Thursday, 5 January 2012

The cost of Fresh air and Shoes


Have you ever seen employees oppressed the employers?

 A country/state where you can't have a peaceful protest without armed forces  interference. A president can call elected people "thugs" but when they respond they are invited by SSS.

How can you count yourself "lucky" based on other people's misfortune?

On January 1st 2012 at about 3pm, I read on twitter that fuel subsidy has been removed meaning Nigerians have to buy petrol at a "premium rate". I say Premium rate because we are an oil producing country, and we are buying petrol at about $1 for a country where many live below a dollar.

Like others, I took social network sites and started ranting.  You can see how fuel increase will affect the average Nigerian. What are the pros and cons of oil subsidy? A friend said Nigerians should stop complaining and that we should think deep.
 See conversation below
"ÀSÀKÉ-Ọ̀KÍN: which deep
ÀSÀKÉ-Ọ̀KÍN: in a corrupt country
Teejay: It will favor us on D
̶̲̥̅̊ long run
Teejay: But beginin will b difficult
ÀSÀKÉ-Ọ̀KÍN: Open your eyes youngman..
ÀSÀKÉ-Ọ̀KÍN: It doesn't..
Teejay: Removal of fuel subsidy will later draw down to high competitive stage
Teejay: Which will later regulate D
̶̲̥̅̊ price
Teejay: Like wat haPpened in D
̶̲̥̅̊ communication sector
Teejay: Supply curve will later be beyond demand
Teejay: Sit down and tink well
ÀSÀKÉ-Ọ̀KÍN: I believe u
Teejay: And stop lamenting on fuel hike for naw
"

I didn't talk because I was not in the mood to argue. I am unemployed and I saved up money when as an undergraduate, my plan was to get a superb camera with my savings. Kept it with my sister, on completing my National Youth Service, I asked my sister to transfer the money into my account. My account is now red and am still jobless. No I didn't spend the money on a shopping spree; my feeding is sorted by my folks. I was very lucky to have been pushed to get an health insurance by my brothers. I have used my saving on searching for job, applying, writing online test, and going for interviews. Sometimes, I spend as much as 4000 in a day. All we hear is policies we hardly see the result. Each policy is an avenue to loot money. I return home after schooling to serve my country then to join hands in making it a better place. Introduction to Business Organization class, it was my first semester, our lecturer was talking about corruption and everyone was singing Nigeria. That was the beginning. We can't deny it, there's corruption everywhere and we don't have an independent system to check that.

  Let me analyze "fuel subsidy removal" to my understanding
Fuel subsidy is a payment made by government to producers, refiners or exporters to enable consumers buy petrol. From the town hall meeting held last week, the Minister of Petroleum thinks building a working refinery is not a profitable investment for any investor. Does she know how many businesses will collapse if we can't produce ourselves? When was the last time she bought petrol in Nigeria from her own pocket? After her tenure she will probably leave the country. Does she know the cost of Garri or any other staple food in Nigeria? Rice is 130, Beans oloyin is 140,drum is 120, plastic of Garri is about 200 this is before the removal of fuel subsidy.
Have you ever asked your parents what for lunch or dinner and they said we don't know. These are parents that used to give their children atleast one meal per day.  Those kids are going to bed hungry.

A breadwinner with a sudden increase in cost of transportation and cost of doing business, let's assume he's a businessman is forced to adjust is spending which might include removing his kids from private school, moving to a small apartment or sharing with another family, there will be reduction quantity and sometimes quality of meal.


In a corporate world, a bank for example. When their cost of running business increases, they will need to reduce some expenditure. The best way to do that will be reducing their workforce and outsourcing some business units. I am unemployed; I have attended various interviews and waiting for a feedback. With the removal of fuel subsidy, a company that plans to employ 20people might have to employ only 10 or less.


