Dr. Akinwumi Adesina, President of the African Development Bank, has criticized the Federal Government’s (FG) gasoline subsidy policy, claiming that it solely favors the wealthy.
On Saturday, at the presidential inaugural lecture in Abuja, Adesina stated that the continuing payment to subsidize petroleum goods is hurting the Nigerian economy.
According to him, gasoline subsidies alone will cost Africa’s most populous country $10 billion in 2022.
He explained that Nigeria continues to borrow for purposes that should not be borrowed for, urging that such funds be directed toward national development.
“The place to start therefore is to remove the inefficient fuel subsidy. Nigeria’s fuel subsidies benefit the rich, not the poor, fuelling theirs and the government’s endless fleet of cars at the expense of the poor,” Adesina stated.
“Estimates show that the poorest 40 per cent of the population consume just three per cent of petrol.
“Fuel subsidies are killing the Nigerian economy, costing the economy of Nigeria $10 billion in 2022. That means that Nigeria is borrowing what it doesn’t have to borrow.”
Rather than spending billions of dollars on crude oil, the AfDB president urged the federal government to encourage private-sector refineries and modular refineries for efficiency and competitiveness.
According to him, the action is vital to reduce the price of petroleum goods at the pump.
He praised President Muhammadu Buhari’s administration for recently commissioning the Dangote Refinery in Lagos, claiming the initiative will transform Nigeria’s economy.
Adesina also praised Africa’s richest man, Aliko Dangote, for spending $19 billion in the country’s refineries.
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