Oluseun Onigbinde, activist and founder of BudgIT, Nigeria’s civic tech organisation, has counselled the federal government on tackling the impact of the fuel subsidy removal.
While stating that he supports the policy, Onigbinde noted that the government must start implementing procedures to ease the burden on citizens.
”My single argument for subsidy removal is that the Nigerian government can no longer afford it from a fiscal perspective.
”We have used Federation receipts, Excess Crude account, Eurobonds, NLNG dividends etc., to pay for subsidy, and the whole inefficient arrangement needs to stop,” he further stated.
Onigbinde listed his suggestions to include:
1) Offer an improved minimum wage
2) Subsidize public transport systems
3) Offer options to tackle food inflation before the removal of fuel subsidy
4) Be ready to deal with trust by reducing the cost of governance
5) Make the civil service more efficient
6) Introduce fiscal reforms
7) Ensure contracting efficiency at all levels of governance.
He further stated that:
‘’The burden can’t be on Nigerians alone. It must be shared.’’
He restated that his earlier position in public fora that he is for exchange rate unification except for fuel. Applying the twin approaches can be overwhelming.
He continued:
”That’s why I asked for a discounted rate for fuel imports and crude swaps for verified importers. The final pump price will still have no subsidy.
”And if this doesn’t work, it might be time to tell them to pay at full free market rates.
”As long as public expenditure is inefficiently managed through a tenderpreneur system, nothing will ever be enough.
”And whatever gains come from the subsidy (NNPC & partners to remit the cost of crude in Naira), should be used to pay the workers an improved living wage.”
