NECA recommends the government to step up widespread public awareness campaigns to communicate not only the reason for the subsidy removal but also its potential impact and measures to mitigate the short-term negative effects. Efforts to provide immediate short-term palliatives should be fast-tracked in view of its urgency,” he added. “Reports have shown that less than three percent of Nigerians (the super-rich)benefit from the subsidy regime. On the positive side, he said the removal could unlock over six trillion naira in revenue annually, which can be channeled into infrastructure development, etc. “The announcement by the President triggered the hoarding of petroleum products and inflationary pressures with negative consequences such as increase in transportation fares and the upsurge in prices of goods and services, among others,” Adewale-Smatt Oyerinde, director-general of NECA, said in the statement.Īccording to Oyerinde, these pressures will, in the short-term further erode the purchasing power of average Nigerians, increase the input, operating, and production costs for organized businesses and if not urgently checked, would result in heightened contraction in domestic production and business activities. Read also: NSC: Driving port efficiency through fight against corruptionĬurrently, fuel in Africa’s biggest economy is selling at an average of N526.7 per litre from an average of N191.8 per litre a month ago, according to BusinessDay’s calculation of NNPC’s new/old price list. Last Monday, President Bola Tinubu during his inaugural speech announced the removal of the petrol subsidy.īarely three hours after the speech, fuel prices across the country surged by an average of 174.6 percent from their then price a month ago. “It is now clear that more sustainable interventions that the nation urgently needs to cushion the short-term effect of subsidy removal will take medium to long-term to materialize, including the urgent rehabilitation and transparent privatization of the local Refineries across the country,” it added. It said since 1999, several quick-fix efforts such as the sponsored mass transit, SURE-P and other initiated palliatives in response to fuel price upward adjustment failed.
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