The palliative palaver between NASS and Nigerian masses

 

Introduction

The implementation of the removal of fuel subsidy by President Bola Tinubu in his inauguration address has had spiral effects on the economy especially the cost of living of average Nigerians. Premium Motor Spirit popularly known as petrol price has increased from less than N200 across the official retail outlets in May 2023 to about N700 as of last week. The price volatility is not unconnected to the pricing of crude oil and the importation of refined petroleum products which is done in dollars. Central Bank of Nigeria has floated the exchange rate with the aim of bridging the exchange rate between the official and parallel market. This CBN decision has led to the plunge of Nigeria’s currency, the Naira.

Invariably, subsidy removal has led to excruciating pains on the citizens. The cost of living has skyrocketed; micro, small and medium enterprises are currently experiencing high cost rather than ease of doing business. With the plunge in the value of the naira, the purchasing power of the currency has been weakened. Commodity prices has simply hit the roof. Nigerian masses are groaning, moaning and agonising as the citizen now experience high cost, rather than high standard of living.

Nigerian labour unions did not stand akimbo, watching, they decided to mobilise workers for strike action and mass protests but the federal government rushed to the National Industrial Court to get an injunction to prevent the unions from embarking on any industrial action.

Short history of palliatives in Nigeria

World Health Organisation says “Palliative care improves the quality of life of patients and that of their families who are facing challenges associated with life-threatening illness, whether physical, psychological, social or spiritual. The quality of life of caregivers improves as well.”  Thus palliative is a medical term. However, in the context in which Nigerian government is using the word, it means some form of relief materials meant to cushion harsh effect of some government policies and programmes. Each time the Federal Government tries to remove fuel subsidy or allows for increase in the pump price of petroleum products, savings from such exercises are purportedly channeled to provide relief materials and improve social amenities. Petroleum Trust Fund was initiated by Gen. Sani Abacha regime as an intervention development agency to bring succor to the people between 1994-1999.

The Subsidy Reinvestment and Empowerment Program known as 'SURE-P is a scheme established by the Federal Government of Nigeria during the Jonathan Administration, to re-investing the Federal Government savings from fuel subsidy removal on critical infrastructure projects and social safety net programmes with direct impact on the citizens of Nigeria. It was established in January 2012 when the Federal Government of Nigeria announced the removal of subsidy on Petroleum Motor Spirit. The immediate past president of Nigeria, Muhammadu Buhari established the National Social Investments Programmes in 2016, to tackle poverty and hunger across the country. Under it, there is the N-Power programme; Conditional Cash Transfer; Homegrown School Feeding Programme and the Government Enterprise and Empowerment Programme. As a relief from the harsh effect of COVID-19 pandemic, some palliatives measures were also taken.

Federal and State Government proposed palliatives

Section 14(2)(b) of the Constitution of the Federal Republic of Nigeria says that security and welfare of citizens are the primary purpose of government. In order to mitigate and ameliorate the sufferings of Nigerian masses, both the federal and state governments are putting forward some relief measures being referred to as palliatives in order to cushion the harsh effects of the recent subsidy removal. One of such measures taken already was the Federal Government legislative approval for the disbursement of $800m World Bank loan meant to be shared initially at N8,000 for 12 million households for six months. Other measures taken was the Federal Government legislative approval for virement of N500bn from the N819bn supplementary budget of 2022 which was initially passed in December 2022 by the 9^th National Assembly. Earlier this month, the two chambers of National Assembly approved both the $800m and the N500bn expeditiously. However, what is causing ruckus now is the sharing formula and the proposed specific palliatives.

For clarity pupose, President of the Senate Godswill Akpabio said N500 billion was for palliatives and other capital expenditure to cushion the effect of the recent subsidy removal. He also said N185, 236,937,815 had been approved for the Ministry of Works and Housing to alleviate the effect of the severe flooding experienced in the country in 2022 on road infrastructure across the six geopolitical zones.  Akpabio said N19,200,000,000 had been approved for the Federal Ministry of Agriculture to ameliorate the massive destruction to farmlands across the country during the severe flooding experienced last year.  The sum of N35 billion was allocated to National Judicial Council, while N10 billion was allocated to the Federal Capital Territory Administration for critical projects The National Assembly also got N70 billion to support the working conditions of new members.

