REMOVAL OF FUEL SUBSIDY WILL POSE MORE HARM THAN GOOD TO NIGERIA- EXPERTS
An expert in Development Economy and Finance, Mr Tunde Olatunji, has advised the Federal Government against the removal of fuel subsidy as proposed by the International Monetary Fund (IMF).
Olatunji, who is a member of the Osun House of Assembly, told the News Agency of Nigeria (NAN) in Osogbo yesterday that the removal of fuel subsidy would do more harm than good to the economy.
Recall that the IMF said in April that with the low revenue mobilisation that existed in Nigeria in terms of tax to Gross Domestic Product, it would be best for the country to remove fuel subsidy.
The Managing Director of IMF, Christine Lagarde, while addressing a news conference at a joint annual spring meetings with the World Bank in Washington DC last month, said that by so doing, the country would be able to transfer funds into improving health, education, and infrastructure.
Olatunji however said that the Federal Government could remove the subsidy, but the country’s refining capacity should be first be strengthened. He added that an attempt to remove fuel subsidy without any arrangement in place will be like “solving one problem by creating another”.
Olatunji added that the advice offered by IMF might be due to the issue of corruption which has affected the economy through the subsidy before the advent of President Muhammadu Buhari’s administration.