Opinion
The Folly Of Petrol Subsidy Protests
Nigeria was in the last three weeks gripped by the power of the street. In response to a government announcement ending the subsidy of petrol, there was a tidal wave of protest and disruption, forcing the government to negotiate with the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), the leading workers’ unions in the country. The new-found power of the Nigerian street is an instance of a global pattern, but the street can dance to many tunes.
In North Africa, it has faced down autocracy. In America, its anti-government agenda was entirely different: a tax mutiny. Were the demonstrations on Nigeria’s streets a variant on the Arab spring or a variant on the Tea Party?
Nigeria is not a repetition of North Africa. Far from an unelected autocracy, the present Nigerian government emerged last April from the fairest elections in the country’s history. But the legacy of past gross abuses of power is that citizens are profoundly suspicious of government. And so a needed reform has ignited protests that resemble the sad folly of the Tea Party in the United States.
If ordinary people are sufficiently disbelieving of government, it is entirely possible for populist rhetoric to seduce people into fighting against their own true interest. In the US, despite an extraordinarily low tax burden, dramatically rising inequality and an unsustainable fiscal deficit, poor people demonstrated for tax cuts for the rich.
But in Nigeria, despite decades of elite plunder of oil revenues by means of scams such as the petrol subsidy, the poor and the young have turned out to demand its restoration. Wittingly or unwittingly convinced that government is theft, they clung to the pitiful benefits of a petrol subsidy. Should the poor have been on the streets?
The petrol subsidy was costing government some $8billion a year; in other words, the average Nigerian household was forfeiting more than N750 ($4.70) a week of public money. Much of this expenditure was captured wholesale and shipped out of the country by a privileged few. Even the petrol that was sold locally at its subsidised price disproportionately benefited the better off.
There are a myriad of ways in which public money could benefit poor people more than the petrol scam – for example, children could be given bursaries for attending school. That is what poor people should have been urging on their government, and it should now be the focus of political compromise. Should the young have been on the streets?
The petrol subsidy was a classic instance of squandering the oil revenues on current consumption. As oil wealth is depleted, the government has a responsibility of custody to the next generation. Enough of the revenues from oil must be invested in infrastructure and other assets.
This is a responsibility that previous Nigerian governments failed to meet. But at last, the President Goodluck Jonathan government decided to take its responsibility to the next generation seriously by cutting off the huge chunk of money given to petrol importers (whether fictitious or real), and redirecting same directly to the Nigerian people through investments in infrastructures and other people-oriented projects and programmes. Now instead of Nigeria’s youths taking to the streets to celebrate this change of policy, they did the contrary, vehemently lobbied for a return to the status quo.
In attempting to harness the present oil bonanza for development, reformers in the new Nigerian government were trying to avoid a repeat of the history of plunder. But they met a stiff opposition: powerful interests in favour of plunder, including some prominent government officials. They have arrived at a point where repeating history is the default option. But societies can also learn from their history.
Germany is the best-managed economy in Europe. It used to be the worst: from hyperinflation, Germans learnt “never again”. Germans are locked into sound decision-making by a combination of legal rules, dedicated institutions and a critical mass of ordinary citizens who understood why the rules and institutions mattered and so defended them.
Nigeria is fighting a more complex dragon than hyperinflation, and so the rules and institutions will need to be different. But the current experience has demonstrated that Nigeria, like the US, has yet to build that critical mass of economic literacy among its citizens. The necessary foundation, a burning sense of “never again”, is most surely there. But if popular anger gets derailed into populism, whether about petrol subsidies or tax cuts, that potentially valuable social energy, is wasted.
Yet, while it is evidently possible to fool many people for some of the time, there does appear to be a ray of hope. In the US, the Tea Party has fizzled: more recently, streets have been claimed by protesters from the other side of the political divide demanding tax increases for the rich, not tax cuts. ‘We are the 99 per cent’ would make as good a slogan in Nigeria as in America, for a protest demanding that oil revenues be spent wisely and transparently. However, with the peoples’ protests against petrol subsidy removal and government’s reversal to N97 per litre from N141 per litre full deregulation price, Nigerians may have to wait for more years to begin to reap the full dividends of democracy.
Collier, Professor of Economics and Director, Centre for the Study of African Economies, University of Oxford, London, contributed this piece for the Financial Times.
Paul Collier
Opinion
NDDC, A Regional Commission?
The Niger Delta Development Commission was established by the Federal Government of Nigeria to mitigate the effects of oil exploration and exploitation activities on the oil bearing communities or States. It is worthy to clarify that some of the NDDC states are not from South-South geographical zone. NDDC is about oil producing States, irrespective of the geographical location. South – South geographical zone is made up of six states namely; Akwa-Ibom, Bayelsa, Cross River, Delta, Edo and Rivers State. As it is today, there is no regional commission called South-South Commission. Rather, what is well-known, is Niger Delta Development Commission to aid development in the oil-bearing States. NDDC is a distinct interventionist agency of the Federal Government of Nigeria to douse down tension or agitation of the people of Niger Delta region.
