Set Up Skills Acquisition Centres With Fuel Subsidy Palliative, Uwaleke Urges FG

The Nigerian government plans over N1.1trn palliative to ameliorate the sufferings induced by the fuel subsidy removal but the president of the Association of Capital Market Academics of Nigeria (ACMAN), Professor Uche Uwaleke, has warned that the funds should not be shared in cash to citizens.

The economist suggested that the funds should be shared across the 774 Local Government Areas for the establishment of “massive skill acquisition centres.”

Since fuel subsidy described by President Bola Tinubu as the ‘big elephant in the room’ was removed, life has been unbearable for Nigerians.

Inflation has taken a new dimension as businesses and service providers have hiked their prices. Transportation cost has almost doubled.

The prices of fuel is currently above N500 across the country.

On Wednesday, President Bola Tinubu wrote to the House of Representatives seeking approval to provide N500bn palliative to the citizens.

The letter sought to amend the 2022 Supplementary Appropriation Act to accommodate the N500bn.

In addition to the amount, the World Bank had approved $800m or N600bn converted at N750/$ totaling N1.1trn.

Uwaleke said in a reaction sent to THE WHISTLER that the request made to the Representatives to utilize N500bn for palliatives to cushion the impact of the fuel subsidy removal is in order.

He urged the National Assembly to give it favourable consideration as speedily as possible.

He said, “Although the nature of the palliatives was not indicated, as much as possible, the government should look into the direction of non-cash palliatives in the utilisation of such funds.”

The immediate past administration had requested for a loan from the World Bank for $800m to be shared as cash to about 10 million households.

Uwaleke said, “Consistent with the principle of maximum social benefit in public expenditure, one way, in my view, to ensure this money reaches the grassroots is to divide it by 774 which translates to about N1.4 billion and transfer this sum to each Local government.

“An optimal way to ameliorate suffering is via sustainable jobs. So, this money can be utilised as initial capital to establish massive skill acquisition centres in every LGA. The construction of these centres will generate huge job opportunities in the LGAs and help to reverse rural-urban migration.”

The Professor said that the fund would be managed by the communities through traditional and religious institutions.

He further advised the government to partner the private sector in the area of mass transit schemes.