Governor of Kaduna State, Nasir El-Rufai, has said state governments were ready to support the Federal Government in the elimination of fuel subsidy regime.
He gave the assurance in Abuja, yesterday, at the presentation of the World Bank Nigeria Development Update, November 2021 edition titled “Time for Business Unusual.”
El-Rufai, a panelist who joined virtually, said that if the regime of fuel subsidy was not eliminated, 35 out of the 36 states of the federation may not be able to pay salaries in 2022.
According to him, kerosene which matters most to the masses had been regulated without any hitches, while diesel which was most important to transporters had also been regulated for a long time.
“This hullabaloo about petrol is something that we must as a country have a conversation and agree that it has to end. We cannot continue to provide petroleum to our neighbouring countries, which is what we are doing. Why are we doing this? For whom are we doing it? Who is the beneficiary? Which is the cabal that is the beneficiary of this and why should they hold this country to ransom and bankrupt the Nigerian economy?
“Right now, we are losing N250 billion a month and this has to end. State governments are committed to supporting the Federal Government on this. We do our bit, engage stakeholders and put the facts on the table so that everyone understands the danger the country is in if the subsidy continues, as well as the benefits that will accrue.
“Not only to the budgets of the states and their capacity to deliver social services, but also what will go directly to the pockets of the poorest Nigerians that will bear the brunt of any withdrawal of subsidy. This is the position of the state governments and we met just a few days ago to take this position.”
El-Rufai said that the governors saw the dangers in continuing on the path of petroleum subsidy and support policy measures needed to improve the fiscal situation, such as price stability.
This, he said, was by ensuring that there was alignment of the exchange rate and good coordination between fiscal and monetary policy.
Mr. Shubham Chaudhuri, World Bank Country Director, said even though Nigeria’s economy exited a pandemic-induced recession, several challenges persist including double-digit inflation, declining incomes, and rising insecurity.
“While the government took bold policy measures to mitigate the impacts of the COVID-19 crisis, the reform momentum has slowed which hinders Nigeria’s ability to reach its growth potential.”