Fuel Subsidy Responsible For 50% Of Nigeria’s Problem, Removal Will Unlock Investment In Infrastructure – Reps Deputy Spokesman Agbese

The Deputy Spokesman of the House of Representatives, Dr Philip Agbese, has said fuel subsidy constitutes 50 per cent of the nation’s problem and its removal will usher the country to her glorious era in history.

Agbese, the member representing Ado/ Okpokwu/ Ogbadibo Federal Constituency, who spoke to newsmen in Abuja assured Nigerians that President Bola Tinubu’s removal of fuel subsidy is in their best interest.

Tinubu during his inauguration on May 29 had announced that the Federal Government will no longer pay subsidy on Premium Motor Spirit.

The lawmaker admitted that fuel subsidy has been a part of the nation since the 1970s, with the government routinely selling petrol to citizens at below cost to minimize the impact of rising global oil prices.

However, he noted that the outlay of subsidizing petrol has ballooned over time, adding that the regime has made a few richer.

Agbese said that available figures showed that the Buhari administration (2015 -2023) paid a subsidy of over N11.4trn, adding that this is more than what the government spent on education, health, and infrastructure during the period under review.

While acknowledging that President Tinubu’s decision to end the regime has come with hardship, he stated that Nigerians will celebrate in the long run.

He said, “President Tinubu must be commended for taking the bold step to save the future of our nation. Fuel subsidy was no longer attainable.

“It is on record that about N40.1bn is spent daily to subsidize every liter of petrol consumed in Nigeria by at least N600. It means the government spends about N1.24trn on fuel subsidy monthly.

“The country is in massive debt and would need more money to subsidize fuel. According to the World Bank, the government is projected to achieve fiscal savings of approximately two trillion naira ($2.6bn) in 2023, equivalent to 0.9 per cent of GDP. These savings are expected to reach over N11trn ($14.3bn) by the end of 2025.

“This will be invested in healthcare, education, and infrastructure. Indeed, the advantages of the removal of subsidy would not just come up immediately. It is not possible because the economy is not strong. We don’t have money to start implementing measures that will ameliorate the removal of the subsidy.

“However, we must look beyond the present. The future of our great nation is at stake. I want to commend President Tinubu for this brave decision. In a matter of time, Nigerians will smile”.