Energy Prices Must Come Down: Ex-Nigerian Governor Calls for Economic Productivity
In a recent interview on Inside Sources with Laolu Akande, a socio-political programme aired on Channels Television, former Cross River Governor Donald Duke urged the Nigerian government to reduce soaring energy prices to boost economic productivity.
Duke criticized the current administration for its decision to remove subsidies on petrol and electricity, labeling it a "fundamental error" that is not sustainable for the Nigerian people. He emphasized that the key to enhancing productivity is reducing energy prices, stating that if people become more productive, the economy will grow even further.
According to Duke, four factors affect inflation in Nigeria: high energy costs, over-inflated contracts, ill-distribution of wealth, and high interest rates. He argued that the economy must be reformed to put people first, focusing on domestic production and reducing imports.
Duke also attributed the current economic crisis to the removal of petrol subsidy and the unification of forex windows. He pointed out that skyrocketing energy prices have forced international manufacturing companies to exit Nigeria, citing the examples of companies such as Kimberly-Clark, Procter and Gamble, GlaxoSmithKline, Unilever, and Sanofi-Aventi Nigeria, who have all left the country in recent months.
The former governor advocated for domesticating energy prices for local refineries and industries, stating that this would reverse the import-dependent status of Nigeria and make the country more productive. With Nigeria’s population growing by 230 million people annually, Duke believes it is crucial to shift from an import-dependent economy to a productive, manufacturing, and agrarian economy.
Duke’s concerns come as Nigeria continues to grapple with its current economic crisis, which is sparking widespread discontent and dissatisfaction among citizens. The government’s twin policies of petrol subsidy removal and unification of forex windows have led to a surge in inflation and economic uncertainty, further highlighting the need for effective economic reforms to drive productivity and growth.
