President Bola Tinubu Only Reduced Fuel Subsidy, Didn’t Remove It, Says Bismarck Rewane
- Bismarck Rewane, a prominent Nigerian economist, has stated that the fuel subsidy in Nigeria has not been completely removed
- He noted that President Bola Tinubu only implemented a reduction in the subsidy to keep fuel prices lower than they would have been without any subsidy
- Rewane also called for comprehensive reforms in various institutions, including monetary, fiscal, justice, and security, to fully benefit from democracy
Bismarck Rewane, a renowned Nigerian economist and member of the Nigerian Economic Advisory Council, has asserted that Nigeria has yet to remove fuel subsidy completely.
According to Rewane, the current government has only implemented a reduction in the subsidy rather than its total removal.
He made these remarks during an interview on Channels Television's 2023 Democracy Day program.
Source: Facebook
Rewane's comments on fuel subsidy
Rewane explained that if the subsidy were removed entirely, the fuel price would be significantly higher than the current rate.
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He also noted that the Nigerian National Petroleum Corporation (NNPC) Limited would sell fuel within a price range of N488 to N568.
In his own words, Rewane stated:
"The truth is that the subsidy has been reduced. If the subsidy had been removed, then the price of petrol, as you see it today, would be much higher than it is."
Rewane comments on economic issues
Rewane also underscored the importance of addressing multiple issues simultaneously rather than adopting a piecemeal approach.
He added that with the "fuel subsidy removal," inflation should go as high as 25% in June and 28% in July.
"You cannot focus on individual aspects alone. You cannot fix the interest rate and ignore the exchange rate. You cannot address petroleum subsidy and neglect debt. It has to be a comprehensive package".
"We need to optimise our resources to achieve optimal outcomes, and that is the direction we should be headed."
Tinubu makes first decision on use of old and new naira notes
Meanwhile, President Bola Tinubu made his first declaration on using old and new naira notes.
The old naira notes are expected to stop being legal tender at the end of December 2023.
Godwin Emefiele, CBN's governor, is expected to leave office in the coming days after nine years at the helm of affairs.
Source: Legit.ng
