Since I posted my top ten #fuelsubsidy jokes, I have had to respond to a few friends who thought I was being frivolous about a serious topic. Because this is so hot in the news right now, I will jump straight into my position on the issue.
It is clear that the subsidy removal is an attempt to come up with an economic solution to the social problems of corruption, collusion of political elite with the private sector and poor levels of accountability in governance – in the oil sector. It might not be the best way to go about it, but given the facts… it is the most sensible in the long run!
Unfortunately, we will be plunged into an exceeding difficult economic situation as the cost of transportation, a major part of the average Nigerian’s expenditure, will lead to increases in the price of ALL goods and services. There is no way to romanticize about this reality. It means the disposable income of families will diminish, businesses may be forced to shut down or lay off workers and people will generally become more discontent as a result of the memory of forgone alternatives. The possible spill over effect of this cannot be quantified: religious frenzy, activism, increase in crime, etc.
However, economic crises such as these have the potential to correct a lot of things wrong in the system – and as a people, we are infamous for our ability to adapt with a smile. In the words of Fela… ‘suffering and smiling’. The potential economic hardship is a threat mainly to us, it is not the biggest threat to the next generation of Nigerians.
I unreservedly support any activities that aim at:
- improving the quality of infrastructure in critical sectors that will make production possible for businesses (power, security, metro ICT infrastructure, etc) and make life possible for Nigerians (agriculture, health, education, public transportation, etc)
- achieving lasting changes at reducing the cost of governance (salaries of federal officers and legislators, frivolous overheads and allowances, etc)
- improving accountability and public access to information on how government is run (a freedom of information bill that is not neutered, transparent public procurement practices and the establishment of an efficient corporate tax/environmental safety regime, etc)
- improving the access to capital for young entrepreneurs, SMEs and businesses wanting to expand (not in the likeness of the Apprentice wannabe – Youwin)