Another man has started to trek from Yola to Abuja over Gen. Buhari's victory in just concluded polls. He decided on this after observing a prize awarded to the first person who trekked from Lagos state to Abuja in respect of the same victory. If another prize is awarded to this next man, then the masses might equally resolve to trekking in order to withness the handing over in Abuja come May 28th, 2015.
The secret behind the removal of President Goodluck Jonathan by the northerners and south westerners is centred on the teaming effort of the cabals. These cabals defected from different political parties to form a stronger team in All Progressive Congress ( APC) party. The cabals are those few Nigerians who are strongly dealing in downstream business of petroleum sector. They are the people who are involved in export and import of the crude oil after it has been refined in foreign nations. 99% of them are from the north and south west as they record the highest number of chances of ruling this nation after independence. Most of them are the owners of these foreign based refineries .
It is indeed pitiful that Nigerians own over 15 refineries in foreign countries and these refineries have helped those countries in reducing unemployment for their citizens.
What the cabals do is to take our crude oil to their respective refineries and refine it before bringing it to us and this is possible with oil license that was issued to them individually by the government to enhance such operations.
THE REASON WHY THEY REFUSE TO BUILD THOSE REFINERIES IN NIGERIA.
The main reason is that Government might not be sincere to be paying them that extra cost for refining the crude oil if the refineries are sited here in Nigeria. It should be noted that Nigerians buy a litre of fuel below its actual production cost.
Moreover, in 2007 soon after the general elections, the former president Olusegun Obasanjo increased fuel price targeted in- coming government of Late President Umaru Yar' Adua to inherit it. So i called a friend of mind that worked with NNPC then to tell me what is really wrong that led to such increment. He told me that all our refineries cannot refine in good capacity due to the fact that we are buying fuel below its actual production cost. And the Federal Government is not effectively paying for the extra production cost called subsidy cost at regular interval. And also those outside refineries are used by the owners to sabotage these local ones.
THEN WHAT WILL BE THE SOLUTION OF THIS PETROLEUM SAGA?
We have so many oil & gas companies in this country such as Chevron, Texaco, Mobil, Shell, Total/Elf, Agip, Addax, etc running upstream operations only. Let us ask ourselves one question. The question is this " why is it that these companies listed above have a lot of refineries in different parts of the world but they are here to carry out crude oil exploration only?" The reason is that if for example Mobil has a refinery here and sales its fuel at N141 per litre without subsidy, no one will patronize Mobil simply because government is selling her own at N97 per litre and pays N44 per litre as subsidy cost. So this subsidy discourages these oil & gas firms from establishing their refineries in Nigeria and this brings about unemployment.
Let us consider some facts from other nations. In South Africa a litre of petrol is sold for N174 equivalent per litre yet her economy is better than ours. Secondly in England a litre of petrol is sold for N220 per litre equivalent and her economy
is far better than ours too. So many countries are selling it above the production cost by removing subsidy in order to encourage private refineries. Therefore if subsidy is completely removed from our petroleum sector, there would be profit for investors and most of these major oil & gas companies will be attracted to set up their refineries which will subsequently boost employability of the citizenry.
We can recall that after 2011 general elections, President Jonathan attempted to remove subsidy by increasing the pump price to N141 per litre with the following breakdown: cost of refining a litre of crude oil = N129, haulage charge by tankers to filling stations =N5 per litre, cost of sales or service charge at filling station pumps = N5 per litre and security charges, maintenance of oil depot including VAT = N2. These give a total of N141 per litre. In other words we are lacking jobs in an expense of enjoying low cost of petroleum pump prices. It should be thought logically that if the pump price is increased to N141 per litre, a loaf of bread that is sold for N15 can now be sold for N25. As long as employability in the system is active and dynamic, the citizen will not feel the impact of the price increase.
WHAT IS THE WAY FORWARD FOR PETROLEUM PRODUCT IMPACT IN NIGERIA'S ECONOMY?
Mr. President attempted to remove this subsidy in his first tenure which proved abortive; because no Nigerian wants to here of any increase in pump prices of fuel. He has this in his plan for second tenure so as Nigerians can benefit from it before leaving the office and this is the reason that makes him not to renew the licenses of the cabals. The cabals foiled this mission by supporting the All Progressive Congress (APC) party in order to bring an end to his administration with the hope that the in-coming government will renew their licenses considerably. If Mr. President had mentioned the removal of subsidy during his campaign, Nigerians will not be happy to vote for him because nobody wants to here of any pump price increment.
We can also remember that Obasanjo issued 5 men with licenses for setting up of private refineries but with subsidy it was still impossible.
THE BIG QUESTION: WOULD IN- COMING GOVERNMENT RENEW THEIR OIL LICENSES?
If the in-coming government of Muhamadu Buhari renews their licenses it means that the aim of the cabals who greatly assisted in bringing him to power is achieved which will equally boosts their oil activities with unemployment in Nigeria. However it is known that these men have 15 refineries abroad and one can imagine that one refinery can employ thousands of workers directly and indirectly. And an area where a refinery is sited can equally attracts so many oil & gas servicing companies that would also reduce unemployment rate drastically. If one can multiply the analysis above, you can see that we are losing millions of jobs to subsidy. If the next government works with these cabals, this nation might be ruined and finally failed.
WHAT IS THE WAY FORWARD FOR IMPROVEMENT OF NIGERIA'S ECONOMY?
Our economy can be improved by removing subsidy completely in petroleum. This shall encourage the influx of refineries into the country. Secondly, motor tyre manufacturing companies such as Dunlop, Michelin, etc would also be attracted into the nation. It can also assists in electrical energy generation through sufficient gas supplies from refineries. It is pertinent that we want our economy to be improved over night but we forget that every good and protracted thing achievable requires sacrifice. In the bible when God realised that everyone on earth has fallen into sin, God could have just said that any one who does so can only pray for forgiveness and that is all. But not so, Jesus Christ had to come and sacrificed Himself for our sake. God the Father i thank you very much for doing this for us as sinners. So every thing requires time and sacrifice.
GOD IS MERCIFUL AND IS HERE.
THANKS FOR READING.
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