Senator Shehu Sani, former federal lawmaker from Kaduna state, has spoken on what Nigerians will experience if the price of petrol becomes N340 per litre.
Sani's comment follows a statement by the Group Managing Director and Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC) that the price of petrol may range between N320 and N340 per litre after the removal of subsidy in 2022.
Taking to his Facebook page, the former senator listed what will happen if the product is being sold at such a high price.
- Salaries or wages will be worthless
- Landlords will increase the rent
- The schools will increase the tuition and parents must pay
- Food prices, transport, water and electricity bills will increase
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Though the minister of finance, budget and national planning, Zainab Ahmed, said the subsidy will be replaced with a N5000-a-month transportation grant to the poorest Nigerians, Senator Sani said the government's plan cannot solve "all these problems".
World Bank advises FG to remove petrol subsidy
The Bank, however, advised the government to come up with programmes to protect the poor from the burden of the subsidy removal
It also advised the government to redirect the savings from petrol subsidy to finance primary health, basic education, and rural connectivity projects.
Governors back subsidy removal, says El-Rufai
Meanwhile, Malam Nasir El-Rufai, the governor of Kaduna state, has said state governments are in support of the federal government's plan to exit fuel subsidy regime.
El-Rufai, a panelist who joined virtually, said that if the regime of fuel subsidy was not eliminated, 35 out of the 36 states of the federation may not be able to pay salaries in 2022.
He argued that kerosene which matters most to the masses had been regulated without any hitches, while diesel which was most important to transporters had also been regulated for a long time. Similarly, Marco Hernandez, World Bank Lead Economist for Nigeria said petrol subsidy is not only costly it also mainly benefits richer households.