Wednesday, July 23, 2008

Startling revelations...

...coming from the House Committee on Finance investigation into the non-remittance of revenue by government ministries, departments and agencies (MDAs), here. We learned yesterday, for instance, that NNPC pays Niger Delta militants US$6m monthly in protection fees, as well as that nearly half of all revenue gathered by the MDAs has gone for a long walk...

The Federal Government is in a bind about its increasingly huge fuel subsidy: either the subsidy is reduced, allowing prices at the pump to rise and incentivising the refining and marketing of local product, but causing social unrest at the same time as well as adding inflationary pressure on the economy, or the status quo continues. The status quo is becoming increasingly expensive however, and unwittingly supports the underdevelopment of the local content value chain by incentivising crude exports. Which to choose from?


Anonymous,  12:47 pm  

Jeremy, the problem is that most of the senators and reps simply do not have a good grasp of these issues, most of these people though wealthy and powerful, are half-educated or at worst ill-educated. The few who are clever, simply do dot have the political will, and find it easier to pursue self-interests. It surely is not rocket science!

anonymaus,  4:57 pm  

Question is anonymous, why is this situation allowed to continue...? Will the day ever come, that someone will grab the bulls by the horns?

Msmak,  7:08 pm  

How about we follow Cote D'Ivoire's example, cut senators, governors, president's salaries by 50%. Give them option of either doing that or getting all 4 (or is it 5 ) refineries running at 75% capacity or greater...

Jaycee 10:12 pm  

In response to the second anonymous, I believe that change is coming. Yes, many of our Senators and people in the house of reps are uneducated and unaware of how to go about these corrupt states, but change is coming in our generation.

Hey Jeremy, I need some information from you. I know that the Governor of Cross Rivers state had an open blog before (I actually read it at a certain time). But it is no longer open. Do you know any links on how to have an invitation to his blog? Please if you could send me an email concerning this I would be very grateful.

Mr C 12:26 am  

The first thing that struck me about this post is the stance of not negotiating with terrorists. Correct me if I am wrong, the Nigerian government at a point in time stated that position (I remember such statement from the time an expatriate had his daughter (with a Nigerian wife) kidnapped).
If NNPC is classified as a government institution, where is the alignment in governance when they pay? Who exactly are we deceiving?
I don't exactly agree with your position Jeremy (as it tends towards encouraging the reduction in the subsidy). I believe the reason why we have limited refining and marketing of local products (as well as development of the sector) will have to do more with the underlying interests that benefit from the present arrangement.

Nigerians are in survival thresholds zones, presently. Reducing subsidy will only increase our capacity to export processed oil (maybe ease the rising pressures on oil prices. But the cost, inflationary pressures and social unrest, might distort the balance and outweigh the benefit.
The solution should lie somewhere within removing the nation out of threshold point first, before considering the reduction in the subsidy.

But most of our leaders are poorly educated. They would barely understand.

anonymaus,  10:41 am  

Jaycee,thank you for your comment.

However, in response to your comment

"...I believe that change is coming...."

I'm sure previous generations have heard such re-assuring words, but the result was that things got worse. My point of view to your response (quoted above) is seeing is believing. Until then the jury is out so to speak.

Controversial Anon 2:12 pm  

Blame it on the white garment churches, I never have thought highly of them these terrorists training, NNPC loving, Senate friendly, Jim Jones type churches, I say we burn them!

Anyone with me?

Jaycee 2:57 pm  

@ Controversial anon...well u can't really blame it on white-garment churches or Jim Jones type churches alone...there are so many other things to be blamed, take for instance the current level of corruption.

@ anonymous...yes, I admit that you're very right. Seeing is believing. We can't just keep saying we need change, we need to start "seeing" this yeah, let the jury be out for now.

Anonymous,  7:01 pm  

controversial anon, i love the beautiful ekpe

Controversial Anon 9:00 pm  

Thanks Anon 7:01, it's about the only that puts a smile on my face.

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