’s a crying shame that knowing full well the extent of the heist perpetrated under the banner of fuel subsidy nothing forceful was done in going against the few that worked against the interest of millions of fellow citizens.
It remains to be seen how the government will act to sweeten the bitter pill. Already, disquiet writs large. Therefore, government’s intervention need be urgent and fast before desperation sets in.
The Oronsaye Report which recommended the merger, abolition and reduction of MDAs remains another difficult proposition yet significant in reducing the cost of governance in the country which is among the highest in the world. The past administrations wriggled out of the responsibility of its implementation despite making loud commitment.
The limp economy needs an urgent rejuvenating shot. The 2023 tells it all about the nation’s fiscal health. More than 60% of the budget will finance personal costs (4.99 trillion naira), overheads (1.11 trillion naira) and debt repayments (6.31trillion naira) leaving little for investment in critical sectors of the economy.
Many difficult areas requiring the kind of courage that accompanied the withdrawal of the fuel subsidy exist. However, it is my considered view that there’s no auspicious time to implementing the report. The reform and elimination of wastes which the implementation of the report will inaugurate would do a great service to the country’s financial purse. It would be a step in the right direction.
The last administration could have executed the report given its enormous goodwill but it evinced an unmitigated absence of the needed courage. So, I think the present administration will need to show the way by first running a singularly lean cabinet as token of its commitment towards cutting the cost of governance before embarking on bigger challenges in that direction.
The last administration could have executed the report given its enormous goodwill but it evinced an unmitigated absence of the needed courage. So, I think the present administration will need to show the way by first running a singularly lean cabinet as token of its commitment towards cutting the cost of governance before embarking on bigger challenges in that direction.
Abachi Ungbo
