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Published On: Sun, Jan 1st, 2012

IMF Forces African Nations to Remove Fuel Subsidies

January, 1, 2012

Christine Lagarde, IMF boss {Alt-Market}

NewsRescue- Joining Guinea, Cameroon, Ghana and Chad, Nigeria on New Years day removed fuel subsidies in accordance with an order from the IMF (International Monetary Fund). This created a jump in the price of automobile fuel from about 65 Naira per liter to 140Naira per liter overnight, Sunday. This brings fuel/gas prices in Nigeria to about the same price it is in the US, though lower than many European nations.

Nigerians used to pay about $1.51 / gallon, the European average is about $5-6.00/gallon, while the US average is $3-3.70/gallon. While other oil producing nations, like Venezuela, Kuwait and Saudi Arabia are about $0.12, $0.78 and $0.91 respectively. This hike in fuel prices was compelled on African Nations by the IMF due to supposedly rising global oil prices and the Europe recession.

Trying to invoke an “African Spring?”

The Managing Director of the International Monetary Fund (IMF), Christine Lagarde visited Nigeria to meet with the President, Goodluck Johnathan in December 2011 to drive home this directive. This move invites frustration on African nations which comparatively escaped the “Greed” Wall street recession that has been marauding and collapsing European and Middle Eastern economies, with resulting hardship, riots and Government change, including the popular “occupy” riots still plaguing the United States and other European nations, the August 2011 “Robin-hood” riots of the UK,  the collapse of Greece economy, that likewise affected the Middle East with the “Arab Spring” revolutions. This IMF induced chaos in Africa is like the IMF induced riots in 1997 in Indonesia during the Asian financial crisis.

Quoting the BBC- “The IMF has long urged Nigeria’s government to remove the subsidy, which costs a reported $8bn (£5.2bn) a year .” This foreign/western objective was finally pulled through by the administration of Jonathan and Ngozi Iweala, Nigeria’s minister of Finance, now popularly referred to by Nigerians as Ngozi Wahala(trouble), who implore on her to kindly return to the World Bank, her demonstrable primary allegiance.

Related: NewsRescue-How The IMF-World Bank and Structural Adjustment Program(SAP) Destroyed Africa

According to AllAfrica: The meeting with Goodluck Johnathan was not just coincidental. Analysts believe it was predetermined. The IMF has been canvassing for the removal of subsidy among African countries. View Meeting images provided by IMF

This pronouncement has seen governments in Nigeria, Guinea, Cameroon, Chad and Ghana moving to cut state subsidies on fuel.

Yesterday, Ghana cut subsidy and it was learned that the development was due to pressure from the IMF to do so because of rise in the price of crude.

The Chief Executive Officer of Ghana’s National Petroleum Authority (NPA), Alex Mould said the cumulative effect of the rise in crude oil prices this year and the about 5.7 percent depreciation of the cedi meant a 25 percent increase in cedi terms in the cost of procuring crude oil and petroleum products since January.

For instance, the IMF has urged countries across West and Central Africa to cut fuel subsidies, which they say are not effective in directly aiding the poor, but do promote corruption and smuggling.

Related: NewsRescue- 01/06/2012- Nigeria Targeted For Destruction: Gordon Duff, US

The price change will see the cost of Liquefied Petroleum Gas (LPG) increase by 30 percent while petrol and diesel will go up 15 percent at pumps in Ghana.

Mould said Ghana has spent about 450 million cedis on fuel subsidies in 2011.

Ghana’s Minister for Finance Kwabena Duffour said the removal of subsidies would have a positive impact on Ghana’s economy.

Duffour said: “Subsidising fuel is not sustainable. It is the right thing to do so we can sustain our fiscal consolidation.”

This is the same music that the protagonists of subsidy removal in Nigeria, like the Coordinating Minister of Economy and Minister of Finance, Ngozi Okonjo-Iweala; the Minister of Petroleum, Diezani Alison-Madueke and the Governor of Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi are singing.

While Sanusi insisted that the economy would breakdown if the subsidy is not removed, Ngozi said Nigerians would be better off without subsidy.

