Hardship: ‘We Must Stop Subsidizing Lifestyles of Nigerian Politicians’ – Moghalu

Former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has encouraged the Nigerian government to cease funding Nigerian politicians’ lavish lifestyles amid the increasing economic hardship that has plagued the country.

Giving this advice in a statement made available on his official X account on Monday, Moghalu alleged that the President Bola Tinubu-led government had silently re-introduced fuel subsidy to prevent further increase in the pump price of fuel.

Naija News reports that the former apex bank chief argued that subsidizing an effective nationwide public transportation system at a fraction of the cost of the petrol subsidy would have been the smart economic choice given our poor fiscal situation.

He explained that with N500 million a year, the federal government could adequately and effectively subsidize transportation for the Nigerian populace to cushion the impact of the removal of fuel subsidy.

Moghalu wrote, “Whatever the economic argument for removing subsidies on imported petrol (now apparently restored through the back door to prevent further increases in the price at the pump) and forex, one subsidy stubbornly clings on: the subsidization of Nigeria’s political class.

“The subsidization of the lifestyles of Nigerian politicians must end before Nigerians can be persuaded on the economics of subsidy. Again, as one has noted, there is of course a whole separate argument about how competently the subsidies removal was handled. Subsidizing an effective nationwide public transportation system at a fraction of the cost of the petrol subsidy would have been the smart economic choice given our poor fiscal situation. Most economically developed and emerging market countries of the world do this.

“The subsidies had to go because there was just no choice. But it’s not just about subsidies per se. It’s more about WHAT is subsidized, & how. N500 billion a year can subsidize a public transport system nationwide. That’s different from N5trillion a year for a fraud-ridden scam.”