The Evils of Subsidy Removal

Throwback to #occupyNigeria and how a good percentage of Nigerians received the then president, Goodluck Ebele Jonathan's decision to remove the subsidy on PMS (petrol) with a nationwide protest. It has been over a decade since he made the announcement and subsequently reversed the decision after the public outcry. Unfortunately, the same individuals that championed the movement have seemingly gone back to their vomit to not only remove subsidy but do that without any remorse. 

President Bola Ahmed Tinubu's "let the poor breathe" statement is looking like a complete irony at the moment as the one-month-old dispensation has hit the ground running, unfortunately, with the wrong sneakers.

Studies have revealed that countries across the globe implement subsidy to ease the affairs of their people. The government of the UK for instance, gave each household £65 (don't convert to naira) to help with energy costs during the winter and this is just one of several. Other first world countries, such as the US, have also subsidized different sectors, including agriculture, oil and gas, and a host of others. 

The question begging for answers is "why is the IMF and other such organizations calling for the removal of subsidies as well as other similar relief programs by the government while increasing taxes?" Have you wondered why the likes of the UK don't get such pressures? Fact remains that the world is in a competition and countries compete against one another. Why would an African Economic Summit be held in Europe? Makes sense? Therefore, you can't expect an oyinbo to suggest policies that will favor you as Nigeria to the detriment of the oyinbo. Unfortunately, African countries have little or no say in determining "suggestions" from the World Bank or IMF. How then do we expect such policies to be in our favor? Flashback to the days of Structural Adjustment Program (SAP) and the multi-generational effects it has on Nigeria.

What Nigeria and by extension, Africa needs, are homegrown policies developed by patriots and not some imported ideas that don't necessarily fit into our system.

Subsidy in itself is never a problem. The issue that should be tackled is the "corruption" in subsidy payment. If the BAT government do not want to suffocate the poor and would "let the poor breathe," it should tackle the thieves stealing subsidy money, retrieve the loot, and make Nigeria a place where Nigerians want to live in.

But what do I even know sef.

#AdeyinkaWrites