Tobi Adebayo
The Chief Executive Officer of CFG Advisory, Tilewa Adebajo has said the non-removal of fuel subsidy is detrimental to the economy of Nigeria.

Adebajo said this on Friday during an interview on Arise News monitored by THIS NIGERIA

The financial expert stated further that fuel subsidy was not sustainable, adding that it reduces the country’s revenue from petroleum products.

“The fuel subsidy issue in Nigeria is one of the biggest political issues we have. The same set of people currently in government were the ones who protested against the removal of fuel subsidy during the last administration. It is obvious that fuel subsidy is not sustainable.

“The General Managing Director of the Nigeria National Petroleum Corporation (NNPC) complained about the rising fuel price and said that the corporation can no longer sustain its remittances into the Federation Account. The higher the fuel prices go up, the more NNPC has to put aside subsidies. It will also lessen the revenue that will go to the Federal and State Governments.

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“It is clear now that one of the key structural reforms we have to make now is the removal of subsidy. Subsidies are detrimental to the economy. The easiest way to get Nigeria out of poverty is to grow its economy by 6-7% per annum. We do not have enough productivity to encourage the economy,” he said.

Tilewa Adebajo further called for the privatisation of the Transmission Company of Nigeria and added that it would increase the efficiency of the company.

“The Power sector has also been subsidized to the tune of $2.9bn annually. This affects the poor and favours the rich. The power sector reforms need to be put in place so that the distribution companies can make the necessary investments so as to be more efficient. It is also important that the FG privatises the Transmission Company of Nigeria to ensure its efficiency,” he stated.