Temitope Ajayi
A video of former President Olusegun Obasanjo’s interview with News Central Television has been trending on social media platforms for the past week. In the interview, the former President, in a veiled reference to the current administration, said Nigeria has a President who came into office without a plan. Yet, the same ‘planless’ president is implementing a bold economic reform programme that Obasanjo initiated and abandoned mid-way.
This intervention is essentially about a tale of two leaders and how they both handled fuel subsidy removal. Fuel subsidy removal is a very touchy issue every president of Nigeria has avoided since 1973. It is disruptive in nature and has the potential to precipitate a pushback that may lead to civil unrest. This serious matter can make a difference between a bold and courageous leader and one that is pretentious and hesitant.
It is a fact of history that one of the things former President Obasanjo set out to do was complete deregulation of the downstream oil industry. But hard as he tried, he failed to actualise it. Obasanjo faced so much opposition from organised labour and civil society groups that he abandoned a good policy. This policy could have led to massive economic gains for the country.
All he could muster the courage to do was to raise the pump price four times during his two-term tenure. Twenty years after Obasanjo failed to implement complete downstream deregulation, President Bola Tinubu had the courage of his conviction to implement the policy. Tinubu aimed to redirect the economy and ensure efficiency in the management of public finance.
Despite his foibles and messianic complex, former President Obasanjo is no doubt a remarkable leader. His administration opened the economy and implemented essential reforms that his immediate successor should have continued with. What most critics find offensive about the former president is how he sees himself as the only saviour God created for Nigeria. As far as he is concerned, no other leader before and after him has been good enough.
For context and clarity, it is essential to recall the former president’s position on deregulating the downstream oil sector when he was in charge. In a national broadcast on October 8, 2003, President Obasanjo expressed his frustration and anger at the Nigeria Labour Congress for its opposition to deregulation.
He accused labour leaders of sedition, stating: “As you are aware, my government has embarked on fundamental reforms designed to depart from the waste and unproductive exercises of the past and leave lasting legacies for the prosperity and improved welfare of all Nigerians.”
He continued, “Since 1999, we have gradually but steadily embarked on the programme of liberalisation and deregulation of the Nigerian economy to promote efficiency and effectiveness of service delivery.” Most Nigerians, and certainly all organised key stakeholders in the Nigerian economy, including the Nigeria Labour Congress, had endorsed the deregulation programme of government.
“It is a fitting symbol of our administration’s commitment to the welfare of workers that the government provided 80 buses to the NLC in 2002,” he added. “The transliner buses were delivered to the Congress for management without government interference.” Obasanjo noted, “Every step taken to deregulate the downstream oil sector has been dogged by, sometimes, irresponsible opposition by the Labour Congress.”
He explained that the result has been too little progress: “We have tolerated all of these in the interest of promoting popular dialogue and informed dissent.” He asserted, “Let me inform Nigerians that when government first came up with the deregulation programme, it was endorsed by the NLC and other stakeholders.”
In fact, Obasanjo said, “The NLC had requested that we call it a ‘liberalisation’ programme.” He described the issue as more a matter of label than of substance. “If we had been successful in implementing the deregulation or liberalisation of the downstream oil sector as earlier agreed by all stakeholders, including labour, we would not have been worrying about the periodic and unsatisfactory price-fixing.”
He lamented that the failure to fully deregulate or liberalise has cost Nigerians billions of naira. These funds are currently wasted on millions of man-hours in queues at petrol stations. “The tens of billions of naira currently being lost could have increased capital spending in education, agriculture, and security,” he stated.
Obasanjo also remarked, “Realising that the investment of over $400 million in the last six years had not improved the performance of the refineries significantly, the government decided it was unwise to put additional money into the repair of the Kaduna and Port Harcourt refineries before privatising them.”
He pointed out that “contracts for the Turn Around Maintenance for the Kaduna and Port Harcourt refineries were awarded with 50% of the cost paid upfront before the advent of this administration.” He added, “Two of the three refinery locations in the country today were built by my administration as military head of state.”
Obasanjo expressed, “If only 30% of these firms had established private refineries, thousands of jobs would have been created, and Nigeria could have exported refined oil products.” He concluded that “the NLC’s approach has been counter-productive and inflicted more pains on Nigerian workers.”
He stated, “Each time there is a small increase in pump price, transporters have used the opportunity to jerk up transportation costs.” Obasanjo argued, “A once-and-for-all total deregulation would have meant a once-and-for-all increase in transport costs.” He believed it would resolve the problem of availability and reduce prices for those outside major cities.
Interestingly, excerpts from the 2003 national broadcast by President Obasanjo present a contrast between the former leader and President Tinubu. They showcase two leadership visions. One leader saw the need to fight for the country’s long-term sustainability but chickened out because he lacked the courage to upset the status quo. Two decades later, another leader recognized the damage caused by failure to make the right economic decision.
President Tinubu decided to correct it to avert a looming calamity. While former President Obasanjo left the most challenging task of his presidency undone, President Tinubu tackled what has become an existential threat from his first day in office. He has remained focused on the bigger picture.
President Tinubu understands the burden of leadership and responsibility he bears on behalf of Nigerians. He knew from day one that he would have to make right but unpopular decisions. These decisions would ultimately serve the best interest of the country and its people.
It is not correct to say this president came to office without a plan. President Tinubu came into office with a clear plan titled “Renewed Hope 2023: Action Plan for a Better Nigeria.” This was a well-thought-out programme with which he canvassed for votes across the country and was elected by the people.
In the past 17 months, he has remained faithful to the document as he implements the distilled eight-point agenda. At the heart of President Tinubu’s economic revitalisation is gas development and expansion of gas pipeline infrastructure. This is aimed at enabling Nigeria to compete with Russia in European markets.
In fairness to him, former President Obasanjo lamented that he did not pay adequate attention to gas during his term. Expanding the pool of available talents and human capital is part of Tinubu’s plans. He aims to grant loans to young Nigerians for tertiary or vocational education.
The consumer credit initiative will promote local production and stimulate the economy. To the President’s credit, these important policy initiatives are being implemented through NELFUND and Nigerian Consumer Credit Corporation (CrediCorp). If there is one President of Nigeria who came prepared and armed with a clear-cut plan to reposition the country across sectors for better outcomes, it is undoubtedly President Bola Ahmed Tinubu.
Ajayi is Senior Special Assistant to President Tinubu on Media and Publicity.
