The unending subsidy regime on Premium Motor Spirit and government’s continuous intervention in the power sector do not only drain the nation’s economy, but also retard the development of oil and gas, as well as the power sector.
The monarch charged President Buhari to tell Nigerians the truth about the country’s economic situation and also act quickly on this. “The people being subsidised are more in rural communities. They don’t really benefit from subsidy. The middle and upper class are the beneficiaries. The overall cost is affecting the masses,” Jaiyeola said.
“People are spending and incurring a lot to power their houses and businesses; people are spending on generators, inverters, etc. They will spend less if the sector is allowed to operate freely,” he added. “Without any further controversy, the country is long overdue for subsidy removal. So, I want the Federal Government to remove it as most of the fuel imported into the country was being diverted to neighbouring countries on a daily basis.
But he was quick to point out that the subsidy payment on petrol and electricity as currently practiced are creating more problems for the economy than solutions. While stating that there was need to look at a gradual method of removing subsidies, Fawibe noted that the petroleum sector must be allowed to operate independently.
“The positive impact of such borrowings must be clear for all to see. The multiplier effects must be visible in the critical sectors of the economy. The borrowed funds must drive performance in critical sectors of the economy and directly and indirectly generate returns that would pay both the principal and interest on such borrowings. This demands from managers of the economy, prudence in resource management, accountability and fiscal discipline,” the don said.