A University Don, Olanrewaju Aladeitan, says before removal of the fuel subsidy, it is expected that ideal things, including fixing the refineries to be functional, should be done for optimal benefit.
The lecturer warned that the removal of subsidy on Premium Motor Spirit (PMS), called fuel, without proper planning to cushion the effects would cause an untoward hardship on the citizenry.
Aladeitan, an Associate Professor of Energy and Natural Resources, University of Abuja, made this known in Abuja on Monday.
The National Economic Council (NEC) had agreed that the timing for the removal of oil subsidy should not be now but said preparation work has to be done in consultation with the State Governments and other key stakeholders.
Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, had said that it had expanded the subsidy removal committee to include teams from the incoming administration and the state governors.
Aladeitan said “proper planning and operational refineries would enable us to benefit from the competitive advantage of being a producing country.”
He said the inability of the government to have met that very significant milestone of fixing the refineries and yet wanting to proceed with the removal of subsidy was an important reason why NEC may have suspended the process, so as not to create an unnecessary burden on the incoming administration which already has its own baggage which could be worsened by labour resistance and mass protest.
According to him, looking at the humongous amount spent on PMS subsidy, the response by anyone would be an immediate removal of subsidy.
This, he said, would allow the market forces of demand and supply to determine the price of the commodity.
“By so doing, the country will free up funds for the much needed infrastructural development.
“However, it is not that simple, considering the pivotal role which the price of PMS plays in the Nigerian economy,” he said.
