Dithering on SURE promise
Wednsday March 14, 2012
The dithering on the promised provision of palliatives under the Subsidy Reinvestment and Empowerment (SURE) Programme and the recent announcement of a reduction in the amount to be committed to the scheme are raising questions on government’s sincerity in making the palliatives programme a reality.
Under pressure from Nigerians eager to enjoy the promised palliatives, the Federal Government, last week, said only N426 billion will now be used for the programme, and not N1.134 trillion as promised by President Goodluck Jonathan in the heat of the fuel subsidy protests in January.
The new figure, which is N708 billion short of the promised N1.134 trillion, is said to be a fallout of the government’s inability to fully deregulate the downstream sector of the petroleum industry because of strong opposition by Nigerians.
Beyond the steep slide in the amount to be committed to the SURE scheme, however, is the half-heartedness of government’s commitment to a quick implementation of the programme. The president, at a recent forum, had initially said the programme would no longer be implemented. Following widespread criticism of that stance, the government said it would support purchase of mass transit buses for the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).
Since then, nothing has been heard or seen on the palliatives so eloquently promised the people by President Jonathan. Among the benefits that the government promised the people would enjoy on account of fuel subsidy removal are improved services in hospitals, good roads, resuscitation of the railways, employment generation and improved electricity supply. The terms of reference for SURE, itself, include the provision of some of these palliatives. Two months after, there is nothing in sight to suggest that government is on the brink of providing these palliatives.
There is nothing to show that government is going to keep faith with the people on these promises. While Nigerians may not expect 100 percent implementation of the rash of promises on subsidy removal palliatives, it is expected that some of them should be done to demonstrate government’s commitment to the fulfillment of its promises. The savings from reduction of subsidy on oil should have been seen by now to have translated to concrete action in some areas to ease the pains of the people.
But so far, nothing tangible appears to have been done on the promise. This is another example of a policy flip-flop. If Nigerians are not watchful, nothing will be done under the SURE programme.
Beyond the mathematics of the total sum to be re-invested under SURE, therefore, is the question of whether whatever amount provided will be used judiciously. It is necessary to ensure prudence in the management of the oil subsidy reduction accruals. Whatever percentage of the amount is spent should be glaring to all Nigerians.
We urge the government to eschew rhetoric and do something visible with the fuel subsidy reduction funds.
It is worrisome, also, that the government has not demonstrated commitment to tackling the fraud in the oil sector, especially in the management of the oil subsidy funds. Revelations from the sector in recent times indicate that there is corruption in the pricing of fuel. Both the price at which the product is bought and the amount at which it is sold in the fuel stations are brazenly manipulated to the advantage of a cartel in the sector, and the disadvantage of Nigerian consumers. There is a huge discrepancy of about 15 million litres in the volume of fuel consumed in the country and the amount on which subsidy is paid. There are also sharp practices in the disbursal of subsidy funds. The government is yet to do anything concrete on this. Nobody has been brought to justice on these serious issues. The government has so far been glossing over the matter.
Let the fraud in the sector be stopped. Let major oil marketers and buyers of Nigerian crude oil build refineries in the country. Then, Nigeria will be subsidising oil production and not importation. Government should do every thing that is necessary to cushion the effect of higher oil prices and ultimately ensure a reduction in oil price in line with what is obtainable in other oil-producing countries.
Nigerians are waiting for action from government on SURE. Even without the huge sums gained from reduction of fuel subsidy, the palliatives promised by the government are part of its responsibility and social contract with Nigerians. It should not renege on them.
