By Oluwayanmife Ayobami
In a recent interview on Arise TV’s ‘The Morning Show,’ Peter Obi, the Labour Party’s presidential candidate in the 2023 election, spoke out against fuel subsidy, referring to it as an organized crime and why it should be removed.
Obi discussed his alternative approach to resolving the impending strike by the Nigeria Labour Congress and Trade Union Congress.
He also emphasized the need to eliminate corruption and criminal activities associated with fuel subsidy, which, in his view, is a significant contributor to the country’s economic challenges.
READ ALSO: Removal of Fuel Subsidy: What Can Nigerian Government and Citizens Do?
Obi suggested that by removing the illicit aspects of fuel subsidy and reducing excess demand, the government could achieve a 50 percent reduction.
He specifically said:
“Fuel subsidy is organised crime. I said it repeatedly that it should be removed. For me, the approach would have been, is to remove the corruption and criminal side of it and remove the excess demand.”
Subsequently, through consultations with various stakeholders, the remaining 50 percent of the subsidy could be gradually phased out, with the proceeds reinvested in critical development areas.
Subsidy back as FG pays N169.4bn in August
Meanwhile, despite President Bola Ahmed Tinubu’s repeated promises that fuel subsidies have been removed, recent findings by Daily Trust reveal that the government paid a significant sum of N169.4 billion in August to maintain the fuel price at N620 per liter.
Many reports suggest that this price stability, despite unfavorable factors like a weaker exchange rate and international crude oil prices exceeding $95 per barrel, hints at the return of fuel subsidies.
A document from the Federal Account Allocation Committee (FAAC) indicates that in August 2023, the Nigerian Liquefied Natural Gas (NLNG) paid $275 million in dividends to Nigeria through NNPC Limited.