There has been public outcry over the N70bn earmarked for the National Assembly in the approved Supplementary Appropriation Bill 2022. Not only that, The Sun of July 17, 2023 reported thus: “Twenty-four hours after The Sun exclusively reported plans by the two chambers of the National Assembly- the Senate and the House of Representatives to spend N40 billion on Sports Utility Vehicles for members, new facts have emerged. The Sun in the report had revealed plans to purchase 107 Toyota Land Cruiser (2023 model) for senators and 2023 model Toyota Prado for members of the House of Representatives. The planned purchase, it was further reported, would be different from the official vehicles expected to be procured for the four presiding officers of the National Assembly, namely Senate President, Godswill Akpabio; Speaker of the House of Representatives, Tajudeen Abass and Deputy Senate President, Jibrin Barau; and Deputy Speaker, Benjamin Kalu.”

Senator Yemi Adaramodu, spokesperson of the senate has come out to clarify what the N70bn is meant for. In a press statement issued on July 16, 2023, he said no member of the national assembly will receive any money from the N70 billion budgeted to “support their working conditions”. He said the fund is for purchase of furniture and to carry out repairs in lawmakers’ offices.

Socio-Economic Rights and Accountability Project has urged the Senate President, Godswill Akpabio and Speaker of House of Representatives, Mr Tajudeen Abbas “to drop the scandalous plan to spend N40bn on 465 exotic and bulletproof cars for members and principal officials, and N70bn as ‘palliatives’ for new members.” SERAP urged them to “repeal the 2022 Supplementary Appropriation Act to reduce the budget for the National Assembly by N110bn, reflect the current economic realities in the country and address the impact of the removal of fuel subsidy on the over 137 million poor Nigerians. The proposed spending of N110 billion by members of the National Assembly is apparently on top of the N281 billion already provided for the lawmakers in the 2023 National Assembly budget. The proposed spending is also different from the N30.17 billion budgeted for the ‘inauguration expenses’ for new members.” “SERAP is concerned that the budget for the National Assembly may further be increased as members are reportedly demanding an upward review of their salaries and allowances purportedly to offset the impact of the removal of fuel subsidy.”

My take on the issues

I have analysed these issues on several media platforms both electronic and print. One of them was on Politics Nationwide on Radio Nigeria network last Thursday, July 20, 2023. First and foremost, I commend the federal and state governments for thinking out the imperatives of relief materials for Nigerian suffering masses. However, I feel there are better ways to cushion the negative effect of the fuel subsidy removal. I am patently against the conditional cash transfer of N8,000 for 12 million households over six months’ period. I am not unaware that President Tunubu has called for upward review of the amount payable to each of the selected household. However, as rightly pointed out by the National Economic Council at their meeting last Thursday, July 20, the social register has integrity issue.

 I have suggested that rather than singling out 12 million households for cash transfer which can be subjected to abuse, let each of the 768 Local Governments and Six Area Councils of the FCT be given one million dollars each from the $800m World Bank loan. Each of the LGAs should have a Needs Assessment and Implementation Committee that will organise town hall meetings to collate priority areas in the LGAs that needs to be taken care of. It could be repair of schools, roads, Primary Health Centres or provisioning of borehole water for the various communities in the LGA. The committee is to be made up of credible individuals such as traditional leaders, Local Government administrators, religious leaders, town unions and the media. It is my considered view that the ripple effect of this, if there is faithful implementation, will be felt by all and sundry in the LGAs.

While it may not be out of place to carry out repairs on the National Assembly, however, half of the N70bn earmarked for that should be enough to carry out the exercise. N40bn meant for the purchase of exotic cars is rather insensitive given that there is already monitisation policy in the country. Even if there isn’t, no member of the National Assembly can be said to be poor considering what they spend on their elections. Given the austere time we are and the huge debt portfolio of the country, there should be no provision for the purchase of any official car at this point in time. The time we are calls for sacrifice on the part of our political leaders. Significant reduction in the cost of governance is imperative at this point and leaders must lay good example if they do not want to incur the peoples revolt.