Nigeria is Still Paying for Fuel Subsidy – Yuguda Says
Former Bauchi State Governor, Isa Yuguda, has highlighted that the Federal Government continues to provide subsidies for petroleum products.
In his inaugural address last year, President Bola Tinubu famously declared, “The fuel subsidy is no more,” emphasizing that the 2023 Budget did not allocate funds for fuel subsidy and justifying that subsidy payments were no longer warranted.
In a recent report, the International Monetary Fund (IMF) recommended Nigeria to phase out expensive fuel and electricity subsidies to tackle its economic challenges effectively.
Following the removal, petrol prices have surged in major cities, skyrocketing from under N200 per litre to around N700 per litre. This spike has significantly raised the prices of goods and services, exacerbating the economic hardships faced by millions of citizens.
Yuguda acknowledged the IMF’s stance on subsidies, asserting that the eliminated subsidy was lining private pockets. He clarified that the removed subsidy, which should have been directed to the country’s treasury, is now contributing to the nation’s revenue growth.
‘You have that subsidy being paid on petrol products that are pumped through pipelines and in many instances, they are pumped through imaginary pipelines, where the pipelines don’t exist, so we all pay subsidy but that what was the President removed, that is why most states are getting twice or thrice of their allocation.”
Discussing the economic challenges in the nation, the ex-governor highlighted that the average Nigerian may not grasp the hurdles the president faces in addressing the economic crisis.
He stressed the need for the president’s advisors to educate the public on how governmental measures will impact the country.
“I anticipate Mr. President’s cabinet to engage with all levels of society and clarify the current circumstances we are in.”
“Without the Central Bank’s disruptions and the historical mismanagement of the economy, the current state of affairs would not be as dire.”
