Showing posts with label Subsidy Withdrawal. Show all posts
Showing posts with label Subsidy Withdrawal. Show all posts

Sunday, January 8, 2012

Authoritarianism

AUTHORITARIANISM
By Biko Agozino

‘Education, and education and education through conscientisation! Our people need to be aware of the power they have as citizens; their inalienable rights as people; the fact that the power enjoyed by the rulers should actually flow from the people. They should stop glamourising and beatifying the bad rulers that make life and living impossible for them and their children. Honestly, there is too much power-worship in this country, a habit I see as part of the Baba ki e pe (Boss, may you live long) syndrome. Just look at it: in Nigeria, the political ruler (and virtually anyone in a position of authority) is treated and venerated, like on with royal and/or priestly/divine powers, appeased with abject genuflections and lavish prostrations. Their birthday ‘felicitations’ take up substantial spaces in the newspapers; their oriki (praisename) is loud, lurid, and ludicrously extravagant...So, in a way, it is Nigerian people that tell their rulers: rule us forever; rule us the way you choose; rule us the way that pleases your whims. Surely, this is one of the terribly negative parts of our traditional culture that is blatantly antithetical to the idea of democracy.  For, the pervasive vestiges of divine kingship which tend to colour our concept of political power actually dis-empowers  the people by erecting their rulers into some kind of sacred, unquestionable Kabiyesi alaye lorun (the unquestionable on who has dominion over heaven and earth). From this apparent verbal hyperbole emerges a state of mind, a political habit, and followership style that makes democracy impossible by belittling the people while inflating the essence of their rulers. All over the world, we know that tyranny never flourishes without the people’s abasement.’ – Niyi Osundare.

Thanks to Niyi Osundare for his usually perceptive finger on the pulse of the nation. What he has identified is a major trouble with Nigeria that even Chinua Achebe overlooked in his classic on the theme – the trouble of authoritarianism. Yet, it is not true that the follow-follow mentality found in monarchical traditions in Nigeria is representative of all Nigerian cultures. We still have Nigerians who proudly say that they know no king and would try to hold anyone in authority accountable. By some kind of coincidence, they happen to be the very ones who are being attacked and massacred in the highly monarchical northern part of the country.

Authoritarianism is the biggest weakness that President Jonathan suffers from. He seems to think that an authoritarian leader is what Nigeria needs because Nigerians love to play the boss from the office to the market, the place of worship, the traffic and to the home. They brutalize their own spouses, children, employees, congregants, neighbours and even strangers because that is how the government treats them. Any Nigerian who preaches peace and non-violence today would be dismissed as weak and stupid because force is the lingua franca of the nation.

The very first act of power play that President Jonathan demonstrated once he finally took over as acting president under Yaradua was to lock out ministers who were late to a federal executive council meeting. Although Nigerian cheered this bossy move, it smacked of a village headmaster flogging pupils for lateness without asking if the ministers had anything worthwhile to contribute to the meeting or if they had any excusable reason for being tardy.

The second executive order from Jonathan was to ground all ministers from going home on holiday during the festive season, until they had worked out a solution to the electricity problem in the country. Again Nigerians cheered this authoritarian populism. But Rilwanu Lukman ignored the order and travelled abroad for a scheduled OPEC meeting without being fired or reprimanded. Travel or no travel, the electricity problem remains unsolved. The third major exhibition of this bigmanism by Jonathan was when he banned the national football teams from international competitions for two years without consulting to be advised that such childish tantrums after embarrassing losses would not be tolerated by FIFA. He had to back down and he did.

Now President Jonathan is getting power drunk absolutely as the executive presidency corrupts him further. He has slapped an unjust taxation on Nigerians without the due process of having the wuluwulu subsidy debated and approved by the legislature but this time he under-estimated the defiance of the long suffering people of Nigeria when it comes to what Gani Fawehinmi called executive lawlessness. He simply announced the withdrawal of a non-existent subsidy and thereby hiked up the prices of services and commodities for impoverished Nigerians.

Luckily for Nigerians, organized labour is ready this time to do battle not just for wages but for the suffering masses. The response of an authoritarian person like Jonathan is equally predictable – he tried to order the workers around by getting an injunction from a kangaroo court to say that the protest slated to intensify on Monday, January 9 2012, is not authorized by the boss. The workers called his bluff and told him that this is not a trade dispute within the jurisdiction of an industrial court that has a tendency to always rule on behalf of the bosses. Bravo to the working people of Nigeria.

