IN NIGERIA, THE SURNAME OF SUBSIDY IS SHORTFALL
By Bala Ibrahim
Analysts may argue that one name is as good as another, but the puritans among the analysts may argue otherwise. Because of their adherence to the strict moral principles, alongside their opposition to luxury and sensual enjoyment, sometimes, the puritans see things differently. For some time to come, and probably a long time to come, Nigerians would be saddled with the shock of perplexity, with regards the reasons behind the additional, or extra payment they make for the fuel they buy.
The size of the Nigerian language lexicon has been increased by two words, which are being used interchangeably, but confusingly. Depending on who you hear first, some would say subsidy, bewilderingly, while others would say shortfall, perplexingly. The two words, have suddenly become the new brides of oil economic communication in Nigeria, to the astonishment of the ordinary man or woman on the street. This is certainly confusing.
When the Government announced the removal of subsidy, the impression given was that, there was a financial burden being shouldered by the government, with regards the landing and selling costs of fuel, petrol in particular. And the government is taking its hands off that reckless responsibility. Reckless because, it is alleged to be a conduit for the stimulation and facilitation of corruption.
The dictionary says, subsidy is a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low. This makes everyone convinced, albeit unhappily, that, with that responsibility off the shoulders of the government now, the flow of fuel would be faster, even if dearer.
Just as things commenced going, with persistent feelings of ill will or resentment from the people, the national oil company, that was rebranded NNPCL, pursuant to the deregulation that lead to the removal of the so called subsidy, came out to tell the world that indeed they are not paying subsidy again, but only selling at half price, as direct by government. But they are financing the short fall. A,a! Short fall? What on earth is the meaning of shortfall, when we were told the government has shouldered-off subsidy?
My dictionary says shortfall refers to any financial obligation or liability, that is greater than the cash on hand required to satisfy that obligation. Wait, I think a penny has dropped here. A confusion is being created between a glass half full and a glass half empty. And the consumer is going to be wounded. We have left subsidy and arrived at shortfall.
The books said to us, that the major ambition of deregulation is the termination of the tenure of wastage. Deregulation is the reduction or elimination of government power in an industry. Removing regulations allows businesses to operate more freely and can stimulate the economy. Although critics suggest that deregulation can lead to monopolies and hurt consumers, but when done properly, it leads to enhanced efficiency in the system.
A number of institutions have undergone a great degree of deregulation in Nigeria, especially the financial and communication industries, with resultant improvements. But it looks like the oil industry, which is the backbone of the country’s economy, is bent on being a bane.
The interchangeable use of the words subsidy and shortfall is inserting a big problem, or controversy on the issue of what role the government has discarded or shouldered- off. If the government is not paying for subsidy but shouldering the responsibility of shallfall, it means the big elephant is still in the room. The ever-growing debt burden has not been done away with.
It is not the intention of this article to discuss the merit or demerit of subsidy, or its surname, shortfall, but the article would not shy away from the major features of the social contract theory, which says that, all Humans, Nigerians inclusive, are born with rights: the right to live, the right to make judgments, the right to secure and protect property, and the right to pursue happiness.
In the pursuit of happiness, as conceived by the social contract theory, people are encouraged to live together in society in accordance with an agreement that establishes moral and political rules of behaviour. The moral side of the agreement includes the public discharge of civic responsibilities, such as the election of responsible people to the positions of trust. On the other hand, the elected persons are expected to demonstrate a high sense of political responsibility, through the honesty of keeping promises. That way, even if there is a mix-up in the use of words, such as subsidy being called shortfall, the government would continue to earn the trust of the public. Because the public is confident in the Government’s sincerity of purpose.
By the Renewed Hope agenda of President Bola Ahmed Tinubu, Nigerians have a positive outlook, or expectation, believing that he means well for the country, and he would take them out of the woods. And time without number, the President has maintained that as a promise made and a promise to be kept.
The President is currently in China on official duty, and while addressing Nigerians living in China on Friday, in response to the petrol price hike and other reforms carried out by his administration, he said, they are part of an overall strategy to set Nigeria on the path of economic growth.
“Nigeria is going through reforms, and we are taking very bold and unprecedented decisions. For example, you might have been hearing from home in the last few days about fuel prices. What is the critical part to get us there if we cannot take hard decisions to pave the way for a country that is blessed and so talented. The more you want everything free, it will become more expensive and long-delayed to achieve meaningful development”-Predident Tinubu.
Indeed it is difficult to revive, talkless of outshining, a declining economy. The Nigerian economy is on the decline. And every effort to fix a declining economy comes with a difficult challenge, very difficult. According to the American football player Trent Shelton, the right decisions are always the hardest to make. But they must be made in order to live the life you deserve.”
May Allah make it easy for the President to fulfil his own part of the promise and give Nigerians the courage and forbearance to survive the trial, including the trial of taking in shortfall, as the surname of subsidy.
IN NIGERIA, THE SURNAME OF SUBSIDY IS SHORTFALL