The Chief Executive Officer of Connected Development, Malam Hamzat Lawal, has spoken out against the continued payment of fuel subsidies by the Nigerian Federal Government. In a recent interview on Channels Television, he described the subsidy as unacceptable, stating that Nigeria spends over N50 billion every day on subsidies that favour the rich rather than the poor.
According to Lawal, “The poor are actually bearing the brunt. And we spend over N50 billion every day subsidizing the rich people who can actually afford it.”
Furthermore, Lawal urged the National Assembly to organize a public hearing to address concerns about the $800 million loan that President Buhari is planning to secure from the World Bank. In April, the Federal Government announced that the loan would be disbursed to about 50 million vulnerable Nigerians or 10 million households as part of its fuel subsidy palliative measures. The President recently wrote to the Senate, seeking approval for the loan facility.
However, Lawal believes that the loan is unnecessary and claims the public hearing could help ensure that Nigerians’ grey areas are addressed. In his words, “Taking a loan is not bad, but what do we do with this loan? People are poor. We have poor people, and it is not their doing that they are poor. And as a government, as people, we must care for these poor people.”
In addition, Lawal urged the Nigerian government to make use of the Open Government Partnership platform to promote transparency in its spending. Transparency in government spending could help ensure that subsidies are tailored towards benefiting the poor, rather than the rich.
In conclusion, Lawal has called on the Federal Government to reconsider fuel subsidies, redirecting the funds from subsidies, which favour the rich towards aiding the poor. The issues raised by Lawal’s interview highlights the need for a transparent, efficient, and sustainable subsidy system in Nigeria.
