LCCI vouches for fuel subsidy removal to cut costs and plug conduit pipes of sleaze
By Jeph Ajobaju, Chief Copy Editor
Economic growth is bound to resume after the Muhmmadu Buhari years of the locust, now that fuel subsidy has been removed by his successor, Bola Tinubu, says the Lagos Chamber of Commerce and Industry (LCCI).
LCCI President Michael Olawale-Cole expressed optimism for the new development, noting previous administrations shied away from taking the required step to end waste and grow the economy.
“LCCI wishes to commend the Federal Government on the removal of fuel subsidy. Unfortunately, previous regimes had shied away from this grave but nation-building decision,” Olawale-Cole said in a statement.
“It is, however, noteworthy that industry regulators and operators are already implementing the subsidy removal.
“The chamber is confident the removal will greatly impact the government’s coffers, reduce the outrageous cost of governance, improve accountability in the sector, impact government capacity to finance infrastructural development and to grow the economy.
“Furthermore, we anticipate that the decision, if followed through appropriately, will result in improved investments, especially along its value chain, promote healthy competition and even ensure product availability.
“Other gains are growth in aggregate employment, weaken the undue pressure on the local tender, improve balance of payments and economic growth.”
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Need to cushion negative effects of subsidy removal
Olawale-Cole said many reputable international institutions and local organisations, like LCCI, had over the years expressed concern about the enormous fiscal burden the subsidy placed on Nigeria and its financial wellbeing, per Vanguard reporting.
“Therefore, the chamber appeals to Nigerians to express understanding and support the government in the proper implementation of this much-desired policy,” he added.
“Also, we urge the government to express commitment to the welfare of the masses, especially the most vulnerable groups and industries. This can come in the form of palliative provisions and interventions for critical industries.
“The government should also hasten to rehabilitate existing refineries – get them into proper functional state. It can thereafter completely sell them in an open, competitive bidding process or partly sell them using the NLNG model.”