This militancy by the workers should serve as a warning to any would-be coup plotters that Nigerians will not stomach another cynical ‘Fellow Nigerians’ broadcast. Instead the protesters should start gathering signatures for the recall of President Jonathan and for the holding of a recall election for all unrepresentative politicians. All legislators and all governors who support this sadistic policy of fleecing the impoverished should also be recalled. Those ministers who threatened to resign if the boss changed his mind and backed away from the abysmal policy should get their wish once their Oga is recalled and defeated democratically.

If Jonathan wishes to meet the legitimate demand of the workers by unleashing a kill-and-go police force on the unarmed civilians, let him be aware that once he is forced from office, he will be tried for murder like Mubarak in Egypt. Besides, authority killing simply sends the wrong message to the citizens that killing one another was a legitimate way to express grievances.

Niyi Osundare is right in pointing out that the reason why authoritarianism is killing our people is because of ignorance and illiteracy. Part of the reason why Ghana has a more democratic culture than Nigeria is because of the National School Movement that Nkrumah established across the country when the colonial administration suspended teachers and students who supported nationalist struggles. The mass protest that is on-going against the wicked policies of the Jonathan administration should include educational programs for teaching basic literacy and political, economic, legal and human rights literacy to the masses even during the street protests.

Finally, the Nigerian Government should immediately take steps to end the terrorization of Nigerian citizens in any part of the country. This cannot be done without addressing what Chinua Achebe identified as the Igbo problem. We cannot go on pretending that the genocide committed against the Igbo would not affect the psyche of the people by cheapening human life. The federal government should therefore set aside at least ten trillion naira as reparations and with unreserved apologies to be given to the Igbo of Nigeria for the past and continuing pogroms that are visited upon them. There should also be a law, as in Germany, to make the denial of the Igbo genocide a crime.

The cosmopolitan Igbo who are the vanguard of nationalism in Nigeria today by the risks they take in venturing to the remotest parts of the country should reciprocate in kind once they receive reparations by sponsoring scholarships and football trophies for schools to compete for in their places of residence. Fleeing back to Igboland is never going to be a lasting solution because the next day, they would return to the places of slaughter in search of opportunities to provide thankless services to their fellow citizens if they do not start killing each other over crumbs in Igboland. Instead of allowing themselves to be isolated and marginalized in Igboland, they should continue to fan out across the whole of Africa with a strategy to invest in goodwill among the people wherever they settle in Africa. That will not prevent murderous envy and jealousy but it may contribute to the further democratization of the whole continent for the benefit of all especially if they are empowered with a well-deserved reparations fund by the government.



Friday, October 14, 2011

The Artful Dodger Subsidy Withdrawal


By Biko Agozino

A colleague asked me to comment on his treatise on the just announced Nigerian policy of removing subsidies from petroleum products. The colleague started by stating that petrol is cheap in Nigeria and that the subsidies served as a form of wealth re-distribution especially given that there does not appear to be any other way of trickling down the oil wealth to the impoverished masses. He did not go the extra step in his logic to recognize that if his premise is right, then removing the subsidies is tantamount to raising taxation on Nigerians by executive fiat and without legislative authority. Not that it will be too difficult to obtain legislative rubber stamping with Ghana Must Go (or Imo Must Go from Abia and vice versa) bags.

I told him that his premise that petrol is cheap will probably be contested in Nigeria because the pump price in most locations is well above the #65.00 per litter that is the official price available only at the few NNPC Depots where you are more likely to run into ‘No Fuel’ cardboard notices. This means that when the government removes a subsidy that was not there in real terms to begin with, then the fuel hawker will put his own jara on top, the okada rider will raise his fares, the garri trader will inch up the cost of eba by factoring in the cost of transportation and the cost of kola at roadblocks, and the landlord will raise rents, schools and hospitals may charge more to cover the costs of gas; hence the inflation my colleague rightly predicted. 

The colleague had good advice for sister Ngozi Okonjo-Iweala to take it easy, because Nigeria is not the US where the World Bank and IMF are located and where the policies of those International Monetary Organizations are never imposed, no matter the level of their fiscal crisis. In the US, for instance, they have welfare policies for the unemployed and the aged but nothing like that exists in Nigeria despite the fact that the US owes tens of trillions of dollars as budget deficits. In the US, citizens are copying the popular struggles in North Africa by organizing the Occupy Wall Street campaign that has spread to cities across the country while in Nigeria, there does not appear to be a popular uprising against even worse income disparities and higher unemployment rates. 