You can't feel our pain when you don't know how we live. Before getting my health insurance, I was ill for 3days and we paid 33,000. I was a corper.. There was a day I went to General Hospital with my corper uniform and identification card hoping I will be treated for free or at a token, that day I spent 10,000 (  7000 was for X-ray).  I can rank myself as lower middle class.

I calculated percentage increase in fuel using 160 ( the
highest fuel has been bought is 220 and the lowest 100)

Percentage increase = Pn - Po/Po * 100

= 160-65/65* 100
=146% increase..

Just imagine if everything in Nigeria increase by 146%

Pure water and #5 biscuit will go for about #12.3
Bus from U-turn to Oshodi will become 369 which used to be 150.

U-turn to Agege used to be 50 naira, today I paid #100.


FG fails to realize that cost of fuel doesn't affect only transportation; it affects all aspect of our life. From water, to food, to shelter and security.


If the government was really concerned about the masses. They should have used last year budget to provide controlled transport system, good roads, electricity. In other countries, government dictates how much the staple food should go for. Protect the masses.

The achievements of President Goodluck Jonathan that I have seen so far are burdens to Nigerians.
Change in License plate if Keke NAPEP can be charged 18k for license plate.. How much will they charge commercial vehicles?
I wonder how much he spent on rallying people to support the tenure elongation
My mom needed a form of identification, she applied for her driving license, after paying the money she was told there's an embargo on issuance  of License. That was in October 2011.
Have you ever been to the passport office, if you are not doing express services, you are on your own..Express is from 15k upward.

You had no shoes, Nigeria wasn't as tough as this hence you were able to afford one in due time. The cheapest shoe is #100 and its rubber. There are people who live below #100, will they be able to afford shoes?
Who sponsored your education and how much was it? Even if we calculated time value of money it won't be as expensive as now.

If Nigeria was not corrupt, the petroleum subsidy issue won't be a bad idea. Ghana removed her fuel subsidy; they have constant electricity and good road.

If we had electricity, water , good road, education, proper health care, then you remove fuel subsidy, we will hardly feel it however, we pump our water, we dig our drainage and fix our roads, we fuel our generators because PHCN gives us power at their own will, yet we are the one that pay the tax.

I was a student leader in my school; we did not get paid because leadership should be a selfless service not a public looting activity.

The total of our senators/ house of rep's salaries can fix most of the roads in Nigeria.

What happened to 2011 budget?
Mass transit, we have that in Lagos. Can they return our pump price in Lagos to #65?

Don't tell us you understand our pain because you don't. You will still earn your fat pay at the end of the month.

I think our demands should be
1. No public office holder should be allowed to receive medical treatment outside Nigeria.
2. Public office holders should be paid as level 20 i.e. 20*18,000, no additional allowance.
3.  Education reform? How many foreigners come to Nigeria to school? How many Nigerians travel out to school?
4. Palm oil refinery/ Cocoa house
5. Other agricultural produce.
6. Oil reserve to last 30yrs, what next after 2042?


5 comments:

  1. My sister,u av really done a lot of justice to the recent problem faced by Nigerials.keep it up dearie, the sky is ur limit.

    ReplyDelete
  2. I can see you were really unemployed at that time. Nice piece.....

    ReplyDelete
  3. For me, what Nigeria needs is a divine intervention. Our so-called leaders are insensitive to our plights, no amount of protests/demonstrations can change their ways. They know they can do whatever and get away with it. Nigerians lack the spirit of fighting for what they believe in, people will always back out when they see guns just like we have seen at the occupy nigeria struggle. Right from my days in the university, I knew you can never count on Nigerians when it comes to struggle.
    All we need is to continue with the struggle through the available media and call on the almighty to intervene. God bless Nigeria!!!

    ReplyDelete
    Replies
    1. Yes i was unemployed at the same time, we were all home - strike period..

      We voted or didnt vote for the insensitive so called leader. for every action we take or do not take,someone somewhere will reap..

      Delete