How to breakup Nigeria... HTBUN

How To Break Up Nigeria (HTBUN)

How to break up Nigeria (HTBUN)
by Don Pedro
In light of the recent tragedy in Northern Nigeria during the April 2011 elections, especially after the announcement of the presidential election results and the deaths of many citizen including 10 National Youth Service Corps (NYSC), there had been call from some quarters of the country for a review or total break up of the NYSC programme.

At this moment, almost everyone is upset at the spate of the avoidable deaths of these youth corps members in the northern areas of the country. For one, the participation of these young men at a critical point when we needed a body that is neither partisan nor sympathizer to any of the election participants was a ground breaking achievement which was evidence in the election results.

But should the NYSC be scrap because of this one flaw?

Should the NYSC be scrap because of security challenge?

What was the aim of the programme and what are we putting in place as substitute?
The NYSC was instituted in 1973, after the Nigerian Civil War, for the purpose of integration of aggrieved tribes,
To foster cooperation among the many ethnic tribes,
To build a united Nigeria through the future leaders' understanding of their neigbhouring tribes across the country.

So, in an Igala family (Kogi State) of five (5), the 1st served in Niger-Delta, the 2nd served in Maiduguri, the 3rd served in Ogbomosho, the 4th in Sokoto, the 5th in Enugu. They would have relate their experience among themselves, the people, their culture, way of life etc so that when one of them come across a Yoruba man, he will be able to get along fine with him.

So, should we scrap the NYSC? If 'yes', then, what means is in place to build a united Nigeria?
If it is true that the NYSC challenge is a security challenge then, the argument should not be 'scrapping the scheme' but holding the security outfit responsible for lapses in their failure to perform their duties.\

Where were the security operatives during the mayhem? Or were the CITIZEN too powerful for the security men, with guns, to handle?

Were the security operatives part of the 'people' that perpetuated these act of acrimony?

Who says the security men were not paid to look the other way for a while? Or didn’t we all read Ukeoma AikFavour's last blog on facebook?

Who says those behind the sponsoring of these act are not the same calling for the scrapping of the NYSC in other to create a distraction from what we should be investigating?

Are we new in Nigeria, can an ordinary citizen, even a tout, pick up an axe because Jonathan had cheated Buhari and others will follow? Or is it not one 'man' with money to throw around who usually organise his 'boys' to go and 'deal' with a section of the town because they disturbed then from manipulating the result?
Are we looking at the right places for answers?

Many, like Alex Akinyele, had voiced their opinion that Corp members should be posted within their region of origin.

In a country, like Nigeria, where we fight regionalism everyday, and what then are we trying to promote?
As put forward by the Senate spokesman, Ike Ekweremadu that the NYSC programme should be delete from the section of the Constitution and placing it as an Act of Parliament with a revamped (overhaul) structure.

Doing so will only guarantee one thing, a scheme with a paper weight that can be kick around anyhow by anyone when he or she feels like.

Like electricity that we rather go for importation of generator,
Like car plants that we close down for Japan mades,
Like those trains with their beautiful melody that is just a myth today,
Like Ajaokuta steel plant that exist only by name, another challenge look us in the eyes in form of this NYSC incident and the only solution we can come up with is to scrap it.

Let us think before we act, not act before we think.
When Nigeria experienced some terrible air disasters, did we abandon travelling by air? No! Recapitalization came, some planes were ban which resulted in many operators buying new ones and today, what do we have?

Restricting corps members to be serving in their region of origin will do the country no good than brewing a more complex problem that may consume us all - REGIONALISM
Scrapping the scheme will create a vacuum. A vacuum of national service, patriotism, fatherland sacrifice which is very essential in a leader.

So, let us get it underway, let us do away with one scheme, NYSC, and bring about another How To Break Up Nigeria (HTBUN)

Don Abiodun Odedeyi (Don Pedro)

Fuel Subsidy... To be or not by Don Abiodun Odedeyi

Subsidy or no subsidy has been an issue that had tore the leadership of Nigeria to shreds having witness the citizen right fighter, the NLC split into groups with some associating themselves to the removal of subsidy while the other remains adamant and former NLC president, Adam Oshiomole booed during the Lagos Town Hall meeting between government officials and stakeholders.

The case of economy development cannot be tactically manipulated by share emotion on what should be or not, it is a decision of what is needed in other to achieve an economic viable Nigeria.

CBN Governor, Sanusi Lamido Sanusi, in his explanation on the need for removal of fuel subsidy said 30% of Nigeria total budget services fuel subsidy to the tune of about N1.6 trillion annually while total federal government recoup still need an additional loan of N200 billion to complete the annual subsidy.

Indeed, fuel subsidy simply empowers foreign manpower in term of continuous importation of foreign goods to our market that not only consumes government savings but also local production.

Looking at these points (among others), it is a matter of time before the economy to collapse under the weight of debt, rotten infrastructure, undeveloped economy etc.

Already, one of the issue facing the country presently is not about the weight of fuel subsidy, it is about the share amount of capital project which had been left undone for years. The present government thus tackling these issues headlong at the same time requires not just gross capital but colossal funding.

