By Chris Udochukwu
Expert have called on the federal government to fix the moribund refineries and electricity before removing subsidy.
Professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Prof Sheriffdeen Tella, who spoke to punch, advised the Federal Government to focus on boosting domestic production.
He urged the government to ensure that the refineries were working rather than focusing on removing the fuel subsidy.
Tella said, “We should not be talking about fuel subsidy. We should be talking about making the refineries work. If the government cannot make it work, they can commercialise it.
Doing something to ensure our refineries are working is what is important.”
The former President of the Association of National Accountants of Nigeria, Dr. Sam Nzekwe, advised the government to ensure that certain things were in place to reduce the adverse effects of poverty on Nigerians.
A Professor of Economist at the University of Uyo, Prof Leo Ukpong, however, said the issue of fuel subsidy was tricky but the government still needed to remove it.
According to him, it makes no sense economically for the government to have crude oil but no efficient refineries.
An analyst and Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, told The PUNCH that the odds were stacked against the proposed subsidy removal.
Yusuf, who is a former Director-General of the Lagos Chamber of Commerce and Industry, said there were obvious concerns about the potential political cost to the government and the ruling APC.
“There were worries about the social cost given the excruciating poverty in the country.
There was also the waning goodwill required by the government to enlist the support of the people. But the economic cost of the capitulation is equally weighty,” Yusuf added.
