Tinubu, Fuel Subsidy and Public Trust on Poverty To begin, I would like to bring the reader's attention to the fact that the first major...

Tinubu, Fuel Subsidy and Public Trust on Poverty

To begin, I would like to bring the reader's attention to the fact that the first major demonstrations against the elimination of oil subsidies took place in January of 2012. To tell you the truth, at that time the vast majority of people did not even know what the term "fuel subsidies" meant, let alone the complexities and complexities inherent in the system.

When the mechanism for the payment of the gasoline subsidy is riddled with bribery, fraud, and deception, those people who understand the meaning and reason for removing the subsidy do not trust or believe the government when it says that, if it removes the subsidy, it will act as if the good and the money are not related.

Because of the politics that are either directly involved in the topic or that are deeply ingrained in their souls, there are many people who are adamantly opposed to the idea that gasoline subsidies should be eliminated in 2012.

I have witnessed a great number of people over the years change their attitude once the journey has begun, and this occurs regardless of the stance that a person will take regarding whether they will favor or not support the withdrawal of gasoline subsidies.

It is important to notice that what became more obvious from January 2012 to June 2023 reveals that the relationship between the government and the citizens is not a strong one. This shows that the relationship between the government and the population is not strong. As a consequence of this, individuals do not view the government as being honest or trustworthy, particularly when it comes to matters pertaining to the national system.

According to a report produced by the Brookings Institute in Washington, District of Columbia, in 2012, it was said that Nigeria paid 8 billion naira in subsidies for petrol.

During that time, there were a few mistakes made in the process of eliminating fuel subsidies. Either the amount of money that was agreed upon was incorrect, some people were taken advantage of, or a significant quantity of money was stolen and misappropriated. As a result of the various government entities that existed at the time, everyone is claiming that the amount of the subsidy payment that they say is correct.

For instance, the Central Bank of Nigeria (CBN) stated that Nigeria spent 1.7 trillion naira on fuel subsidies in 2011, when the demonstrations over fuel subsidies broke out in January of 2021.

Accordingly, the number of people who were actually murdered in 2012 is another matter that has been the subject of debate.

The fact that, between then and now, the amount of subsidies that are withdrawn every year has greatly escalated, to the point where it is beyond the mind of a sane mind and beyond the imagination of a thoughtful person, is what makes the situation even more concerning.

According to figures provided by the NEITI, a newspaper published not too long ago stated that Nigeria had paid a total of 21.7 trillion Naira in gasoline subsidies over the past 18 years.

For instance, in the budget for the year 2023, the government of Nigeria has allotted 3.36 trillion naira to cover the cost of fuel subsidies for a period of six months. That is equivalent to a payment of 540 billion Naira each and every month.

However, the Federal Government has planned to spend 4 trillion Naira on fuel subsidies beginning in 2022. This figure was included in the budget. That year, the health sector received an allotment of only 826.9 billion Naira, which is a disappointingly low amount.

A wail of bewilderment is first heard, followed by the sound of a crushed heart. Despite the fact that we are concerned about the tremendous amount of debt that Nigeria is facing as a result of the enormous budget deficit, the fact of the matter is that fuel subsidy is a significant threat that can bring Nigeria to its knees regardless of whether it is intended or not.

By the year 2022, Nigeria will have used 96.3 percent of the revenue it obtained during the year to satisfy its obligations to its creditors. In the year 2021, spending will consume 83.2% of the nation's income, with 100% of the spending going toward the repayment of debts.

Because of the difficulties the government is having in meeting its obligations to pay for the fuel subsidies, the situation in this country has become even more precarious as of late.

Oil Subsidy: 

In the year 2022, the federal government will have a debt of 8.375 billion euros and 1.25 billion United States dollars; yet, they will still be able to pay for the fuel subsidies. This information was provided by Zainab Ahmed, who served as Minister of Finance in the previous administration.

During their conversation about assuming the debt of 2.2 billion euros, Zainab shared this information with Reuters.

Right around the year 2022, the President of NNPCL, Mele Kyari, stated that Nigeria is depleted, and that the country can no longer continue to pay the fuel subsidies.

Kyari further stated that the Nigerian National Petroleum Corporation (NNPC) currently owes the Federal Government 2.8 trillion naira in unpaid fuel subsidies.

To put it another way, everyone ought to be aware of the fact that there is no possibility of any monetary savings occurring in the event that the subsidy payments are terminated. Only obligations will be settled.

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The loss of gasoline subsidies will be the source of the greatest amount of physical discomfort for those who are economically disadvantaged. This comes at a time when the cost of living has climbed by more than 22.2% and the number of unemployed persons has dramatically increased to 24 percent. She is starving, in addition to being impoverished, and she is poor. There is no electricity on the slope.

The rise in the cost of one liter of gasoline has led to an accompanying rise in the cost of other forms of transportation.

The difficulty facing the Federal Government is obvious. To begin, the current government and its predecessors have been careless in their removal of fuel subsidies from 2012 through May 2023.

The fact of the matter is that all three candidates, Tinubu, Obi, and Atiku, have each indicated that they will withdraw their support if the candidate wins the election and becomes president.

No matter what it is, the critique that Tinubu made even before he sat down is not acceptable.