Reflections on subsidy debate

Also published in Daily Trust

The controversy that trailed the recent removal of oil subsidy triggered an interesting debate amongst Nigerians with divergent opinions on the issue. Nigerian economists, in particular, both the literalists who hardly see beyond the literal meanings of the economic theories they have learnt, and the pragmatists who supposedly view such theories in the context of Nigeria’s peculiar socio-economic circumstances, argued over its economic implications, advantages and disadvantages in the short, medium and long term. Likewise, other intellectuals in various academic fields and elsewhere, the barely educated, and even uneducated passionately expressed their views against or in favour of its removal. 

Being a free-for-all right from the start, the debate was unfortunately marred by rudeness and intolerance that characterized the approaches of many contributors especially on social media and other internet platforms where allegations and insults were traded. In fact, even some otherwise respected public commentators went to the extent of making insulting innuendoes against those holding contrary views on the issue.

Interestingly, as the debate unfolded, some of such public commentators especially who were particularly critical of former President Jonathan administration in favour of the then presidential candidate, Muhammad Buhari, betrayed a subtle, albeit apparently deep, sense of disappointment and frustration. Though they sought to hide their emotion, some observers were able to perceive it, and, in fact, rightly or wrongly concluded that, such public commentators simply overestimated the extent to which their respective criticisms of former president Jonathan and support for Buhari had actually contributed toward the election victory of the latter. They had, therefore, expected to be ‘appropriately’ rewarded with political appointments.

Anyway, what made the debate even more interesting was its political dimension, because the subsidy removal that prompted the debate ushered an equally interesting turn of political events in the country. Starting with President Buhari, for instance, who removed the subsidy, he had vehemently opposed former President Jonathan’s attempt to remove it. Also, many of those who criticized the previous administration and condemned its attempt to remove it are now in various public offices as governors, legislators or in different public offices as political appointees seeking to justify government’s decision for its removal. In the same vein, many of those who kicked against it during former President Jonathan administration, and even took to the streets in protests have now willingly accepted it, and have, in fact, literally turned into government apologists in this regard, seeking to persuade as many Nigerians as possible to understand the circumstances that warranted its removal.

Besides, the subsequent nationwide labour strike, which was soon aborted due to the pervasive noncompliance across the country that compelled the Nigeria Labour Congress (NLC) to call it off was probably the most unpopular nationwide strike in the history of labour strike in country.  Well, notwithstanding where one stands on the issue of oil subsidy removal, which had until recently lingered for decades, it’s obvious that the dynamics behind the dramatic change of Nigerians’ attitudes towards the issue had little, or rather, perhaps nothing to do with the economic imperatives and economic theories officially and repeatedly cited to justify it. After all, the successive government over decades that attempted to remove it had cited the same economic imperatives and economic theories, yet Nigerians rejected the idea anyway, even though nobody basically denies such economic imperatives or disputes the excellent economic sense that such theories make economically. Instead, Nigerians rejected it because on every occasion they believed that the government would not actually deliver, after all, and that the saved funds would simply be misappropriated living the national economy to deteriorate further.

Moreover, even though the successive governments had actually reduced the subsidy amounts over different occasions promising that the saved funds would be wisely and transparently invested in more sustainable economic sectors, the commensurate economic benefit promised by such successive governments never materialized, as the economic situation continued to get worse.  

The change of Nigerians’ attitude in this regard and in this time around, therefore, is actually informed by their sheer sense of confidence in President Buhari, for he will certainly neither steal nor turn a blind eye to stealing. Nigerians now realize that it would no longer be business as usual under his administration; hence the saved funds from the oil subsidy removal and indeed other public funds will not be plundered with impunity anymore.

By the way, though it’s tantamount to an inexcusable naivety to assume that theft of public funds has completely ceased under Buhari administration, yet the mere sense of absolute confidence in the integrity of the President is realistic enough to justify one’s conclusion that the country is finally on the right track toward sustainable socio-political and economic reform.