NIGERIANS have gone back to the days of trekking, and some ‘sensitive’ state governments have ‘graciously’ enacted the COVID 19 policy of ‘work from home’. The streets have become bare, the roads have less traffic and the economy is receding. All these, The Hope observes, is the outcome of fuel scarcity, and when present, the astronomical increase in its pump price to the tune of more than a thousand naira per litre. 

IN a country where good policies lack  good execution, ministries and agencies are at competitive loggerheads, instead of being collaborative nation builders, we are dismayed that for whatever reasons, and despite the name change and new status, it is now clear that the NNPCL under Mele Kyari has, despite earlier observations and warnings in our previous editorials, put the nation and  her peoples in a precarious situation.Two factors undermine Nigeria’s economic despondency, and precarious aftermath in the global and national economy. These are the dollarization of the Naira, as well as the price volatility of fuel prices in Nigeria. These are the primary cause of hyper-inflation in Nigeria.

THE current unofficial increase (based on the denial of the Federal Government) in fuel pump price comes at a time when the Federal Government mandated all traders to bring down the price of goods in the Nigeria market. However, within the context of the laws of demand and supply, draconian and  antidevelopment  policies  do  not  stabilize  prices.  We  have  observed that the  Federal Government’s response to national discontentment falls short of the expectations of democratic tenets and acceptable global practices.

THUS, despite the peaceful demonstrations against the hard times faced by Nigerians, it is more painful that a peoples’ government allows policies that engender more hardships to the people at a time when students would be resuming for another session in various schools across the country. Nigerians had  hoped  that the establishment of the Dangote Refinery Limited (DRL), given the  inability of government  to  resuscitate  or  revitalize  the  moribund  refineries,  would  bring  succor  to  the masses. However, Aliko Dangote’s ordeal in the procurement of crude oil, and then the policies of purchase of the product seems to send a message of gloom to Nigerians.

IF Nigerians had hoped for more supplies, and thus a reduction in the fuel pump price, the NNPCL had enlightened that ‘…we emphasize that there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL. The NNPC Ltd will only fully off take PMS from the DRL if the market prices of PMS are higher than the pump prices in Nigeria. The DRL and any other domestic refinery are free to sell  directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products. NNPC Ltd has no desire or intention to become the distributor for any entity in a free market environment, and therefore, the notion of becoming a sole off-taker does not arise.” 

THEREFORE, Dangote Refinery that produces under high production costs, (given Nigeria’s infrastructural deficiencies) has neither guaranteed market, nor domestic protection and would be made to compete with foreign exporters of the products to Nigeria, to the advantage of middlemen than to Nigerians. With the hostile business environment experienced so far by DRL, the neighboring countries may well benefit from the private refinery than Nigerians.

THE Hope frowns at the customization of an anomaly in which sitting Presidents in Nigeria also  double  as  the  Minister  for  Petroleum.  Given  the  workload  of  the  President  and  the indispensable  nature of petroleum in Nigeria, good decisions are hampered  by  bureaucratic bottlenecks and access to the Minister in times of crises often proves abortive. Thus, it is not a surprise that despite the President’s promise that our national refineries would start working within six months; the oil pipes have remained dry and irresponsive.

IT is however hard to believe that the President and Federal Executive Council are oblivious of the hard and trying times that Nigeria (ns) faces during this period.  The President has however left no one in doubt that hardship is the only way to progress. In faraway China, he had insisted that “… “Nigeria is going through reforms, and we are taking very bold and unprecedented decisions. For example, you might have been hearing from home in the last few days about fuel prices. But, can we help it?” The President is oblivious of the fact that for several years, and at different fora, since he assumed office, ideas on how to ‘help it’ has not ceased to flow from different quarters, but his administration seems to dance to a singular tune produced by His Excellency.

WITH PMS selling as much as N1,300 per litre, and the meager minimum wage being far from implementation, The Hope  warns  that the situation was not  as bad as  this,  when Nigerians  embarked  on  the  #EndBadGovernance  protest.  A  good  Government  thinks  about making things better for citizens, especially when these have sacrificed for the nation and ruling class over the years. We wish to inform the government that the cost of living is far beyond the reach of all Nigerians, and the situation worsens daily and the people are angry. Government is in business to secure lives and also guarantee citizens’ welfare. A government that is blind to the peoples’ travails, deaf to their anguish and insensitive to their silence is tilting towards failure.

      IF this  soaring  price  continues,  the  planned  fearless  protest  in  October  will  make  the EndBadGovernance a child’s play.