How fuel subsidy removal will reduce borrowing – Expert (

How fuel subsidy removal will reduce  borrowing – Expert


The latest episode of the programme was titled Fuel Subsidy Removal Walking the Tightrope.

Mr Yusuf attended the event the president of the Independent Petroleum Marketing Association of Nigeria (IPMAN), Chinedu Okoronkwo the Managing Director Mutasit Oil and Gas, Titilope Anifowoshe and many other Nigerians.

Fuel queues returned to Nigerian cities Monday as many motorists scrambled to get petroleum products hours after President Bola Tinubu announced that the government would end the fuel subsidy regime.A petrol pump nozzle

Mr Tinubu, on Monday, in his inaugural address at Eagle Square, Abuja, declared that there would no longer be a petroleum subsidy regime as it was not sustainable.

On Wednesday, Mr Yusuf said the subsidy removal plan was not just a pronouncement because it is already effective.

Just the way it is, if the government does not backtrack, we are likely to see some savings of about N6 to N7 trillion annually we are likely to see a reduction in the pressure on our foreign reserves because we are spending close to 15 billion on importation of petroleum products, he said.

If we have a market that is liquid, a bulk of these things will have to be coming from the private sector as well.

The Director of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, has said that removing the petroleum subsidy would help reduce the nations budget deficit and borrowing appetite.

Mr Yusuf disclosed this while speaking at the weekly episode of PREMIUM TIMES TwitterSpaces.

We dont have private investors in the space because of the subsidy.

The change that will happen around this policy step has a lot of macroeconomic importance as it will reduce deficit, borrowing, ways and means, and once all these are reduced, it will impact on macroeconomic stability, which is necessary for growth and employment generation.


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