Agitation by the bearing community led to the establishment of the Ministry of Niger Delta Affairs, despite being scrapped by the present administration of President Ahmed Bola Tinubu. For instance, Abia State is in South-East region and it is part of NDDC, and it will benefit from South-East Commission established by the present Federal Government of Nigeria, to fast track development of South-East Zone. So, Abia State would benefit from NDDC and South-East Commission. Abia is an oil producing state in Nigeria. In the same position, Imo State is a South-East State and also an oil producing state; which automatically makes it a member of NDDC State. And would benefit from both commissions; and no doubt, because of being an oil producing State and by location, South-East State. Automatically, by virtue of oil activities going on in the two Eastern States, they are members of Niger Delta Development Commission.
In the line of operation, Ondo State is in South-West region and by virtue of being an oil producing State, is a member of NDDC. This no doubt, makes Ondo State a beneficiary of NDDC creation. There is no question to ask why Ondo should be member of NDDC? And Ondo State is a member of South-West Development Commission, because of its geographical location as a State in that region. So, the argument that NDDC is a regional commission is out of place. Thus, NDDC is not only for States in the Niger Delta. Another question is: is there an established commission known as South-South Development Commission, that Rivers State, Akwa Ibom, Edo, Delta, Bayelsa and Cross River should benefit from? The answer is capital No! So NDDC is not a regional commission because it is not only for the six states that make up the South- South. Hence, there is need for the present Federal Government of Nigeria, to urgently address the inequality and disparity created already.
This is because the six geographical zones have zonal commissions. The Federal Government should correct the equation. The misconception that NDDC is regional is not in order and is not correct. As it is today, there is no South-South Commission to help fast track development in the region. The political representatives from the South-South zone, should unite themselves and demand for South-South Development Commission as other zones have theirs. The Federal Government should put modalities in place to establish South-South Development Commission. The status quo should not be allowed to remain as it is now. Thank God, the daily quota of oil production has increased to about 2.5m barrel per day. And that is the reason why South-South should also benefit from the increase of oil activities in Nigeria.
Observationally, every region is bracing up to gain from the oil revenue of the country. And South South Zone which seems to be the hub of oil and gas is lagging behind in terms of purposeful development. NDDC should embark on an aggressive development of the member states. The Federal Government of Nigeria, should correct the negative believe that NDDC is a regional commission. Politicians of the zone should sheathe their swords of discrepancies and work together for the development of the zone. There should be a united front to convince the Federal Government to create or establish South-South Development Commission. Therefore State of the South-South zone in the Niger Delta Development Commission should be made to benefit like their counter parts from South- East and South- West in the NDDC. Thus, NDDC goes beyond regional vision. And that is why the Federal Government should establish South- South Development Commission to balance the equation of regional commission springing up in the country.
Frank Ogwuonuonu
Ogwuonuonu is a free lancer in PortHarcourt.
Opinion
That NANS’ Induction Of Former Tai LG Boss
Last week, precisely Thursday, February 20, 2025, students in Nigeria and the diaspora, under the umbrella of the National Association of Nigerian Students (NANS) inducted the former Chairman of Tai Local Government Council, Chief Matthew NenuBari Dike into its Hall of Fame and gave him a certificate of recognition for what they described as his “outstanding contributions to the development of education and students in Nigeria”. Presenting the award at Saakpenwan, headquarters of Tai Local Government Area, the National Vice President of the National Association of Nigerian Students, Mohammed Sabo, said unequivocally that the induction into the Hall of Fame and conferment of the award on Chief Dike was essentially by merit; a product of his endeavor in building the education sector and human capital in Nigeria.
According to the National Vice President of the National Association of Nigerian Students in Nigeria and the Diaspora, the students body does not have a history of conferring frivolous and financially induced awards on people. Chief Matthew NenuBari Dike is one of fewest local government area chairmen of Nigeria that have been so recognised and honoured by students in Nigeria and the diaspora. This is a welcome development given the fact that Tai Local Government Area has not been one of the local government areas in Nigeria that has attained the social, economic and infrastructural sophistication to come to national limelight because of its rural and seeming obscure nature. However , good works and success like light cannot be suppressed, not even by enemies. Success is contagious, a force and voice that speak louder than arm-chair and callous criticism.