Ghana’s subsidy removal yesterday confirmed people’s speculations that Western powers are behind the move to stop subsidy. Development in Ghana has also gone to confirm that the Nigerian government would boycott the public outcry on subsidy removal and go ahead to remove.

There is no provision for subsidy in the 2012 budget proposal submitted by President Goodluck Jonathan.

The Nigerian National Petroleum Corporation (NNPC) has said that from next year they would not pay for subsidy because there is no provision for it in the budget.

The development also negates the IMF’s saying that it does not tailor policies for any country to follow, but only provide technical supports.

But during the visit of Lagarde to Nigeria, she said, “I came here primarily to listen to our African members, and to find out how we can better tailor support to countries in this region in the current difficult global environment.”

Nigeria is indeed in serious economic problem. For instance, the value of the currency has been devaluing against major foreign currencies. The official value of naira against dollar is currently 156 to a dollar and at the Bureau De Change, it goes for 165 against the dollar.

The governor of central bank, Sanusi sometime this year faulted the IMF for suggesting that the value of the naira be devalued to protect further depreciation of the foreign reserves.

I know better than Okonjo Iweala {NileBowie}

However, the governor bowed to pressure and got the naira devalued. It is the same pressure from the Western powers that is pushing the government to remove fuel subsidy.

In Nigeria, removal of subsidy would necessarily lead to hike in fuel pump and such hike would trigger increment in the price of other commodities and services.

It is already been speculated that by next year, when subsidy might have been removed, Nigerians would have to pay as high as N140 per litre of petrol. The price is currently N65 per litre.

What this means is that Nigerians should gird up for tough times next year. This is because any increase in the price of fuel would push the cost of production in the manufacturing industry up.

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Also, cost of transportation would go up and even operators of Small, Medium Scale Enterprises would not be able to continue in business because most of them relied on generators to power their machines and generators are powered by fuel.

Some civil society organizations and organized labour are urging Nigerians to come out and protest subsidy removal. The question is, can Nigerians occupy the “Three Arm Zone” as Americans “Occupied” the “Street.”

Subsidy removal is turning out to be another Bretton Woods Institutions’ anti-peoples’ policy. It is a neo-liberal agenda developed by those in authority. It is not a popular idea but that of the ruling power. It is becoming a dominant idea because in every political setting, the dominant idea is the idea of the ruling power.

Now that the government is bent on removing subsidy from fuel against people’s outcry, the question to ask is if this is the “Fresh Air” that President Goodluck promised Nigerians during his campaigning? – source

Comments

comments

  • Ahmed mohammed wonko

    Tough time for the less advantaged. God save us

    • Pappie

      No doubt that this is going to be the harsh and hard time for poor Nigerians. May God save us from the wickedness of our leaders and the evil antics of the west (IMF).

  • no name!

    Why should Nigerians be suffering for the European recession? since when did it become a member of the EU? Let the European people sort their own problems while the African also deal with theirs. All man for himself i guess. The masses should be considered. We know the so called leaders wont feel the impact of the fuel increase since they can always steal money as usual to take care of themselves and their families.

    If the price of the fuel is ever to be increased, Goodluck Jonathan and his people should make electricity stable so that the masses wont have to pay ridiculous amount to fuel their generators for business and personal purposes. How can a country like Nigeria compare itself to Ghana? The difference is clear and even a blind person can see that!

  • Nameless

    Can we continue to blame our incompetent leaders and the hidden agendas of the west if we, the people, do nothing to create the change we say we want to see in Nigeria?

    The Arab revolutions have shown what a people can do when they decide enough is enough.

    So until the time when we are ready to become the creators of our own destiny, let us remember that prayer without action is hypocrisy.

  • Nameless

    God helps those who help themselves. And as the old saying goes: "When you pray, move your feet.”

    Can we continue to blame our incompetent leaders and the hidden agendas of the west if we, the people, do nothing to create the change we say we want to see in Nigeria?

    The Arab revolutions have shown what a people can do when they decide enough is enough.

    So until the time when we are ready to become the creators of our own destiny, let us remember that prayer without action is hypocrisy.

