A group, Project One Nigeria, has endorsed the plan of President Bola Ahmed Tinubu to remove fuel subsidies as one of his economic policies.
Tinubu had, during his inaugural speech at Eagles Square after he was sworn in as Nigeria’s 16th leader, said:
“Fuel subsidy is gone. Subsidy can no longer justify its ever-increasing costs in the wake of drying resources.
“We shall instead re-channel the funds into better investment in public infrastructure, education, and health care.”
Reacting to the announcement by Tinubu, the national coordinator of Project One Nigeria, Mohammed Mustapha Alfa, in a statement sent to journalists on Tuesday, May 30, stated that removing fuel subsidy has several advantages.
His words: “By removing subsidy, market forces can determine fuel prices, encouraging efficient consumption and investment in alternative energy sources.
“This can improve economic efficiency and promote a more sustainable energy sector.
“Removing subsidy will also free up public funds, allowing governments to allocate resources to other vital areas such as education, healthcare, infrastructure development, or social welfare programs.
“It will further contribute to narrowing budget deficits, improving fiscal sustainability, and reducing the need for government borrowing.”
Alfa advised the Tinubu-led government to redirect the saved funds from oil subsidy towards targeted social welfare programs.
He said the move would allow for more precise support to vulnerable populations, such as direct cash transfers and investments in education and healthcare.
He also warned against panic buying by Nigerians, noting that removing fuel subsidy will foster a more competitive environment, attracting private investments and promoting innovation in the energy sector.
“Increased competition can lead to lower prices, improved product quality, and enhanced service delivery,” he added.
He urged the new government to embark on careful planning, proper communication and targeted social protection measures to mitigate any adverse effects of the policy on Nigerians.
