How Tinubu Should Spend Over N1 Trillion Saved From Subsidy Removal On Nigerians

How Tinubu Should Spend Over N1 Trillion Saved From Subsidy Removal On Nigerians

The Abia governor proposed ways the Federal Government can utilize savings from the removal of petrol subsidy, among others, to assist the vulnerable Nigerian population that is most impacted by the subsidy removal.

He made the proposal in a public lecture he delivered titled “Fuel Subsidy Removal: Dealing with the Challenges, Harnessing the Opportunities” during the 63rd Founders’ Day celebration at the University of Nigeria, Nsukka.

Otti recommended that at least 25% of the approximately N1 trillion saved from last year’s expenditure due to subsidy removal should be allocated to support 20 million impoverished Nigerians for 5 months.

He said,“To support MSMEs, which are critical engines of economic growth, we recommend that LGAs, states and the federal government must channel a part of their receipt from subsidy savings to that segment.

Again I would recommend 25%, to support MSME businesses through training and capacity building, exposure to local and domestic markets, infrastructure support and lastly, provision of structured financing to existing and intending entrepreneurs

This way, the governor said the government would be able to combat youth unemployment, reduce poverty rates, and enhance the nation’s public infrastructure.

He stressed the urgency of increasing power generation capacity from various sources and learning from successful strategies employed by other developing economies with similar demographics and economic systems.

Additionally, Governor Otti called for incentives to encourage private sector players, including major oil companies like NNPCL and NLNG, to invest in the electricity sector.

Governor Otti concluded his address by highlighting the “golden opportunity” for local refining of petroleum products now that subsidies have been removed, allowing market forces to operate more freely.

He encouraged investors to explore this opportunity by building modular and standard refineries, considering the market dynamics and business viability.