  • Yuppyman

    May Allah render them, their power & their helpers useless. I mean the useless, shameless, no human feel'g, senseless, wicked & good for noth'g African reckless & stupid rulers. May thy almighty Allah bless the poor. This be'g my prayer….. May Allah save us all.

  • Ike

    May God not remove his subsidies.

  • abdulrazaq ivori

    yet I think this report should go ahead and analyse if actualy sustaining the oil subsidy is beneficial to the economy of the african nations. It is easy to blame the crimes of the corrupt african government on the western finanacial vultures. What the imf suggested was for the african economys to sigin an organ donor form before they take there own lives. So long as these thieving slaves remain in power africa is doomed whatever alternative adopted

  • Chiechefulam

    Devaluation of the naira amongst others have kept us this way.

    How can we (a country that produces oil)be buying fuel at the same rate as the US(a country that does not).Its crazy!

    If the government wants something to remove so bad,why not try,Unemployment,Insecurity,Inadequate power supply,et al.

    With regular power supply,the need(and use)of fuel would be minimal…

    We refuse to be slaves(again).

  • Chiechefulam

    nuary 4, 2012 at 12:40 pm

    Devaluation of the naira amongst others have kept us this way.

    How can we be buying fuel at the same rate as the US.Its crazy!

    If the government wants something to remove so bad,why not try,Unemployment,Insecurity,Inadequate power supply,et al.

    With regular power supply,the need(and use)of fuel would be minimal…

    We refuse to be slaves(again).

  • Anti-West01

    African Nations need to unite against these white devils.

  • Omoabyode Lepe.

    The western world is very good fundamentally, and that's the power of the western education, am very sure our government has been canvassed with detail fundamental on why Nigeria and other african countries as said should stop paying for subsidy or whatever it may look like, right now there's economic crisis in europe and other top countries of the world, they cannot seem to get anymore loan to run and sustain their economy, they keep on developing strategies to avoid total breakdown, and they know certainly that if they do not get out of the concerns as regards their economy early enough they could fall and collapse totally. For IMF to be so much in africans countries mostly third world countries, it means the western world is initiating an underground plan to using the measurement laid on ground for us as regards fuel subsidy and the rest as a possible solution to their economic concerns. From what I read here, the troubled economies of the world sense a total breakdown this 2012 or beyond, and that's why they have compelled but claiming to just given word to the different governments of the above mentioned african countries so that by the time we obey their words, it will gradually have positive effect on their economies or what do you think?. But one point is glaring in all this, Nigeria is the only fuel producing country subsidizing for oil before now and the most expensive pump price for oil producing countries, the big question is "why" and that's what Nigerians are fighting for. I remember Sen. President David Mark sent back words to the western countries as regards same sex marriage bill which was passed by the senate and I quote "when they make their laws, we do not interfere so why do they want to interfere in ours", we are africans, we will be africans, we will always be a lower existing homo-sapien to the whitemen and the rest of the western world, if we do not stand up and tell them we are not what they think we are, they will continue to think we are what they think we are. God help us.

    • Upmaxbob

      Nice words up there… Please Lets stand up for our right, and dont let them take us to be what they are calling us.MONKEY even though our leaders are but we the core citizen should show them we are NOT and wiser than they think. Stand Up Nigerians(SUN) UPMAXBOB

  • http://egundeyiolamide@yahoo.co.uk egundeyiolamide@yaho

    dis is bad. even b4 subsidy removal prices of good had already increased eg sardine which used to b n120 bcame n250 in 3 wks. i tink the youths of nigeria should protests like how tunisia, egypt etc did but instead they r pingin up n down. me i am down for protests.

  • Upmaxbob

    Seriously, this are ANTI-CHRIST, despite all the killings in Nigeria, is subsidy the next thing… Damboro ba to ALL THE useless FEC!

  • Titilayo Elugbadebo

    He promised Nigerians Fresh Air rather he gave us Tough Air. May God help me the Masses.

