LCCI Backs Subsidy Removal

The Lagos Chamber of

Commerce and Industry (LCCI) said on Thursday that it supported the removal of subsidy on petrol, because of its long term benefits.

The LCCI, however, urged the Federal government to ensure accountability and transparency in the use of the funds that would accrue from the programme.

The LCCI, which made the remarks in a statement by its President, Mr Goodie Ibru, appealed to the Federal Government to ensure that the funds were used for the set goals.

According to the statement, the Chamber understands the enormity and dimensions of the impact of this policy on the economy and the citizens.

It said that the chamber was optimistic that it would benefit the people on the long run, if the proceeds were judiciously managed.

The LCCI urged the government to take the promise made to use the savings judiciously as a covenant and a bond that should be respected.

The chamber appealed to the government to protect the citizens from exploitation by petroleum product marketers.

“The government should accelerate the delivery of its palliative measures and ensure stable power supply to cancel the current situation whereby individuals and firms generate electricity by themselves,” it said.

It urged the government to reduce the cost of governance, corruption and sustain its dialogue and enlightenment campaigns to stabilise the polity.

It charged the government to fast-track the turnaround maintenance of refineries and build new ones, to reduce the nation’s dependence on importation of refined products.

The LCCI appealed to all stakeholders to cooperate with the Subsidy Reinvestment Board to achieve the desired goals.

According to the statement, if the programme is well implemented, there will be an increase in private investment in the downstream sector, macroeconomic stability and reduction of capital flight.

It, however, cautioned the government on some of the adverse consequences such as high inflationary rates.

“The programme will also cause sharp increases in the operating costs of micro and small enterprises because all depend on generators to get electricity,” it said.