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For struggle, Solidarity and Socialism in Nigeria |
Committee for a Workers' International
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Socialist Democracy September - October 2003
ANOTHER FUEL PRICE INCREASE?By Chinedu Bosah It is with shock that most Nigerians received the news that the Obasanjo government might increase prices of petroleum products again very soon, for the fourth time in less than five years and just three months after the last unpopular increment that led to nationwide protests and a general strike. In June 2003, President Obasanjo increased the prices of petroleum products from N26 to N40 which caused another nationwide strike that lasted for 8 days. But while responding to questions from journalists during his last monthly media chat, President Obasanjo insisted that, for the country to move forward, the prices of petroleum products must be increased once again. His view was also backed by Vice-President Atiku Abubakar, who, while speaking at the recent coronation ceremony of Oba Rilwan Akiolu of Lagos said: "for the country to develop, we must undertake some fundamental but painful reforms". In June, 2000 and January, 2002, when President Obasanjo increased prices of petroleum products, his argument was that he wanted to stop smuggling and illegal bunkering of petroleum products to neighbouring countries. But the big smugglers whose smuggling is done by bunker-ships and hunker-trailers are not ghosts but have 1001 web link with the ruling class. Also, the argument completely turned logic up-side down. An increase in petroleum prices in Nigeria automatically increased the petroleum prices in neighbouring countries since their only source of the products is Nigeria. But the major reason behind the incessant fuel price hike is the attempt to liberalise the down-stream sector of the oil industry. By so doing, the prices of petroleum products will have to be increased in order to usher in fabulous profit for the capitalist investors. Refineries This brings to the fore: what has happened to the country's four refineries? This is a question the present administration has refused to answer. To the chairman of the Petroleum Products Pricing Regulatory Committee (PPPRC), Rasheed Gbadamosi, the inefficiency of NNPC is a reason why the four refineries were unable to operate at full capacity. What Gbadamosi is yet to tell us is that between the working masses and the federal government, who controls and who is to be held responsible for the wreckage and sabotage of the refineries? It is unacceptable to make the working masses pay for the criminal tendencies of the ruling class. The same Obasanjo government said it had sunk about N89 billion ($700m) into the refineries for turnaround maintenance. Till this moment, the federal government has not explained to the masses what happened to the N89 billion. Who was this project contracted to and to what extent has the work being done? What is really happening is that the refineries do not work because if the refineries operate at full capacity, where are the profits to be made by the capitalist investors who want to import and make big profits at the expense of the working masses. The Economic Consequence For the past four years, the cost of goods and services have risen by more than 200%. Nigerians are becoming more miserable and poor because of the indescribable and unimaginable hardship brought upon the working class by the Obasanjo led government. Each time the government increases the pump prices, it has a multiplier effect on every other good and service. Currently, the price of kerosene is N32 but it is being sold at N87 per litre in Lagos and it is not even available at all in many other towns and cities. Today, the dollar exchanges for N143 as against N86 in 1999 when this regime came to power. That is the reason why 70% of 140 million in Nigeria live below poverty line. This implies that 70% live on less than $1 (N143) on a daily basis. That is why it is simply crazy for President Obasanjo to say that the only way to move this country forward is to increase the prices of petroleum products once again. This is nothing but another attempt to guarantee big profits for the capitalist investors at the expense of the working people. The Only Way Out The working class people must understand that for this political and economic terrorism to stop, they must begin to organise an independent mass based working class political party that will wrestle power from the ruling class. The wealth of this nation is not created in Aso-Rock, national and state houses of assembly, boardrooms, etc. Rather, the wealth is created in the factories, mines, workshops, etc. And it is only the working class who are in the best position to democratically control and manage the resources and wealth for the benefit of all and sundry. Until the working class people wrestle political power from the super-rich capitalist ruling class, the working class people should be rest assured that more attack is going to continually come from the Obasanjo-led government or any capitalist government whatsoever, not only in the oil industry, but from every other sector, e.g. Nigerian Airways, Nigeria Port Authority, NEPA, civil service, etc. The working class people should not only defend themselves by demonstrations, picketing, strikes, etc. In as much as these kinds of struggles are important, they offer temporary and not a permanent solution. A permanent solution is in dire need because the attack from the ruling capitalist class is endless and it takes different forms: privatisation, massive sack of workers, commercialisation of all social amenities, unjustifiable increase in price of petroleum products, etc. The only choice left for the working class people, masses and the peasants is a socialist arrangement whereby the working class people will play a leading role alongside the masses/peasants to nationalise the commanding sectors of the economy and democratically control and manage the economic resources and wealth for the benefit of the vast majority of the citizenry. All these can be made possible if the working class begin to see and organise ourselves as the only viable alternative to the capitalist ruling class and consciously build a mass based workers' party under the Nigeria Labour Congress (NLC) and/or other progressive political formations like the National Conscience Party (NCP) to take over political power from the present ruling class.
Socialist Democracy September - October 2003
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