By Dan Amor
Over the years, Nigeria 's four decrepit refineries
which were built to refine crude oil into petroleum products for local
consumption and possibly for exports were left to rot just to make room for the
importation of petroleum products by the governing elite and their contractors.
This makes it pretty difficult for the importers or oil marketers to bring the
products to the reach of the final consumers without incurring additional
costs. The effect of this excess tax on the consumers in the name of landing and
other costs of carriage from the ports to depots across the country is what
government tries to cushion so that the products would be affordable for the
common man. This extra payment government makes to the oil marketers in order
to maintain an affordable price regime for the products is what is generally
referred to as oil subsidy.
Subsidy is therefore a government policy that would
act as a palliative due to fluctuations in the international market. But what
makes this policy so controversial in Nigeria is that everything about
the oil & gas sector is shrouded in secrecy. Ever since the military
administration of General Ibrahim Badamasi Babangida introduced the Structural
Adjustment Programme (SAP) in 1988, whose major intention was to vend juicy national
assets to willing buyers, those companies not sold to government officials or
their cronies, were allowed to rot in other to attract the sympathy of
Nigerians for their privatization. The refineries, two in Port
Harcourt , one in Onne near Warri and one in Kaduna , are part of those assets. Since the
Babangida era, Nigerians have been living with this menace. It triggered a lot
of civil unrests during which several Nigerians including university students
were killed.
*Buhari |