By
Ikeddy ISIGUZO
The security and welfare of the people shall be the primary purpose of government – Section 14 (2b) of the 1999 Constitution
• WHY is it always easy for us to choose sentiment over logic?
• Why would anyone celebrate “deregulation of price of petrol?”
• What are the bases of the celebrations?
• How are MARKET FORCES supposed to flow through fuel at N145 per litre
eventually downwards?
• Why do we often situate our arguments by referring to price of fuel abroad?
• Where is the security and welfare of Nigerians in this decision?
• Has the primary purpose of government changed?
• Who changed it?
• What replaced it?
The security and welfare of the people shall be the primary purpose of government – Section 14 (2b) of the 1999 Constitution
• WHY is it always easy for us to choose sentiment over logic?
• Why would anyone celebrate “deregulation of price of petrol?”
• What are the bases of the celebrations?
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• Why do we often situate our arguments by referring to price of fuel abroad?
• Where is the security and welfare of Nigerians in this decision?
• Has the primary purpose of government changed?
• Who changed it?
• What replaced it?
Some basic FACTS:
• Fuel is still imported.
• Price of fuel is based on US Dollars (or Chinese Yuan Renminbi)
• If the Naira falls against the US Dollar (or Chinese Yuan Renminbi), the price of fuel will not be N145 per litre
• If the Naira gains against the US Dollar (or Chinese Yuan Renminbi) there are no guarantees that the price would go below N145 per litre
• There is scarcity of foreign exchange meaning that N145 per litre will not work
• “Everybody can bring in petrol” is not true, regulatory strictures are plenteous
• Our porous borders mean that the products would end up other countries willing to pay more than N145 per litre
• Our refineries never work at any reasonable capacity
• An increase in the price of fuel doubles prices of most goods and services, food, transportation
• Inflation will spiral
• Fuel is still imported.
• Price of fuel is based on US Dollars (or Chinese Yuan Renminbi)
• If the Naira falls against the US Dollar (or Chinese Yuan Renminbi), the price of fuel will not be N145 per litre
• If the Naira gains against the US Dollar (or Chinese Yuan Renminbi) there are no guarantees that the price would go below N145 per litre
• There is scarcity of foreign exchange meaning that N145 per litre will not work
• “Everybody can bring in petrol” is not true, regulatory strictures are plenteous
• Our porous borders mean that the products would end up other countries willing to pay more than N145 per litre
• Our refineries never work at any reasonable capacity
• An increase in the price of fuel doubles prices of most goods and services, food, transportation
• Inflation will spiral
