I
was at the Presidential Villa on Wednesday May 11th where a stakeholders
meeting involving the leadership of the National Assembly, governors, Labour
leadership, minister of state for Petroleum, ministers of Information and that
of labour held. The meeting was chaired by the Vice President. It was a
consultative meeting ostensibly to get the buy in of stakeholders. I was pumped
and ready to challenge any proposition for an increase in pump price and my
position was known to most people I spoke with.
However
by the time the Honourable minister for petroleum finished his doomsday
prognosis and gave a graphic account supported with facts and figures of where
we are and where we would be in a matter of months if we did not alter the
approach or fundamentally change the status quo, I had no option but to
capitulate. It was the first time I had been confronted with such a gloomy
picture. I found myself between a rock and a hard place. The facts were
incontrovertible and the prognosis and consequences dire.
We were in an
economic cul-de-sac and the country was spiraling down fast due to no fault of
this present administration. In fact it was clear that any responsible
administration needed to apply the brakes, bring this to a screeching and
painful halt and at least for now remove subsidy and deregulate. It was a short
term remedy which, all things being equal, would produce a long term solution
when the economy would have recalibrated.
I struggled with my inner angel and
knew this was the only way out. It was made abundantly clear to all seated that
in two months there would be no federal allocation to states and no state would
be able to pay salaries, including the buoyant ones. The Nigerian nation was on
tenterhooks. That’s how bad a picture it was. Indeed I was the first to ask
questions after the presentation still looking for a way out when I knew there
was none.
Whilst
I still believe in the principles I held on to so passionately years ago,
including the need to bring any deregulation exercise in conformity with the
law and the constitution, I believe this is such a time when we should look at
the times we are in and our practical situation as a country. I believe
(without sounding Trumpist) that Nigeria will be great again but we must rejig
and reboot our economy and take another look at the subsidy regime. Many will
say, but why did some of us kick in 2012 and if it was not good then why is it
good now? It’s a great question and they are right, but again the times are
different. In 2012, we were earning a lot of money from oil. Oil was selling at
about 100 dollars or thereabout. We had foreign exchange and petro dollars to
continue with subsidy. Now things are different. The economy is comatose and
Nigeria is on life support. Oil is selling at below 40 dollars and the currency
(dollar) needed to purchase the refined petrol is no longer available.
I
want to plead with my constituents and all Nigerians to work with government.
You are the most important stakeholders, never mind those of us that gathered
around a long table and cushy chairs in the Vice President’s Office on
Wednesday May 11th to take this far reaching decision. We did so only in a
representative capacity. I urge that you please give this government the
benefit of doubt and lets take a chance on whether or not the analogy and parallel
often drawn by proponents of deregulation in the oil industry to
telecommunications industry may end up a truism and that the price of fuel in a
laissez-faire, free market will come crashing in months. Lets consider it a
temporary sacrifice for the greater good, with the hope that as promised we
will be better off in the long term. This problem is not peculiar to Nigeria.
It is instructive that other oil producing countries e.g. Bahrain, have been
hit hard by the crash in oil price and are towing the same line and reviewing
their subsidy policies.
With
this new development I intend to fight with all I have for a review of the
minimum wage of all workers in Nigeria. Our country was built on social justice
and I cannot, no matter the realities, accept a situation where the cost of
living will be increased without a corresponding increase in wages. The
sacrifices that we need to make must be comprehensive. Indeed I believe the
“wealthy” must not only pay their fair share of taxes, if need be, there must be
an upward review of taxes paid by the highest income earners to enable
government review the wages of those on the lower rung. It is time to be our
brothers’ keepers.
I
know this is a painful road to take and I hate that I have to flip flop on this
one, but isn’t what they say “no pain, no gain”.
Source:
Femi
Gbajabiamila
Leader of Nigeria’s House of Representatives
Abuja;
femigbaja1@gmail.com.
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