Why Petrol Subsidy Must Be Removed In Nigeria – Moghalu

A former Deputy Governor of the Central Bank of Nigeria (CBN), Professor Kingsley Moghalu says it is very important for petrol subsidy to be totally removed in Nigeria.

Moghalu in a statement on Monday via his Twitter account said subsidy must be removed if Nigeria would have a chance at economic revival.

He argued that many Nigerians are not well educated on the disadvantages of the subsidy regime and the fraud it is being used to carry out and that is why there’s resistance to the planned removal.

The former CBN Deputy Governor submitted that even with subsidy in place, life has gotten progressively worse for Nigerians hence it is better to educate the people of the country while the government puts in place well-conceived packages to reduce the potential inflationary impact the subsidy removal would bring along.

He wrote: “Petroleum subsidy must be removed if Nigeria is to have a chance at economic revival. The problem is that millions of Nigerians are not well educated on the disadvantages of the subsidy and the fraud it perpetuates on the economy. This education, plus a well conceived program (public transport, advisedly) to reduce the potential inflationary impact of subsidy removal, must happen over the next three months, then subsidy should be removed. Even with the subsidy for several decades, life has still gotten progressively worse for Nigerians. #NoExcuses.”

Subsidy Removal Plans On Track

The federal government of Nigeria on Friday said it has not dropped the plan to totally remove fuel subsidy in the country by June 2023.

The clarification was given in a statement by the Minister of Finance, Budget and National Planning, Zainab Ahmed through her special adviser on media and communications, Yunusa Abdullahi.

The Minister’s clarification follows earlier viral reports in which Ahmed was quoted to have said after the National Economic Council (NEC) meeting presided over by Vice President Yemi Osinbajo on Thursday that the government had shelved earlier plans of petrol subsidy removal in order to consult more widely and allow the incoming government to settle down.

However, the Minister on Friday said the government had no plan to suspend the planned petrol subsidy removal and only wants to expand the subsidy removal committee to include teams from the incoming administration and the state governors.

She added that after deliberations, the NEC categorically stated that the fuel subsidy must be removed because it’s not sustainable.