Looking at the antecedents of the awardee and recipient of the Nigerian students goodwill, Chief Matthew NenuBari Dike, it is not saying a new thing that he deserves the honour. Within 100 days in the saddle as chairman of Tai Local Government Area, Chief Dike had made significant achievements in driving the development of the education sector and students in Tai Local Government Area, and of course, Nigeria, a feat that marked him out for honour by the National Association of Nigerian Students. Aside recruiting 250 adhoc teachers to improve teaching and learning in Basic and Senior Secondary Schools in the Local Government Area, the former chairman has also established a Special Science School to develop manpower overtime in critical areas in the Local Government Area having noticed that in the last ten years no student of Tai Local Government Area had gained admission to read, Medicine, Engineering, Medical/Health Sciences and many other science based courses.
Chief Dike’s initiative is therefore to address a felt and critical need of the people. Through a rigorous screening process, 104 students emerged as the first set of students to begin the Special Science School at its take-off facility, Model Primary School 2, Uedume, under Mr. Tete Baridamue Osih as the Director. Speaking during the Inauguration of the School, two weeks ago, the former Chairman of Tai Local Government Area, Chief Dike affirmed his administration’s commitment to deliver a new building for the Special Science School . No doubt, the Chief Dike’s adventures in the Education sector is a novel, and capital intensive project. It is a road less taken; only Local Government Area chairmen who are selfless, sacrificial and committed to human capital development of their people can take up such gigantic project, considering the cost-implications. Establishing a fully-furnished Science School for the Local Government Area requires a modern laboratory, provision of science books, a state-of-art science library and adequate funding.
Recurrent expenditures such as payment of salaries of staff, political appointees, councillors, overhead, and other entitlements of workers combined with ongoing capital projects and empowerment programmes that the chairman of the Local Government Area is embarking on, amidst limited income source, make Chief Dike a celebrity in governance, after the like of his principal, Sir Siminalayi Fubara, the “Rivers First” Governor. Students in Nigeria and the diaspora therefore, were objective, sound in judgement and devoid of primordial sentiment when they adjuged the former chairman of Tai Local Government Area worthy to be inducted into their Hall of Fame and honoured for his contributions. The adage that the “aroma of the Fart determines the substance of the poo” finds expression in the person of Chief Dike whose exploits in the education sector aimed at developing the capacity of students to meet critical needs of the Local Government Area, is a testament that Chief Matthew Dike will do more when given higher responsibility or another term.
John C. Mason, in one of his best sellers, “Leadership Gold”, said every human organisation rises and falls on leadership. A good leader will inevitably midwife development in his sphere of influence. This corresponds with the wise saying of the Biblican King Solomon that ‘when the righteous rules, the people rejoice but when the wicked rules, the people groan”. The socio-economic situation of a people to a great extent shows who a leader really is. The works or activities of a leader in relation to the people speak volumes of leadership stuff. Chief Matthew NenuBari Dike made significant impacts in the education sector and human capital development for a greater development in Tai Local Government Area. He is determined to leave a legacy in the sands of time of that Local Government Areas by raising millionaires through his economic empowerment programme to drive self reliance and reduce the level of abject poverty the people wallow in.
If Chief Dike had to achieve such commendable feat within only 100days of 1,095 days term of office, with availability of funds or sustained financial resources, a stable economy and peace, he had the capacity to achieve ten times what he had done for the people of Tai Local Government Area. While this is the beginning of a long and tortuous journey in governance, it is necessary to join students in Nigeria and the diaspora to commend Chief Dike for his impacts in the critical areas of education, human capital development, economic development, etc. To act contrary is to live out the saying of Decimus Magnus Ausonius that “The earth produces nothing worse than an ungrateful man”.
Igbiki Benibo
Opinion
Dealing With Fake Drugs In Nigeria
Since late Prof. Dora Akunyili’s tenure as the Director General of the National Agency for Food, Drug Administration and Control (NAFDAC), the fight against fake, illegal and expired drugs seemed to be in limbo until the current raid by the agency. For over one-week NAFDAC has been in the news as it has taken the war to the door post of fake, unauthorised, expired medicine dealers across the country. From Ariaria Market, Aba to Bridgehead, Onitsha, Anambra State, to Idumota drug market, Lagos, the stories are the same. Warehouses are being raided, medicine shops are being closed, counterfeit and expired drugs are being destroyed and so on. The current Director General of NAFDAC, Prof Mojisola Adeyeye, must be commended for the reinvigorated effort towards ridding our society of poisons in the name of drugs.
Some of these drugs according to NAFDAC are expired, imported drugs which are repackaged and pushed into the markets. Some of the seized drugs were vaccines stored in dilapidated, unventilated rooms, sealed with iron sheets in highly unsanitary conditions. It is doubtful if there is any adult Nigerian that is not aware of the damage caused to the citizens and the country by fake and substandard drugs. How many times have we or someone we know taken malaria drugs, antibiotics or other medicines for a cure of an ailment and they were ineffective? How many people in the country have died because fake or relabelled expired drugs were administered to them? Experts have posited that fake, adulterated, substandard drugs fuel antimicrobial resistance, as substandard antibiotics fail to properly treat infections, leading to stronger and more resilient bacteria.
