Page 1 of 1

Hardship to Follow Arbtirary Oil Subsidy Removal in Nigeria

PostPosted: Wed Jan 04, 2012 9:25 pm
by Richard Akindele
I am one for advancement in technology, infrastructure, and people's general welfare. As much as I would love to believe that all savings from this fuel subsidy removal would go directly toward making such changes, I really doubt it would happen.

From my research, Nigeria's net oil export is 2.2 million barrels per day. At $100 a barrel, income comes to $220 million daily. My guess is that even after all overheads have been accounted for, the nation should still have over $120 million left. In other words, we're raking in close to $1 billion dollars each week, from a commodity that is always in demand, needs no advertising, and that lately has been very expensive on the global market.

Since we see no change in Nigeria in the things that the Federal government presides over, what then is the $1 Billion a week being spent on?

My guess is that the money is being sunk into the high salaries of a tiny minority of high ranking officials.

A Nigerian senator earns more in Salary than Barack Obama and David Cameron.

From all indications, Nigerian Senators are the highest paid in the world.

Items Senator (N) Representative(N)
Basic salary/Regular allowances 11,145,200 9,926,062
Furniture 3,039,600 2,744,454
Motor Vehicle Loan 5,066,000 4,963,031
Duty Tour Allowance per day 23,000 21,000
Severance Gratuity 6,079,200 5,955,637
Estacodes $600 $550

On top of these high salaries, here are allowances that these officials get as a percentage of their salary...

Hardship Allowance @ 50%
Constituency allowance @ 200%
Newspaper allowance @ 50%
Wardrobe allowance @ 25%
Recess Allowance @ 10%
Accommodation @ 200%
Utilities @ 30%
Domestic Staff @ 75%
Entertainment @ 30%
Personal Assistance @ 25%
Vehicle Maintenance Allowance @ 75%
Leave Allowance @10%

Does this just not make your blood boil! Can you believe there is such a thing as 'Hardship Allowance'? What hardship exactly is somebody who earns over N11 million/year suffering? Then 200% of their salary for accommodation? Wow!

What functions do these legislators perform exactly, to warrant this level of compensation? But most importantly, why are already poor Nigerians being asked to sacrifice by living in deeper destitution, while the people who get all the money won't be affected one bit?

It is indeed a travesty, that a president, who is supposed to hold a Doctorate degree could be so callous toward starving citizens. This oil subsidy debacle is a snap judgement that never should have been made. This is tyrany plain and simple.

If Dr. Jonathan was serious about reform, he should have considered a top-down approach, where the massive salaries of top officials are trimmed. Where all the waste in the system is identified and corrected. Then and only then would it be justified to reduce the oil subsidy by say 10-20%.

Poor countries like Ghana, Togo, South Africa, etc, who have no oil, take better care of their citizens than Nigeria does. Electricity is stable. Water runs. Crime is low. Unemployment rate is lower. International ports work. I could go on and on.

Perhaps the biggest slap in the face in all this, is that we all know that none of the oil subsidy savings would go toward building or improving anything as they claim it would. All of it would end up in the hands of the same corrupt officials who are already living high on the hog. Meanwhile, the majority of the poor who are already stretched thin, now have to face an abrupt doubling of their cost of living.

With this insane subsidy removal, Nigerians would now pay the same amount for oil as Americans do. If Nigerians were at a breaking point before, now expect them to snap, since they can no longer afford to feed themselves, let alone pay rent, transportation, healthcare, education, etc.

President Goodluck Ebele Azikiwe Jonathan just sealed his fate as one of Nigeria's worst presidents ever.

PostPosted: Sat Jan 14, 2012 2:17 pm
by Richard Akindele

Nigerian Senate president earns $300,000/month.

British prime minister earns $200,000/year.

The above is not a typo. A Nigerian minister earns more per month, than the US/UK presidents earn a year!

So when the government cries about not having any money to run the country, it is invariably saying there is not enough money to pay ministers, and pay the president.

PostPosted: Sat Jan 14, 2012 2:39 pm
by Richard Akindele

Feeding allowance for the president is $7 million a year. That is just money for food for Aso Rock.

PostPosted: Tue Jan 17, 2012 11:55 pm
by Richard Akindele

The following audiio is an engaing discussion about corruption and power abuse by the Nigerian government.

It's in Hausa language, but if I get some spare time, I may translate into English. All the same it's great for our Hausa speakers.

I recorded the discussion from Radio Deutsche Welle.

If anybody can help translate into Ibgo and Yoruba, that would be appreciated.