Investment In Infrastructure Will Cushion Negative Impact Of Subsidy Removal—Expert

The Federal Government has been urged to increase the level of investments in infrastructure development to cushion the negative impact of fuel subsidy removal.

Oil Marketers had on Thursday adjusted their pump price of Premium Motor Spirit from N148.5 per liter to about N161 per liter.

The adjustment in price by the marketers followed the increase announced on Wednesday by the
Petroleum Products Marketing Company, of the ex-depot price of Premium Motor Spirit, also known as petrol, to N151.56 per litre.

The PPMC, which is a subsidiary of the Nigerian National Petroleum Corporation raised the price from N138.62 per litre which it was previously to the new price of N151.56 per liter.

Speaking at TVC News Business Nigeria Programme monitored by THE WHISTLER, the Senior Partner, Primera Africa, and Legal Director Aspen-Energy, Isreal Aye, backed the Federal government on the removal of subsidy, adding that resources should be chanelled towards promoting investment in infrastructure and ensuring economic growth.

He noted that funding under-recovery has remained a challenge for the government as it was affecting the funds that should have been channeled for various developmental projects.

He said that indirectly, Nigerians have been paying for subsidy through absence of infrastructure to drive development, absence of seed funding to start new businesses and to grow them.

Aye said, “The Executive does not have the strength to fund under recoveries as a result of this policy change.

“We need to start asking ourselves, do we really need to put anybody under pressure to fund this.

“If we are not allocating N1trn to funding under recoveries, I think Nigerians at all level should ask and know how the money is being spent. My take is that Nigerians should demand good governance”.

Speaking further, Aye said it would be counter-productive if resources that are pulled out from fuel subsidy are not spent in ways that ensure growth and infrastructure development across the country.

“We should focus on investing in the future and not eating every thing today.

“With the fundamentals of the Nigeria economy, it will not take this country too long to be transformed.

“So good governance and accountability remain the issue in Nigeria and that is what we should be looking out for,” he concluded.