On Right Track As Hunger Envelops The Land?

 By Adekunle Adekoya

Earlier in the week, at the 70th birthday celebrations of Pastor Tunde Bakare, President Bola Tinubu and the governor of Lagos State, Babajide Sanwo-Olu, spoke for the umpteenth time on the excruciating economic and social pains Nigerians are going through.

President Tinubu was represented by Secretary to the Government of the Federation, Senator George Akume. Akume said at the occasion: “The President acknowledges that times are hard, but at the end of it all, there is always light. And solutions to complex problems can never be as instant as coffee, but we are on the right track.”

That is what riles me: Acknowledging that things are bad, and insisting that your remedies are the only balms available to soothe the pains. That cannot be possible. That there will be light at the end of it all, as I see it, is becoming wishful thinking. For me, this Friday, how many Nigerians will be left to see the light? Worse, beyond the ineffectual palliatives, what else is being done by government to ease the situation? How can government be on the right track as hunger envelops the land?

Inevitably, my discussion today will have to go back to the issue of petrol subsidy removal and the pains that this action has inflicted on all of us, as a result of the manifold increases in the price of petrol from N187 before May 29, 2023 to N1,025 that we are paying now. Also, during the week, the NNPCL announced that its has stopped importation of petroleum products.

Mele Kyari, NNPCL’s GCEO spoke on Monday at the 42nd Nigerian Association of Petroleum Explorationists, NAPE, annual international conference and exhibition in Lagos. Delivering his keynote address, Kyari said the national oil company is now off-taking fuel from the Dangote Petroleum Refinery and other local refineries. For emphasis, Kyari said: “Today, NNPC does not import any product, we are taking only from domestic refineries”. 

Great. What’s in that for us, ordinary Nigerians? Between NNPCL and local refiners, especially Dangote Refinery, there exists substantial opacity about the pricing template, which obviously is still reflective of imported petrol. If truly, we are now running on locally refined petrol, there is no reason why we should pay so much for one litre of petrol, and in consequence pay so much for food and transportation. 

At this point, I am of the conviction that the pricing template in use before should no longer apply, while a new one should be worked out and applied. That template, in my estimation, should include cost of crude, cost of transporting crude to the refineries, cost of refining, refiner’s margin, and cost of haulage to filling stations. Unfortunately, that is information that neither NNPCL nor Dangote Refinery is willing to divulge. 

As I noted in an earlier edition of this column, with imported petrol, the following charges apply: 1. FOB cost — N434.32; 2. Freight cost— N86.48; 3. Insurance cost — N10.58; 4. Lightering cost — N23.45; 5. Jetty depot fees — N15.35; 6. Storage fees — N12.58; and 7. Financing costs — N34.67. Other charges are 8. Foreign exchange costs — N23.45; 9. NPA charges — N10.58; 10. NIMASA charges — N5.29; 11. Customs duties — N51.17; and 12. Other levies and charges — N50.00. 

All these add up to N757.92. Given the current pump price of petrol, I am assuming that N267.08, which is the difference between theses charges and the prevailing pump price covers cost of crude, refiners’ margins and other costs. What I seem unable to wrap my Ijebu mind around is why the price of petrol is still what it is. Are all the charges listed above, including FOB cost, still applying to locally-refined products, especially the ones that matter most — petrol, diesel, and DPK (kerosene and Jet A-1)?

If so, what is the political leadership doing about it? Or they are in cahoots with the oil czars? Have these people conspired to sentence us to perpetual economic slavery and unending hardship? If truly the president is aware of hardship in the land, as Senator Goerge Akume said, what is he doing about this fuel price situation that is threatening the very fabric of the nation’s economy? It can be seen that the palliatives put in place, where they have been implemented, is not scratching the surface of the problems. 

Even the much-touted CNG initiative is backfiring as vehicle explosions are being recorded. Indeed, Malaysia recently announced plans to phase out CNG use next year as a result of mounting fatalities in its use in that country. And that is what the president and his men are promoting as a solution. Again, I disagree that subsidy should be removed. The argument for its removal, in the main, has to do with the malfeasance that governed it, including smuggling. That is not the fault of the masses of Nigeria. That is simply failure on the part of government.

Also, at the Bakare birthday, Governor Babajide Sanwo-Olu of Lagos said: “We that are in public service, we need all your prayers. It’s tough times, but you see, we are also tough men, and we know that at the end of the tunnel, there will be a bright phase.” 

Really? It should actually be the other way round; government officials should pray for the masses who are bearing the brunt of their decisions. We are actually the tough ones, not those in government. Again, when will we see the light at the end of the tunnel? In fact, when will we get to the end of this tunnel of economic difficulties? That is what should engage the minds of those managing our affairs. 

*Adekoya is a commentator on public issues