Peter Obi’s Shrewdness Exposes Osinbajo’s Economic Illiteracy
The Oasis Reporters
December 17, 2018
By Chidiebere Nwobodo
I would have allowed the dust raised during the Peter Obi versus Yemi Osinbajo debate to rest, if not that the All Progressive Congress, APC; instead of quietly nursing its wound of defeat by vintage Peter Obi, has resorted to infantile propaganda and cheap blackmail to shore up its fast fading image, by distorting the facts and figures, as regards what transpired during the debate.
That Professor Yemi Osinbajo; Nigeria’s vice president, was outclassed and outflanked by our own Adam Smith—Peter Obi, cannot be overemphasized. Paraphrasing, Peter Obi said that fuel subsidy payment is hemorrhaging the nation’s economic life to its knees. He insisted that continuing with the scheme is tantamount to subsidizing inefficiency and corruption. He propagated that Nigeria was spending over a trillion naira annually to subsidize petrol; while the humongous amount could have been channeled into reviving the country’s dilapidated critical infrastructures. The PDP vice presidential candidate did not argue in favour of fuel subsidy removal for the fun of it, but rolled out economic modalities that should apply in achieving an economy, free of fuel subsidy burden and low cum affordable price of petrol. Obi nailed it.
Former Governor of Central Bank of Nigeria (CBN) and current Emir of Kano, Sanusi Lamido raised alarm in May this year, on the rising cost of fuel subsidy, and the urgent need to get rid of the cesspool of corruption and inefficiency—benefitting only the cabal. He was quoted as saying:
“I have looked at some of the deliberate policy decisions that have been taken, such as the continuation of the fuel subsidy, we are spending a trillion naira to 1.4 trillion naira on petroleum subsidies. Imagine what we could do with that. How many refineries will be built? How many power plants you could build? How much you could fix on your transmission. So we need to decide for ourselves and understand that every dollar we spend, we have made a choice. We need to decide what is our priority and by this we can free up resources from some of these areas and put them into these areas.”
Emir Sanusi collaborated the valid points Peter Obi made during the debate on fuel subsidy. Former CBN governor has been consistent in the vanguard of advocacy for the removal of petrol subsidy. As the head of Nigeria’s Apex bank, in 2012, he passionately joined President Jonathan’s cabinet in calling for the end of the scheme—even when he disagreed with the government on several other issues.
Mind you, throughout the period the fierce battle for the termination or continuation of fuel subsidy raged, Professor Osinbajo was part of the pro-fuel subsidy group protesting at Ojota. The APC vowed during its campaign that fuel subsidy would be expunged from the system as soon as it clinches power. When President Buhari became president, Nigerians were told that fuel subsidy had been removed, and that we should bear the financial burden of paying N145 a litre, against previous N87 of the last government. Today, Osinbajo is encouraging the continuation of the same subsidy he once referred to as scam, while Nigerians are paying more; both in fuel subsidy and pump price of petrol. What an aberration! This is the height of insufferable hypocrisy! A pastor for that matter!
During the course of the debate, Vice President Osinbajo made reference to America’s subsidy to its agricultural sector, especially farmers. He cited it as good example why Nigeria should not stop paying fuel subsidy. Osinbajo got his economic ignorance exposed here: American government is subsidizing production while the Nigerian government is subsidizing consumption!
American government subsidies on its farmers; creates jobs, wealth and foreign exchange, while Nigeria’s subsidy on refined petroleum products breeds corruption, unemployment, and decay of our refineries. While American farmers—with the support of subsidy, are producing and exporting soybeans and other lucrative agric produce to big economies like China, Canada and Australia, in exchange for foreign earnings in billions of dollars, Nigeria is wasting her scarce resources to subsidize importation of petrol—our own natural resources!
Prof Osinbajo goofed here by comparing apples with oranges. This is what happens when we elect a lawyer and Senior Advocate of Nigeria (SAN), to head our economic team as vice president. Very pathetic!
Prof Yemi Osinbajo trumpeted on how the nation’s economy has “grown consecutively for the last six quarters”. He got busted again. He straitjacketed himself into the pigeonhole of propaganda — boxing himself to a tight corner. Nigerian economy exited recession in May this year, 2018; which was second quarter of the year. One quarter is equivalent to three financial months. From May till now is three quarters. The economy has managed to leapfrog from GDP growth rate of 0.4 to 1.8% in the last three quarters.
Million-dollar question is: ” were-where-wear” did Osinbajo get his SIX CONSECUTIVE QUARTERS?
Does he think that some of us are intellectually-challenged like some folks who swallow every conjecture hook, line and sinker?
Before Buhari’s emergence in 2015, the Nigerian economy grew at 6.7%, to the point that we became the third fastest growing economy in the world; with the largest economy in Africa. The APC came on board, crashed the economy into recession—first time in thirty years, yet has the audacity to celebrate failure of 1.8% GDP growth—for three quarters; not even six quarters as Osinbajo told Nigerians! This is shameful!
The APC should better return the economy to the growth rate of 6.7%, where they met it, before leaving office next year. It’s time for Nigeria to put square peg—Peter Obi, in the square hole of the economy, if we want to catch up, and subsequently compete with the rest of the world economic powers.
Written by Chidiebere Nwobodo
