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Nasir el-Rufai, governor of Kaduna state, has asked the federal government to end the costly petrol subsidy which has negatively affected Nigeria’s economy.
The governor spoke on Tuesday in Abuja during a panel session at a policy deliberation themed ‘How Nigeria Can Build a Post-Oil Economic Future’.
The event was jointly organised by the Africa Programme of the Carnegie Endowment for International Peace, and Agora Policy, an Abuja-based think tank.
El-Rufai said there is a need to end petrol subsidy and to be pragmatic about solutions to the country’s problems instead of delaying.
He recalled that in 2021, the national economic council (NEC) gave a committee he chaired an assignment to work out a framework on what to do with the resources if subsidy was removed.
He listed the components of its recommendation to include a framework on investments in security, social protection, infrastructure, health, education, among others.
“We worked with experts and the World Bank and came out with a report on what to do with the resources which would be transparently explained to Nigerians,” the Kaduna governor said.
“In 2021, the federal government’s budget for road was N200 billion and in 2021 we were projecting to spend N1.2 trillion on subsidy and we saw the danger and I called for its removal.
“We have a framework and the economic council agreed for it to be withdrawn because we had a clear plan on where the money should go which includes federal, state and local government for interventions.
“It is still on and currently we are looking at N6 trillion on subsidy but go and check the national budget on infrastructure, health and education, it is not up to that and that does not make any sense. So, we need to end the subsidy.”
On his part, Chukwuma Soludo, Anambra state governor, called for transformational leadership and agenda, saying that the incoming administration has a chance for a fresh start.
“It has to start by getting the team assembled and getting to work immediately with institutional reforms and a competitive system,” he said.
Soludo advised the government to study case studies of successful subsidy removal and replicate them in the country.
Also speaking at the event, Muhammadu Sanusi II, the former Emir of Kano, who was a special guest, underscored the need to prepare the minds of Nigerians on bad decisions that have bankrupted the country and close that hole.
Sanusi said in order to get it right, the incoming government should place competent officials in suitable positions.
“We are going to have a government sworn in May 29 and I think we have to start stating what is expected of that government,” he said.
“What do we, as Nigerians, classify as a milestone that shows we are heading to the right direction? We also need a government that understands the depth of the crisis that we are in.”
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