Peter Obi Finally Speaks on How to Remove Subsidy Without Causing Harm to Nigerians
- Peter Obi, the 2023 presidential candidate of the Labour Party, has reiterated his stance on fuel subsidy removal and naira float, emphasising that such economic decisions should be implemented strategically and with proper planning
- In a recent interview, Obi criticised the haphazard execution of these policies, questioning the lack of investment in critical sectors despite promises of infrastructure development
- He argued that while these measures were necessary, their abrupt implementation has led to significant economic hardship for Nigerians
Peter Obi, the 2023 presidential candidate of the Labour Party (LP), stated that he would have removed the fuel subsidy and floated the naira if elected president.
However, he emphasised that his approach would have been gradual and organised, ensuring minimal disruption to the economy.
Peter Obi Finally Speaks on How to Remove Subsidy Without Causing Harm to Nigerians. Photo credit: PeterObi/XSource: Twitter
Speaking during an interview with Arise Television on June 9, the former governor of Anambra highlighted the criminality and corruption associated with the subsidy regime.
He insisted that the practice needed to end but questioned the lack of visible investment from the funds saved since the subsidy’s removal.
Obi criticised the absence of significant improvements in critical areas of development, including education, healthcare, and poverty alleviation, despite the administration’s claims of redirecting subsidy savings to infrastructure.
He argued that without evidence of these investments, the rationale behind the policy remained questionable.
Fuel subsidy removal should have been strategic
Obi reiterated his long-held position on subsidy removal, referencing his manifesto, where he outlined a structured method for eliminating the policy.
He remarked:
“I have consistently maintained that I would have removed the fuel subsidy. If you go to my manifesto, it is there and the steps I would have taken in an organised manner.”
While acknowledging that subsidy removal was necessary, he faulted the haphazard manner in which it was implemented.
He pointed out that since the administration justified the removal to reduce borrowing, the billions saved should have been channelled into key development sectors.
Currency float requires productivity
Obi also weighed in on the floating of the naira, stating that the move, in itself, was not problematic. However, he stressed the importance of ramping up productivity in agriculture and manufacturing before devaluing the currency.
“There is nothing wrong in floating and devaluing your currency. You do this when you have productivity. In all of this, I would have done the same thing in an organised manner,” Obi said.
Impact of Tinubu’s policy shifts
On May 29, 2023, during his swearing-in ceremony, President Bola Tinubu announced the end of the petrol subsidy scheme.
The immediate effect was a sharp increase in pump prices, rising from N190 to N500. Since then, petrol prices have continued to climb, surpassing N850 per litre.
Additionally, the administration floated the naira, allowing market forces to determine its value. This policy shift aimed to stabilise the economy but has raised concerns about inflation and economic hardship.
Obi concluded that while these economic decisions were necessary, their execution needed to be methodical and well-planned to avoid unnecessary difficulties for Nigerians.
6 APC governors reportedly funding coalition talks
TheTalk.NG earlier reported that an exclusive interview with Daily Trust on 9 June, coalition insider and Action Democratic Party (ADP) chieftain, Dr. Sani Dawop, revealed that six governors from the ruling All Progressives Congress (APC) were actively financing coalition discussions.
According to Dr. Dawop, financial backing from these governors mirrored the political manoeuvres that led to the formation of the APC years prior.
Source: TheTalk.NG
