Obinna Chima writes on the need for the federal government to muster the courage to end the country’s fuel subsidy regime where a huge chunk of its spending is devoted to
Many believe it would boost investments in the downstream sector of the oil and gas industry and free revenues for the government to provide essential services. “As long as you have arbitrage, traders don’t see it as a crime, they just take advantage of that and exploit it. What we are dealing with is about N243 billion of fuel subsidy monthly. So, there is no magic around that.
He stressed that the policy remains a misallocation of resources and it benefits mainly people who don’t need it – the rich. The Lead Economist, Nigeria Country office of the World Bank, Marco Antonio Hernandez, painted a gloomy picture of Nigeria if the country decides to continue with the controversial fuel subsidy.
Hernandez who provided insights into the report of the World Bank, titled “Time for Business Unusual,” stated that should the current revenue challenge continue till 2022, only Lagos State would be able to meet its financial obligations. “Nigeria has the opportunity to establish a “compact” with citizens that eliminates the subsidy and uses the savings to provide targeted cash transfers to lower-income-households, invest in job-creating programs, and improve its fiscal position.”
“While the government took bold policy measures to mitigate the impacts of the COVID-19 crisis, the reform momentum has slowed which hinders Nigeria’s ability to reach its growth potential,” World Bank Country Director for Nigeria, Shubham Chaudhuri said. According to El-Rufai, “this is the first time in Nigeria that oil prices are rising globally, yet, there is no windfall. In fact, we are getting less. Why? Because according to Kyari, subsidy is taking N250 billion per month.”
The coalition gave the commendation in a seven-point communique issued at the end of a conference of the coalition in Abuja at the weekend. He said if the money being paid as cost of fuel subsidy was channeled into provision of infrastructure and other social sectors of the economy, there would be growth and development.
This is just typical. Write Bulls hit about removing subsidy when you know that on ground zero, the country's economy and security is hanging by a thread. Prices go up everyday now. Prices for every damn thing
This is very stupid of you guys from THISDAYLIVE. I did not read on this column about the government's preparation for the removal of subsidy or how it will help or cripple the citizens the govt works for!
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