  • shirlz

    The removal of the subsidy after doing some research will be a plus to the economy. As a Nigerian i have tried to be logical about this issue and weigh the pros and cons and have come to a deduction that before the govt totally removes the fuel subsidy there should be a cushion measure put into place for the Nigerian masses, but though all debates and arguments i have listened too and watched, an implementation of this has not commenced yet.

    we definitely need to be prepared for a bit of tough times ahead because at the rate the govt is going, the fuel subsidy removal is here to stay. it is very sad to know that the same govt is not even willing to sacrifice for its own people. Y can't they cut down on most of their allowances as these allowance are just ridiculous. Y can't the president feed his own family from his salary as it is done in some countries? y are ministers and senators paid fat salaries? i believe working in the govt should be a self service for a country and not a means to get to the Forbes list!

  • Basgamah

    The removal of fuel subsidy in Nigeria is a full confirmation of corruption by its key officers. So much has been allegedly stolen by govt officials over the years. Now they are passing the fact of this theft over to ordinary Nigerians.

    Meantime ,Govt apologists are making the noise that labour should stop its planned protest because of security implications. Yet they never thought of this when govt was planning this assault on the people.

    Anyway, for how long would Nigerians be suffering under the yoke of IMF, who turn blind eye on the lootings that have been going on?The UN should set up an Economic Crime Court in line with some of its structures to try leaders who look their countries dry.

    . Nigerian leaders have been getting away with so much economic crime against the people & worse they have even been stealing votes to force themselves on them.

    The UN must find a way out of this dictatorship in the name of democracy which western powers support as long as the sham winner is their stooge.

    Finally, the purported order by a court stopping labour from its planned protest should be clearly understood within the law. The order is on labour NOT Nigerians. Thus even if labour withdraws Nigerians can still go ahead as there is no court order stopping them from protesting the extremely harsh policy. No to second slavery by the same slave masters of yore using the Bretton Woods as the slave catcher. As the local chiefs of the slave age collaborated with the slave catchers of that horrible time, so are our modern leaders collaborating with the new slave catchers.,the Bretton Woods.

  • ShiftingFly

    Slavery in Africa NEVER ended, it just changed form from the physical to the mental. The latter is more deadly because it has a created an illusion of liberation from the western Zionist which has never existed. 2012 is the endgame for the Zionist, and the removal of the fuel subsidy is the first step towards the end of Nigeria as we know it. Every so-called leader of public office since independence, with a few exceptions, has blood on their hand. This is a NWO takeover, and like slavery centauries before, we have sold ourselves down the river. I am calling for a REVOLUTION in Nigeria, but alas, even that might be too little too late.

  • Bill Blass

    I knew Goodluck wasn't smart enough to come up with this mess. C'mon Y-T, slavery is over….get it together!

  • Anonymous

    We are just unfortunate to the very greedy leaders…they only agree to the terms of the west atimes due to blackmail (we know about your huge stock-pile of loots)…

    but when the west meets their match in very strong leader figure…they aggressively topple such government (Iraq, Libya, Egypt, Tunisia and the list is still counting)…that is not to say these leaders are not guilty of abuses…

    but i think the west (Europe and now the Americans) have abused human-being more than any creature….right from the days of cruel slavery to today’s modern slavery

  • Godfrey

    Nigerian Leaders are the same from the day British Government handed the throne to first Republic. we have not seen any change in so called leadership in Nigeria, if the government are sincere, let the so called members of House of Representatives and Senators quietly move motion for the review of our constitution, in that constitution review, there will be clause for any person that stole govt. money,corruption in the office of any kind, when govt. of Good Luck Jonathan starts from these, believe me that there won’t be poverty everywhere in street of Nigeria.      

  • Supo Adedokun

    Fine work. Please continue to expose the monster. Some of us who cry out when Dr Okonjo Iweala returned to Nigeria as Minister of Finance. She used Nigerian people’s money to vie ignorantly for World Bank presidency as well as boasting of having experience for the post.. Her presence in the government is nothing but IMF/World bank run government. It seems, the minister is naive in several public statements, inter alia “I have come to fix unemployment” when she took up appointment. Obasanjo resisted her ;policy to withdraw subsidy on petroleum products
    One strategy by IMF/World Bank and their imperialist capitalist nations are using is planting women in crucial position in Africa for decisively control their resources.
    You are correct, our finance minister first allegiance is World Bank, and at the slightest of unmanageable crisis, she will flee to her Washington home.

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