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Subsidy Removal Has To Happen For Nigeria’s Economy To Stand – Muda Yusuf

Former Director-General of the Lagos State Chamber of Commerce and Industry, Muda Yusuf, has backed the removing of gas subsidy, saying the transfer is critical for the nation’s financial system to face.

Last week, the Minister of Finance, Budget and National Planning, Zainab Ahmed, had introduced that the federal government would take away gas subsidy and change it with a month-to-month N5,000 transport stipend to about 40 million poor Nigerians.

Speaking throughout an interview on Channels Television’s Sunrise Daily, Yusuf condemned a state of affairs, whereby the Federal Government spends N3 trillion yearly on gas subsidies.

“For this economy to continue to stand, this is something that has to happen. Look t the macro-economic effects, look at the effect on our reserves, look at the effect on our foreign exchange and more importantly, look at the effect on investments,” he mentioned.

“How can we have a sector as important as the petroleum sector and we have a policy that is practically blocking investments into that sector because that is what this thing is doing.

“We cannot continue with a situation whereby we will be spending close to N3 trillion annually on subsidies and not just because of that, because of the investment, macro-economic implication,” he mentioned.

“We are almost feeding the entire West African sub-region with our PMS. That is not sustainable unless we want to cripple the entire economy.”

File picture of Muda Yusuf

 

He believes the present administration ought to channel the cash being spent on subsidies to major healthcare, fundamental training and rural roads.

While noting that the brand new authorities’s coverage wouldn’t be straightforward on Nigerians, the previous LCCI boss mentioned the subsidy removing would have loads of social implications.

One of those, he said, consists of inflationary implications, political prices for the ruling All Progressives Congress (APC) amongst different challenges.

According to Yusuf, the federal government has engaged the lots by proposing a minimal of N5,000 per 30 days to about 40 million susceptible lots .

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