Ahead of the June 2023 date for removal of fuel subsidy, indigenous technology-powered mobility company, NAIRAXI, has said Nigeria spends over N6 trillion yearly on the policy.
The Chief Executive Officer, Kingsley Eze, while stating its discontinuation is overdue, noted that a lot of benefits await Nigerian once done.
Interacting with the media, yesterday, in Abuja, Eze canvassed digitisation of the nation’s public transportation systems to lessen burdens of the citizens.
He said the country could not afford sustaining the fuel subsidy regime in view of the credit crunch across the globe.
His words: “Liquidity is hard to come by. So, there is no way to sustain the policy. Even if the government wants to fix the refineries with the best intention, they will still be unable to fund the budget. So, when you understand this, they have to treat the immediate cost of that bloated budget, which is the fuel subsidy, that swallows over N6 trillion every year.
“What it means is that if you can save N6 trillion, you can reinvest it to generate a greater good for the populace, because the International Monetary Fund (IMF) and other international organisations have advised Nigeria to get rid of the fuel subsidy regime.
“From government information, the refineries are being refurbished. Dangote Refinery will also come on stream later this year. But while we are waiting for that to materialise, we have to remove the fuel subsidy for us to move forward as a nation. And that is why I see personally that it can be a blessing if government manages the fuel subsidy removal properly.
“I’m sure we are going to transform developmentally because N6 trillion naira can build lot of hospitals, roads, revamp dilapidated infrastructure and boost industrialisation in the country.”
He added, “so, if we remove the fuel subsidy properly, and mitigate the short term impacts of the fuel subsidy, and reinvest the money that we save effectively, fixing the refineries, getting more private sector players even in the refining industry, I’m sure at the end, it will be a win, win and bless the fact that we remove that fuel subsidy in the first place.”
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