Fallout of the inadequate of fund for project presently present itself in the image of Lekki-Epe toll gate resulting from the PPP agreement between the Lagos state government and the private sector. Lack of fund had brought in another dimension which is alien to many Nigerians.

Why subsidy?

Subsidy in different sector from the government is a way government intervening in the economy to favor it sovereign.

Subsidy is applicable to every sectors of the government and may necessarily do not mean government pump funds into these sector. Again, it should be noted that the impending collapse of the Nigerian economy is just a case of demand more than supply and nothing more. What are these demands and how can we address the shortfall?

Dependency theorists stressed how markets favored industrialized countries, which received raw materials cheaply from the developing world. In addition, industrialized countries owned the technology that developing countries needed and had the economic power to admit exports from developing countries.

According to the dependency theorists, developing countries could only grow behind protective trade barriers that kept out exports from the industrialized world. To this, we can agree that removal of fuel subsidy is a right decision but not enough, if the shift in dependency on developed country is to be removed, there is need to effect from more demand to less demand, for removal of fuel subsidy - refineries should be working.

Removal of fuel subsidy will not only increased inflation but also the prices of all the important manufactures into which petroleum enters, among them chemical fertilizers, plastics, synthetic fibers, pharmaceutical products among others. These product, remember, affects the agricultural sector, manufacturing sector textile sector in particular.

While subsidy removal had a positive turn around in some countries who had toil the part outlined by the federal government, need cushion effect which act as roll-back mechanism, in the case of Nigeria, is yet to be in place.

In the 1990s, subsidies to Berlin by the East and West German government ended, forcing the city to make extensive cuts in its operating budget. Public service jobs were trimmed, and the cost of social services increased. This led to angry protest and general strike. It also affects students and lecturers as school fees increases while there was severe pay cut for the former. Today, all these are history as Germany is among the leading financial bailout country today for many Europeans countries in economy turmoil.

 that dollar imports would be restricted drastically and that American securities held by the Dutch would be requisitioned. The Labor Party in the Netherlands, to which Lieftinck belonged, aimed at expanding state intervention, but the finance minister took steps to cut governmental employees to a minimum and to reduce governmental operations and expenditures. In addition, he advocated the expansion and modernization of the productive apparatus of the country, thereby increasing industrial and agricultural exports. Opposition developed to the planned economy of the government, particularly to the governmental import and export bureaus, and to the continuation of rationing. Consideration was given to a reduction of the tax burden on business by allowing business organizations to depreciate their plant and equipment on a replacement basis, rather than on the basis of the original purchase price.

These sectors in particular had been subsidized (zero import duties on equipments imported in agricultural sector). Total removal of fuel subsidy invariably means a tornado effect where increased in price on chemical fertilizers kills the needed advantages the agricultural sector would have benefit from zero import duties.

These higher prices also reduce purchasing power in much the same manner as would a severe new tax as a result of general increase in prices of commodities. Reduced purchasing power in turn depresses sales of consumer items, resulting in layoffs of factory and sales personnel. The entire procedure has a spiraling effect in all sectors of the economy.

A good example of the above analysis is the textile industry whose fuel was deregulated without adequate electricity supply. With Fmr President, Olusegun Obasanjo’s increment on import duties (imported textile materials), blacklisting of textile importation from other countries, the textile industry still collapsed.

Much as this article tends to focus on the technical analysis on the removal of fuel subsidy, it should be noted that government current expenditure is taking toll on the national economy itself. Just months ago, Sanusi Lamido Sanusi engaged the National Assembly on war of words on reduction of the expenses after he accused then NA of responsible for 25% spending of the total budget.

Effort geared at reducing pressure on foreign exchange due it huge demand should be looked into. If the forces of stress on foreign exchange result in cumulative effects on the price of good traded, especially, imported petroleum product, cost of importation will lower if the dollar exchange rate to naira reduces.

Faced with economy hardship caused by the WWII, Netherlands Finance Minister Pieter Lieftinck announced early in 1948 strenuous efforts to move toward a free internal economy. Subsidies were halved, and at the same time prices on coal, textiles, and many food items were adjusted upward. The government estimated that these measures increased the cost of living for the working classes by about 2 per cent, which would be offset by corresponding wage increases. This action would not result in bringing Dutch prices in line with prices in Belgium and Luxembourg nor remove the threat to the latter countries that their commodities would be drained into the Netherlands when all the barriers among the economies of the Benelux countries were removed

The move, though unpopular at that time there was a deficit was reduced by over half for the year. This was considered a remarkable achievement and was accomplished primarily by the reduction of expenditures in all departments. 

If this is anything to go by, 30% on fuel subsidy, 25% on NA, and some other subsidy being planned for other sector in government preparation on shifting subsidy from capital to manufacturing, it is impediment for government to cost it own cost. Need i say that the N1billion food expenses tag for the country's 1st citizen is a far cry to what the government is preaching to the people? If really, we want a change in Nigeria that involve sacrifice, the leaders should be a good example for us to follow.