NIGERIA’S FUEL INCREASE CONSPIRACY

In 2016, crude oil price crashed to $28 per barrel in the international market. In spite of that, Nigeria’s local crude oil price went up astronomically, from N86 to N145 per litre. Usually, excess production of crude oil from countries like Saudi Arabia, China, USA and Iran is expected to crash the oil price. But prices in Nigeria never drop, even when demands are low. We know vandalism by militant groups may affect availability of fuel products and trigger prices during scarcity. But between 2011 and 2014 when oil was sold around $100 per barrel, there were increases in poverty, maternal mortality, unemployment, and environmental challenges. The excess monies realised did not reflect in the life of citizens. It is on record that successive Nigerian governments have amassed about N100 trillion from 58 years of oil exploration. Since the discovery of oil in the 1950s, price of petrol in the country has continued to go up from one administration to the other, starting from 1972 to this present administration. In the past 44 years successive Nigerian government has increased petrol price about 20 times, and only reduced five times.

These successive administrations have routinely introduced palliative measures or commitment of intervention funds to cushion the economic effect of fuel prize increase. Some claimed to have invested several trillions of naira in agriculture, transportation, electricity, employment, roads, potable drinking water, etc. Yet, inadequate mechanism seems to have prevented these investments from ameliorating the sufferings of the people. Instead, monies budgeted for economic benefits are re-looted and unaccounted for. Many business owners have packed up their businesses due to non-availability and unbearable increase of fuel product and absence of electricity.

What has played out over the years is the mismanagement of revenues by public office holders, lack of accountability and transparency on the huge returns derived from the oil sector. Certain individuals in some of these governments have enriched themselves more with huge revenues from the sector, without promoting the growth of key sectors. Sectors like agriculture, electricity, solid mineral, and others that should act as a catalyst for economic growth and beneficial to majority of the people have been abandoned. I verily believe that successive governments excuse to discontinue fuel subsidy is an attempt to stop the endemic corruption and fraudulent activities perpetrated by oil marketers in the petroleum sector. There have been reports of fraudulent supply of petroleum products by oil marketers, amounting to over N30trn in just a few years. Yet, those in authority have failed to prevent the loopholes which create opportunity for looting.