By Tina Amanda
Energy expert Dr. Joseph Obele has cautioned that Nigeria could face bankruptcy if it reverts to the previous pump price of ₦190 per liter for Premium Motor Spirit (PMS) seen before President Tinubu’s administration.
Dr. Obele, a lecturer at Ignatius Ajuru University of Education in Port Harcourt and a stakeholder in the Independent Petroleum Marketers Association (IPMAN), made this assertion while discussing the ten-day “End Bad Governance” hunger protest in Port Harcourt.
He emphasized that reversing the fuel pump price to its previous rate is impractical due to the substantial monthly expenditure the government incurs on fuel importation. Dr. Obele argued that the only viable solution to Nigeria’s fuel-related challenges is to repair and modernize the country’s refineries.
“The inability of the protesters to bend Mr President towards returning the petrol subsidy was a big win to the government and a painful loss to the citizens as that was the core objective of the protest.
“The recent economic hardship and hunger in Nigeria was triggered by Mr President’s removal of the fuel subsidy. That single action has brought about worrisome inflation and outrageous costs of commodities in the market
Also Read: POWA Chairperson of Rivers State: “We are safe harbour for our husbands
Fire destroys property worth millions in Port Harcourt
“The Minister of Finance Wale Edun, has revealed recently that the country spends $600million on fuel importation monthly. Stakeholders have described what the minister called a “high import bill” as a fuel subsidy through the back door.
“The landing cost of PMS at the moment is about #1200 and the said product is selling less than #900, the variation is the high import bill of $600 million as announced by the Minister of Finance which is fuel subsidy in disguise.
“Mr. President standing his ground for the sustainability of fuel subsidy removal was a win for the government as the economy of the nation can not bear further expenses of the landing cost of PMS from the international market.
“Nigeria will go completely broke if we dare return to the old rate of PMS before the administration of President Tinubu. Returning to a subsidy regime will mean zero allocation for federal and state governments as they will have nothing to share as allocation.
“Imagine buying fuel for #1200 per liter from the international market and selling it for the old rate of #190 per liter as it was before the administration of President Tinubu. That means the government will be paying about #1,000 for each liter of fuel consumed in Nigeria as against the amount they are paying now which is about #300 to #400 per liter.
“If the government is lamenting about paying #300 for each liter, just imagine if it goes to #1000 per liter. Returning back to the fuel subsidy regime is practically impossible, but the reduction of price is possible only when Nigerian refineries start production at optimal capacity” He said.
Speaking on the ten-day hunger protest across the nation, the IPMAN stakeholder described it as a win-win situation between the government and protesters.
“The protest ended as a win-win for the government and the protesters. On the contrary, the protest also ended as loose-loose for the government and the protesters
“According to Amnesty International, about 22 persons died during the ten-day hunger protest. The biggest of all the losses was the 22 protesters that died nationwide, death is uncoverable and a vacuum of pain to the respective families.
“It would be inhuman to compare the protesters that died to the destruction of public properties. A big credit to the protesters for compelling Mr President to address the nation despite the fact that the broadcast was a complete deviation from the issues.
“Shutting down of National assembly for the duration of the protest is a win for the protesters. Proceeding with the protest against all the threats by warlords, security agencies, court orders, and counter-protesters is a red alert to those in power.
“It is an indication of the power of a united people against unpleasant policies of the government. Going ahead with the protest despite all the threats will definitely make those in power a second consideration whenever they intend to propose any other policy in the future.
“Those in leadership have always been having the mindset that they can do anything and nothing will happen. The ten-day hunger protest has aborted such thought going forward because they are now aware that Nigerians can react when a policy is anti-people.
“The inability of the counter-protesters to subdue the protesters is a big win to the people and a loss to the government.
“The handling of foreign flags in some parts of the nation during the hunger protest and the call for the military takeover was a strategic win as it makes the protesters unpredictable which is a signal of threat to the government. That act although condemned, was a value to the protest as it makes the protest unpredictable”.
He further stressed that the protest incurred a huge loss to SME business owners.
“The protest was estimated to inflict a daily loss of N400 billion on the economy. The suffocating SMEs and business owners are the most affected as millions of businesses were shut down nationwide during the protest, while some were looted or destroyed.
“Corporate organizations like banks and others were shut down, a day without business activities for a corporate organization is a serious setback that leads to job losses. The total number of unemployed Youths in Nigeria is worrisome and it is obvious that the man hours lost during the protest will add to it”.
Obele urged the government to compensate business owners to enable them to remain in business. While calling on the government to as a matter of urgency enact policies that will put an end to hunger.
“We will recommend that the government should compensate business owners that recorded huge losses during the ten days of protest for them to remain in business.
“The protest might be over but the hunger is not yet over and since hunger was the factor responsible for the protest, then it is expected that Mr President should urgently take action to alleviate the hardship in Nigeria. If a single policy like the removal of fuel subsidy brought hardship, then a policy can also put an end to the hardship.
“Mr President surrounded by numerous advisers, the time for them to focus on strategic thinking that the end the economic hardship is now as delay can be dangerous.
“We don’t need rocket science to predict that another mother-of-all-all protest will come unannounced so soon If the hardship, unemployment, and hunger persist.
“Obviously, the ten days protest will hasten the delayed commencement of production at Nigeria refineries, therefore the protest was a wake-up call to the government which invariably a big win for the protesters and the people of Nigeria”.
He called for the release of innocent citizens arrested during the protest while urging the government to prosecute all the criminals who hijacked the protest to cause mayhem.
“We encourage the government to prosecute the criminals arrested during the protest, we join in calling on Mr President to order for the immediate release of the genuine or innocent protesters that were arrested during the protest.
“The Force Public Relations Officer (FPRO) ACP Olumiyiwa confirmed that 873 protesters were arrested across the country. I’m so convinced that not all among the 873 are criminals, as journalists and many innocent protesters are among the number, hence the call for the release of non-criminals among those arrested”.
The Energy expert maintained that hunger can not be alleviated by sharing foodstuffs with the citizens.
“An approach for the alleviation of hunger is not by sharing rice or money, but to ensure Nigeria Refineries starts production immediately. We are aware that the gradual production or test running process is ongoing at the Port Harcourt refinery, the time for them to start production is now so that fuel price can be selling at less than #400.
“The protest might have been suspended but has not ended. Until the current hunger ends, then the government can be bold to say the protest has ended”.
