News
FG Spends N1.5tr On Fuel Subsidy
Former Minister of Petroleum and Foreign Affairs, Mr Odein Ajumogobia has said that the Federal Government spent about N1.5 trillion on fuel subsidy.
Similarly, the Federal Government spent $3.5 billion to acquire 30 to 40 megawatts of electricity for the nation.
Speaking to The Tide during an interview at the Port Harcourt International Airport, Omagwa, Mr Ajumogobia said although the proposed removal of fuel subsidy by the Federal Government was painful, it would in medium and long term be beneficial to all Nigerians.
According to him, the N1.5 trillion spent on subsidy is an equivalent of the nation’s budget deficit, pointing out that if removed, the amount could be used to improve health services, education, alleviate poverty and meet other pressing needs.
He argued that the fuel subsidies were rather a help by the government to rich men and people to fuel their cars while the rest of the citizens are not benefiting from it. He said the move is not a sensible use of the country’s limited resources.
“Basically, in simple term, government is helping the rich people buy fuel for their cars. Subsidies are good but there are things we can subsidise to alleviate poverty and there are other pressing needs in the areas of health services, education amongst others”, Ajumogobia said.
He noted that the cost of transforming the nation’s economy was huge, pointing out that about $3.5 billion was required to get enough power for the country; an amount that can not come from nation’s budget but from private investors outside the country.
“That money can not come from our budget but from the private investors. President Goodluck Jonathan is poised to transform the environment in partnership with the private sector that will come from outside Nigeria, so diplomats have huge role to play”, the former minister insisted.
“We have a president Nigerians believe. He promised he will give us free, fair and credible elections, which he delivered and promised he will create a conducive environment in which investment can strive, which he did, he has had series of meetings with the private sector to ensure that business strives. With that kind of leadership, I think he has the credibility and sincerity to help Nigerians and to alleviate poverty”, he added.
Shedie Okpara
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