Prof. Chukwuma Soludo, the governor of Anambra State, has spoken out against the continuation of payment for fuel subsidies in Nigeria.
Soludo, who spoke at the World Bank group’s Nigeria Development Update, NDU, launch in Abuja on Tuesday, said the remedies to Nigeria’s challenges were simple and not far-fetched.
In the first five months of 2022, the Nigerian National Petroleum Corporation (NNPC) Limited, stated that payments for petrol subsidies cost the Federation Account N1.217 trillion.
However, according to Soludo, gasoline subsidies should be paid by the federal government rather than by the states.
He further said that the subsidy should have been eliminated ‘like yesterday,’ and that its failure to do so could result in the Central Bank of Nigeria (CBN) spilling money.
The Governor said, “Federal government decides that it wants to subsidise Premium Motor Spirit, PMS, why do you have to charge it from the subnational states? You should charge it from the revenue of the federal government.
“We need to have this conversation, the politics, and structure of the government and so on. We cannot do the same thing over and over again and expect the same result; it’s not going to happen. We’ve had this analysis for a decade, the same analysis and conclusions of what to do.
“Remove this subsidy like yesterday, this ought to have been removed like yesterday. If we continue with the subsidy, Central Bank will continue to spill money. The solutions are pretty obvious. What we need to do is to be committed to it.”