The proliferation of these harmful substances is indeed a crisis of national significance. It threatens public health, weakens trust in the healthcare system, and exacerbates Nigeria’s already fragile health sector. Local drug manufacturers who invest millions of Naira to produce genuine, quality drugs for the citizens are denied the fruits of their labour by criminal syndicates who take advantage of regulatory loopholes and weak enforcement to flood the market with dangerous substances, putting millions of lives at risk. So, by all means, they should not be spared. But the question that begs for an answer is, where were the government agencies when these fake and expired drugs entered the country and travelled to the states? Why were they not intercepted at the point of entry either via the ports or the land borders and the importers arrested and prosecuted?
According to Adeyeye, most of these poisonous drugs are brought into the country through the ports and the porous borders. Is there nothing that can be done to beef up security and checks against illegal drugs at the borders? Or is it a case of the personnel at the borders looking the other way when they must have been settled thereby allowing unhindered entry of fake and unauthorised products into the country? It is also worrisome why we have allowed drugs to be sold in the open markets in the country. For many years, the federal government has been coming up with policies to address the uncontrolled and undefined buying and selling of medicine with or without approval, all to no avail. Open drug markets continue to thrive, leading to abuse and counterfeiting.
A former National Chairman of the Association of Community Pharmacists, Mr Samuel Adekola, in a recent interview bared his mind on the issue of open drug market. He said, “We know that open drug markets are not the best for Nigeria because of how the drugs are sourced. The government has been coming up with policies to address it, but you know that nature abhors vacuum, so once there is no alternative, these markets crop up because people must use drugs. Policies of the government must support alternatives which will make the drug distribution process/system in Nigeria a regulated and sanitised one. The whole essence of this is to save society from fake and adulterated drugs because the burden of fake drugs on citizen’s health and the economy is huge. Today, 70 percent of deaths in the hospitals arise from drug misuse or fake drugs.”
Early in the week, the NAFDAC DG during a television interview announced that the Kano Coordinated Wholesale Centre for drug marketers has taken off and that that of Lagos, Aba, Onitsha and other places are in the pipeline. Hastened efforts in actualising this will go a long way in checking the menace of fake drugs. Also, in addition to Adeyeye’s request for more funding and more staff for the agency to help in manning the borders and prevent the infiltration of poisonous drugs into the country, there is the need for technology-driven solutions to the challenge. The adoption of digital tools, such as mobile verification codes on drug packaging, can help consumers verify the authenticity of their medications. Blockchain technology can also be explored to track and trace pharmaceutical products from manufacturers to end-users.
NAFDAC and other regulatory bodies should be empowered with adequate resources to crack down on counterfeiters. Policies that improve oversight, enhance drug registration processes, and promote stricter penalties for offenders are essential. The nation’s drug distribution policy which stipulates penalties for defaulters must be implemented. While Adeyeye’s proposed death penalty for fake drug peddlers may be too harsh, many years imprisonment without an option of fine will not be out of place. While commenting on the recent raids, the National Chairman of the Pharmaceutical Society of Nigeria – Young Pharmacists Group, Tekena George showered some encomium on the NAFDAC DG, saying that beyond enforcement, her transformational policies promote local production of high-quality medicines in Nigeria, noting that by encouraging domestic manufacturing, she is not only reducing the country’s reliance on imported drugs but also strengthening the nation’s medicine security and economic resilience.
Indeed, over-reliance on imported drugs increases vulnerability to counterfeit products. Both federal and state governments should therefore encourage domestic pharmaceutical production, backed by strong quality control measures. This will ensure a safer drug supply chain. Nigeria should work closely with international agencies such as INTERPOL and the World Health Organisation (WHO) to dismantle transnational drug counterfeiting networks. Sharing intelligence and coordinating enforcement efforts will help disrupt the supply chain of fake drugs. Awareness campaigns are inevitable in dealing with the menace of fake drugs in our society. Many Nigerians remain unaware of the dangers of fake drugs. Government agencies, civil society groups, and healthcare professionals must therefore collaborate to educate the public on how to identify counterfeit drugs and report suspicious products.
Most importantly, the National Orientation Agency, religious and traditional leaders, parents, schools and other organisations must join hands in changing the “get rich at all cost” mentality of some Nigerians. As some people say, corruption, greed and selfishness are the root of all the problems in Nigeria. And unless these vices are dealt with all efforts at stemming fake drug distribution and other menace in the country will bear no positive result.
Calista Ezeaku
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