Analysts may argue that one name is as good as another, but the Puritans among them may disagree. Due to their adherence to strict moral principles, alongside their opposition to luxury and sensual enjoyment, puritans sometimes see things differently. For some time to come, and perhaps for a long time, Nigerians will be saddled with the shock of perplexity regarding the reasons behind the additional or extra payment they make for the fuel they buy.
The size of the Nigerian lexicon has been increased by two words, which are being used interchangeably but confusingly. Depending on who you hear first, some would say “subsidy,” bewilderingly, while others would say “shortfall,” perplexingly. These two words have suddenly become the new brides of oil economics communication in Nigeria, to the astonishment of the ordinary person on the street. This is certainly confusing.
When the Government announced the removal of the subsidy, the impression given was that there was a financial burden being shouldered by the government regarding the landing and selling costs of fuel, petrol in particular. And the government is now taking its hands off that reckless responsibility—reckless because it is alleged to be a conduit for stimulating and facilitating corruption.
The dictionary says a subsidy is a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low. This made everyone believe, albeit unhappily, that with that responsibility now off the government’s shoulders, the flow of fuel would be faster, even if more expensive.
Just as things began moving forward, with persistent feelings of resentment from the people, the national oil company, now rebranded NNPCL, following the deregulation that led to the removal of the so-called subsidy, announced that indeed they are not paying subsidies anymore, but are only selling at half price, as directed by the government. But they are financing the shortfall. A,a! Shortfall? What on earth is the meaning of shortfall when we were told the government had removed the subsidy?
My dictionary says a shortfall refers to any financial obligation or liability that is greater than the cash on hand required to satisfy that obligation. Wait, I think a penny has dropped here. A confusion is being created between a glass half full and a glass half empty, and the consumer is going to be hurt. We have left the subsidy and arrived at shortfall.
We were told that the major ambition of deregulation is the termination of wastage. Deregulation is the reduction or elimination of government power in an industry. Removing regulations allows businesses to operate more freely and can stimulate the economy. Although critics suggest that deregulation can lead to monopolies and hurt consumers, when done properly, it enhances efficiency in the system.
A number of institutions have undergone significant deregulation in Nigeria, especially the financial and communication industries, with resulting improvements. But it looks like the oil industry, which is the backbone of the country’s economy, is bent on being a bane.
The interchangeable use of the words “subsidy” and “shortfall” is creating a big problem or controversy over what role the government has discarded or maintained. If the government is not paying a subsidy but is shouldering the responsibility of the shortfall, it means the big elephant is still in the room. The ever-growing debt burden has not been done away with.
It is not the intention of this article to discuss the merits or demerits of subsidies or their surname, shortfall, but the article would not shy away from the major features of social contract theory, which says that all humans, Nigerians included, are born with rights: the right to live, the right to make judgments, the right to secure and protect property, and the right to pursue happiness.
In the pursuit of happiness, as conceived by social contract theory, people are encouraged to live together in society according to an agreement that establishes moral and political rules of behavior. The moral side of the agreement includes the public discharge of civic responsibilities, such as the election of responsible people to positions of trust. On the other hand, the elected persons are expected to demonstrate a high sense of political responsibility through the honesty of keeping promises. That way, even if there is a mix-up in the use of words, such as “subsidy” being called “shortfall,” the government would continue to earn the trust of the public because the public is confident in the government’s sincerity of purpose.
Through the Renewed Hope agenda of President Bola Ahmed Tinubu, Nigerians have a positive outlook or expectation, believing that he means well for the country and will take them out of the woods. And time and again, the President has maintained that as a promise made and a promise to be kept.
The President is currently in China on official duty, and while addressing Nigerians living in China on Friday in response to the petrol price hike and other reforms carried out by his administration, he said they are part of an overall strategy to set Nigeria on the path of economic growth.
“Nigeria is going through reforms, and we are taking very bold and unprecedented decisions. For example, you might have been hearing from home in the last few days about fuel prices. What is the critical part to get us there if we cannot take hard decisions to pave the way for a country that is blessed and so talented? The more you want everything free, the more expensive and long-delayed it will be to achieve meaningful development,” said President Tinubu.
Indeed, it is difficult to revive, let alone outshine, a declining economy. The Nigerian economy is in decline. And every effort to fix a declining economy comes with difficult challenges, very difficult ones. According to American football player Trent Shelton, “The right decisions are always the hardest to make. But they must be made to live the life you deserve.”
May Allah make it easy for the President to fulfill his part of the promise and give Nigerians the courage and forbearance to survive the trial, including the trial of accepting shortfall as the surname of subsidy.