Only the labour organizations in the country are mounting a credible opposition to the proposed subsidy withdrawal. The Nigerian Labour Congress has called on the government to cut  all 'unnecessary spending' as an alternative to the withdrawal of subsidies (This Day, 10/17/11). The NLC has been the leading voice campaigning for a starvation minimum wage of 18,000 per month that state governments are reluctant to implement. The Trade Union Congress has accused the government of corruption for claiming that it will spend #1.2 trillion this year on subsidy while only #240 billion was budgeted for that and the NNPC retaliated by calling organized labour 'enemies of the economy (The Punch, 10/17/11). The SSANU has termed the withdrawal of subsidies a 'declaration of war'. The Academic Staff Union of Universities threatens strikes over the refusal of the government to implement the extension of retirement age to 70 years at a time that the trend in other parts of the world is towards early retirement.

The US reduces gas prices by reducing taxation at the pump, compared to Europe. In addition, Europa and Americana give their corporations hundreds of billions of dollars in bailouts and stimulus packages, farm subsidies and business start-up capital, such as the $500,000,000 given to the solar company, Solyndra, that just folded up after pocketing half a billion (yes, with a b) US dollars from Uncle Santa. 

As Finance Minister under President Olusegun Obasanjo, Dr. Okonjo-Iweala had announced a fifty billion naira credit for cassava farmers, promising that 30% of that would go to female farmers but she was quickly moved to the Ministry of Foreign Affairs and my guess is as good as yours that some big ogas simply chopped the 50 billion naira just like that. Similarly, Comrade President Yaradua ear-marked 200 billion naira to be disbursed as grants to Nigerians but he was quickly incapacitated by illness and his death was never investigated as Wole Soyinka demanded while the 200 billion naira he proposed just vanished without Nigerians asking questions.

In the US, the debate is whether to raise taxation on the richest one percent to the level being paid by the middle class but the Republicans, calling president Obama a class warrior to his delight, have vowed to maintain the Bush era tax cuts for the richest one percent and are seeking to cut welfare and Medicare entitlements for the poor as their preferred strategies for balancing the budget. Across Europe and Asia, huge sums of money are being doled out as corporate welfare while in Britain, welfare and social services have been drastically cut by the current Conservative government. The recent riots in England and in Greece and the current mass protests occupying Wall Street in America are obviously connected with on-going class warfare against the poor by the rich and the powerful as professor Stuart Hall clearly indicated in a recent article in the UK Guardian. Worse policies appear to be heaped on Nigerians and they continue to endure the hardship along with the insecurity that is bred by phantom capitalism.

My colleague outlined the projects on which the government intends to spend the savings from the withdrawn subsidies but none of the plans for the estimated six to ten billion dollars savings has any reference to the suffering people. Rather they propose to use it to patch up roads that they have multiple times budgeted to patch up with vanishing funds, open new refineries that would soon be handed over to private investors at a discount, generate electricity, build infrastructure, all euphemisms for sharing and chopping the savings because all those things they want to start doing are things they had revenues to do before. For instance, President Obasanjo spent $10b or more on power generation while generator tycoons continued to kill whole families with CO2 poisoning; power ko, power ni. 

No American president will wake up and slap a huge tax on the citizens in the guise of subsidy withdrawal without facing a recall election or mass protests even from members of his own party. What President Obama is trying to do is to get Congress to approve additional stimulus of $450b with which to help to create more jobs in America but Republicans in Senate and even two Democratic senators have blocked that move simply because it includes proposals to raise the taxation rates for millionaires back to what it was under President Clinton.

If you ask me for an alternative since President Jonathan has presented Nigerians with a fait accompli, then for the first five years, all the $10b annual savings should be disbursed directly to the Nigerian people for business start-ups, research budgets in the sciences and humanities, scholarships funding, welfare benefits, housing, free medical access and publicly funded education at all levels for all... That will work out at one thousand five hundred billion naira a year and so every corner of the country will be touched by the entrepreneurial and industrial revolution that will be unleashed when such grants are disbursed transparently. Some of the start-ups will fail but those that succeed will make all the differences in job creation and the government will eventually recoup the investment through corporate taxes and income taxes from the employees in addition to value-added taxes from their sales.

All those Egbesu, Area or Bakassi Boys running around looking for someone to kidnap for ransom or the Boko Haram activists looking for something to blow up may just go back to school, or go to any city and open up a small business or return to their villages and set up an agro business with their #1m naira grant and employ five or more desperadoes or team up with other grantees to set up medium sized cooperative businesses. After five years, then let the politicians give Nigerians half the savings and embezzle the rest as they always planned to do and let EFCC chase after them for that. Of course, as the NLC implied, the government could implement such a massive grants programs to Nigerians without imposing draconian taxes in the guise of withdrawing subsidies

Dr. Agozino is a Professor of Sociology and Director of Africana Studies, Virginia Tech. agozino@vt.edu