Monday, September 14, 2020

When Will Nigeria Stop Fuel Importation?

 By DAN AMOR
Sometime ago, the former Petroleum Resources Minister, Mrs. Diezani Alison-Madueke hinted that the Federal Government had planned to stop the importation of refined petroleum products in 24 months. I had said in this column then that if that ambitious plan was not met, Mrs. Alison-Madueke should be prepared for a legal battle with concerned Nigerians as her wild goose chase would amount to perjury, a criminal offence since she made the statement under oath in her official capacity as minister of petroleum resources. The truth, however, is that our government officials make statements just because they have to read out something to the expectant public for the fun of it. 

There is usually not substance or truth in their mouths. Otherwise, why would the former Minister predicate the stoppage of importation of refined petroleum products on the turn-around maintenance of the four decrepit refineries? She knew that even if the four traditional refineries were to function optimally their total output would still not meet the demand for local consumption. All things considered, the business segments of the society and the consuming public that suffer the brunt of petroleum products importation would have jubilated at the pronouncement of the then Minister in far away Vienna, Austria. 

But no one did applaud Mrs. Alison-Madueke as pledges from Nigerian government officials, despite their explicitness, only serve to mislead productive society and the wider population. The current administration under the leadership of President Muhammadu Buhari is also in the habit of promising what they cannot fulfill. The pump price of petrol was N86 per litre when Buhari campaigned in 2015 that his government would bring down the price to N45 per litre in the event of his winning the election. 

More than five years after winning the election, the pump price has been jerked to N162 per litre thereby subjecting the people to untold hardship, poverty and gnashing of teeth. Yet some cynical jesters still clap for Buhari as the best president Nigeria has ever had.

It could be recalled that in August 2011, former President Goodluck Jonathan himself ordered the Nigerian National Petroleum Corporation (NNPC) to commence the process of building two additional refineries within 24 months to end petroleum products importation. Until he lost election in March, 2015, nothing had yet been done along that line. 

This present APC government also promised Nigerians as part of their campaign mantras that they would build four modula refineries within their first year in office. More than five years down the road, what have we seen? Fuel importation with incessant hike in the prices of petroleum products is still the norm. How long more will Nigerians suffer before the Buhari government realise that the burden is so much on the people? 

Most unfortunate is the pronouncement last week by Mr. Garba Shehu, Buhari's media goon on CHANNELS TELEVISION that the prices of foodstuffs have started coming down even when Nigerians are paying more. Why are they mocking the suffering people of this country? Why are these little Pharaohs calling themselves progressives in power? Who will redeem Nigerians from the hands of these power drunk monsters? Why is the Nigerian state so wicked and callous? 

But it is indeed regrettable that the Presidency is unbothered by the negative turn of events and the dire implications for its own image. What has been evidenced is the grossly limited capacity of government to translate plans and policy pronouncements into concrete actions and measures that could enhance the quality of life of the citizens. 

For the price regime that it intended to sustain, all that was required of government was a firm determination to fully re-stream its four crude processing plants in Port Harcourt, Warri and Kaduna by setting performance targets for the NNPC and also liberalise the sector by encouraging investors to build their refineries. Why has it become a Herculean task for this APC government to build modular refineries that it promised Nigerians it would accomplish within their first year if voted into office in 2015? 

The Corporation would not have had any reason to miss the targets, having devised its own means of sustenance by cornering proceeds from crude oil sales in two so-called commercial accounts it established abroad in 2003. Unconstitutional as that act is since it was inspired by a corporate desire to sidestep a 2002 Supreme Court ruling that annulled the funding of the NNPC through first line charges, government turned a blind eye to it. Funding ceased to be a problem of the Corporation after the establishment of those accounts, yet the refineries have never attained any appreciable level of operation over the years, as government hardly demonstrates any interest in its activities beyond what accrues from Joint Venture equity holding. 

 If the NNPC has been fired by anything close to a sense of mission and patriotism, Nigeria’s dependence on fuel imports would have been minimal. By extension, the country would have been sufficiently insulated from the unending astronomical surge or lamentable fall in world prices of crude oil. Unfortunately, the Buhari-led Federal Government which is implementing the conditionalities of its massive borrowing binge from China and other numerous creditors, is busy lying to Nigerians that its incessant increases in the prices of petroleum products are responses to the vagaries of demand and supply in the international market. What a shame! 

Government needs to look back to re-engage the thinking and motivation that prompted its issuance of operational licenses to 18 private companies to establish their own refineries during the Olusegun Obasanjo administration. In the face of the failure of the major players in the petroleum sub-sector to plan and manage the operations of the oil and gas sub-sector to guarantee product availability and accessibility, Nigerians can no longer afford to leave their fate in the hands of economic sharks and capitalist adventurers. 

It is patently wicked that Nigeria, which is the sixth highest producer of crude in the world and first or second in Africa, could subject her citizens to this harrowing experience. When did it become wise economic judgment for the citizens of an oil producing country to always suffer when the product is selling high or low in the international market? The Nigerian condition is like the analogy of the wealthy farmer who allows his children to suffer so much hunger just because the children of his poor neighbours have no food to eat. Whereas other countries of the world are striving to cushion the impact of the lockdown orchestrated by the Coronavirus pandemic, the Nigerian government is busy shunning out policies that promote poverty, pains, crime and insecurity in the country. 

The President boasted last week that history would be kind to his regime for the courage to remove the fuel subsidy, what he said, previous governments could not do. Why did it take him five years to remove what he did not believe existed? Is he sure that the subsidy has been removed, and that there would be no further increases in the pump price of fuel until he leaves office in 2023? Who will understand his hyperbole? 

Does he think that Nigerians still trust him? Even as oil marketers many of whom are now Buhari's personal friends, prefer fuel importation to letting the refineries work, it is expected that the authorities would realize soon enough just how embarrassing it is that Nigeria, one of the world’s largest exporters of crude oil, is unable to refine the crude to meet its fuel requirements. It is a pointer to poor planning and leadership failure in the country. It is expected that government would act speedily to redeem that pledge for the good of Nigerians, economic planning as well as its own image as the ultimate authority on matters of resource allocation and national development. Nigerians have suffered enough.
*Dan Amor, a public affairs analyst, writes from Abuja 

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