LEGIT
• Bismarck Rewane, a prominent Nigerian economist has stated that the fuel subsidy in Nigeria has not been completely removed
• He noted that President Tinubu only implemented a reduction in the subsidy to keep fuel prices lower than they would be without any subsidy
• Rewane also called for comprehensive reforms in various institutions, including monetary, fiscal, justice, and security, to fully benefit from democracy
Bismarck Rewane, a prominent Nigerian economist and member of the Nigerian Economic Advisory Council, has asserted that Nigeria has yet to remove the fuel subsidy.
According to Rewane, the current government has only implemented a reduction in the subsidy rather than its complete removal.
He made these remarks during an interview on Channels Television’s 2023 Democracy Day program.
REWANE’S COMMENTS ON FUEL SUBSIDY
Rewane explained that if the subsidy were completely removed, the price of fuel would be significantly higher than the current rate.
He also noted that the Nigerian National Petroleum Corporation (NNPC) Limited will be selling fuel within a price range of N488 to N568.
In his own words, Rewane stated:
“The truth is that the subsidy has been reduced. If the subsidy had been removed, then the price of petrol, as you see it today, would be much higher than it is.”
REWANE COMMENTS ON ECONOMIC ISSUES
Rewane also underscored the importance of addressing multiple issues simultaneously rather than adopting a piecemeal approach.
He added that with the “fuel subsidy removal,” inflation should go as high as 25 percent in June and 28 percent in July.
“You cannot focus on individual aspects alone. You cannot fix the interest rate and ignore the exchange rate.
You cannot address petroleum subsidy and neglect debt. It has to be a comprehensive package”.
