Former Lagos State Chamber of Commerce and Industry Director-General Muda Yusuf has campaigned for the abolition of fuel subsidies, arguing that it is critical for the country’s economic survival.
Last Monday, Zainab Ahmed, Nigeria’s Minister of Finance, Budget, and National Planning, said that the government would phase out petroleum subsidies in favour of a monthly N5,000 transportation allowance for nearly 40 million impoverished Nigerians.
Yusuf reprimanded such a system in which the government spends about N3 trillion on fuel subsidies every year.
“This is something that must occur for this economy to remain viable. ” Examine the macroeconomic consequences, the impact on our reserves, the impact on our foreign exchange, and, most significantly, the impact on investments,” he said.
“How can we have a policy that prevents investments in a sector as important as petroleum, which is precisely what this thing is doing?” We can effectively feed the entire West African sub-region with our PMS. “Unless we want to damage the entire economy, that is not sustainable.”
He argues that the current administration should redirect subsidy funds to primary healthcare, elementary education, and rural roads.
While emphasizing that the new government’s policies would be difficult for Nigerians, the former LCCI chairman stated that the withdrawal of subsidies would have significant social consequences.
Inflationary consequences, political repercussions for the ruling All Progressives Congress (APC), and other issues are among them, he said.
According to Yusuf, the government has enlisted the help of the people by offering a monthly stipend of N5,000 to around 40 million disadvantaged people.