Salve for subsidy pains and the Ogun state model

BY ISMAIL RASHEED

Even when the increase in the price of petrol was only marginal, the effect on the cost of living has mostly been adverse. So, the effects of about 400% price increase can be no less so. Even if the removal of oil subsidies was perceived mainly as inevitable, the angry reaction across the country can by no means be dismissed. The socioeconomic measures introduced by the federal government and states to mitigate the cost of living crisis wrought by the subsidy removal is a testament to that. The question is how truly impactful such measures are in reality.

To many, the palliatives are mere perfunctory gestures conceived to douse public discontent than actually alleviate the pains of the people. But beyond this cynicism, there are a few not coloured by the familiar tokenism that often taint government policies meant to address poverty. The list of palliatives announced by Governor Dapo Abiodun is one such. The measures tackle the immediate needs with practical solutions in the short run and another broader set of social packages that address the problems in a way that endures even long into the future.

The short-term measure comprises a cash payment of N10,000 to every public servant and pensioner for an initial three-month period that commenced in July.

This measure also includes food palliatives shared out to the vulnerable, which reveals an overarching desire to make the programme wholly inclusive. Indeed, that inclination is clearly in sync with the famous injunction by Mahatma Gandhi: “The moral test of a society is how it treats its weakest members”.

In clearly defining the beneficiaries of the palliatives, Ogun state has avoided the problems that trail the cash transfer scheme of the federal government based on the social register, largely considered opaque by many.

Besides the sharp increase in prices of foodstuff, one other major impact of the fuel subsidy removal is felt in transportation, where commuters now have to pay higher fares, albeit without a commensurate rise in income. It is in light of this that the conversion of the state-owned mass transit buses and sundry commercial buses to compressed natural gas (CNG), introduced by the Abiodun administration, sounds compelling. The goal of this policy, which also strives to acquire additional CNG buses to ease transportation in the state, is to reduce the cost of transportation by charging rates comparable to what was obtained before deregulation. Related to this goal is the planned launch of Ogun state’s e-mobility programme, which seeks to swap petrol-powered motorcycles and tricycles with electricity-powered ones.

The policy on CNG conversion is particularly significant given the crucial role of buses in the state’s multi-modal transport system launched in early 2022. The multi-modal transportation masterplan incorporates road, rail, water, and air transport components. The vision is to create an interface in a way that each transport mode doesn’t just exist in isolation but complement one another in a somewhat unbroken chain for both intra- and inter-state commute. With regard to rail transport, Ogun state has leveraged the benefits of its proximity to Lagos to strike an agreement that would see the rail project developed by the latter extended to the former. Essentially, the 37-kilometre Red Line which runs from Marina, in Lagos, would extend to Ijoko and Kajola, both boundary communities in Ogun state’s Ifo local government area.

At the heart of the rail expansion and sustained improvement of road network is the implicit understanding of their capacity to open up more rural communities. Doing so fosters a sense of inclusion, particularly in those communities where people may have long felt cut off from the immense opportunities that improved road networks and regular rail service would usually confer.

Another vital aspect of Gov. Abiodun’s palliative support lies in how road construction has been integrated into the initiative. Specifically, communities are given the opportunity to nominate roads for rehabilitation. In this regard, local governments have been working in concert with community development associations and community leaders to achieve that.

Indeed, nothing feeds the democratic culture better than inclusive governance that offers citizens a participatory experience. The absence of this breeds resentment and cynicism. The Abiodun administration’s commitment to promoting inclusion derives further credence in Ogun state’s recent qualification for the second phase of the Nigeria for Women Project (NFWP), a World Bank-sponsored initiative that benchmarks development against the questions of social welfare programmes for financial inclusion of women.

For the governor, his government’s social policies are not driven by the search for validation. They are rooted in the conviction that the state loses its essence if government policies are not conceived primarily to improve the people’s welfare.

Rasheed writes from Abeokuta