Dr Akinwumi Adesina, the President of the African Development Bank (AfDB), has expressed concern that fuel subsidy is crippling Nigeria’s economy. Speaking at a lecture in Abuja on Saturday, he said that only the wealthy are benefiting from this subsidy which cost the Nigerian government $10 billion in 2022 alone. He deplored the fact that the federal government was funding the extravagant lifestyle of the rich through these payments.
Adesina revealed that the annual cost of this subsidy payment had been mindblowing. According to him, the funds spent on fuel subsidies could be better channelled into developing the private sector. He advised Bola Ahmed Tinubu’s administration to invest massively in the private sector instead of funding fuel subsidies.
“Estimates show that the poorest 40 percent of the population consume only three percent of petrol” Adeshina added.“The cost of governance in Nigeria is way too high and should be drastically reduced to free up more resources for development.”
The AfDB President also lamented that Nigeria was spending very little on development, stating that the country was ranked among those with the lowest human development index globally. This should be a source of concern for the government as well as Nigerians as it highlights areas that need to be urgently improved for the country to prosper.
