…By Lola Smith for TDPel Media.
President Tinubu’s Proposal and Reactions:
President Bola Tinubu’s proposed N500 billion palliative to offset the impact of fuel subsidy removal continues to spark reactions from various quarters.
Within 24 hours of the proposal becoming public, different opinions have emerged, with some expressing support for the President’s move, while others, such as the Nigeria Labour Congress (NLC), have voiced their opposition.
The Proposal and Request for Approval:
In a letter addressed to the House of Representatives on Wednesday, Tinubu sought approval for the allocation of N500 billion to mitigate the effects of petrol subsidy removal.
The President proposed an amendment to the 2022 Supplementary Appropriation Act, citing the necessity to provide funds for palliatives in light of the subsidy removal.
Clarity Needed on Fund Utilization:
The Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Olusola Obadimu, commended the President for the idea of providing palliatives for low-income individuals.
However, he raised concerns about the lack of information regarding how the proposed fund would be spent.
NACCIMA will refrain from further comments until clarification is given on the scope and utilization of the fund.
Insufficient Amount and Private Sector Involvement:
Gabriel Idahosa, the Deputy-President of the Lagos Chamber of Commerce and Industry (LCCI), welcomed the idea of palliatives but pointed out that the proposed amount is insufficient to fully offset the impact of subsidy removal and currency devaluation.
He expressed the need for the private sector to be involved in the distribution of palliatives, emphasizing that it should not be limited to the public sector.
Borrowing as a Means to Provide Palliatives:
The President of the Nigerian Economic Summit Group, Mr. Laoye Jaiyeola, defended the President’s proposal, stating that palliatives are necessary for those affected by the subsidy removal.
He highlighted that the President cannot spend any amount without approval and, considering the existing deficit, borrowing becomes the viable option.
Jaiyeola emphasized the importance of ensuring that the palliatives reach the most affected individuals rather than being concentrated in specific areas.
Conclusion:
President Tinubu’s proposed N500 billion fuel subsidy palliative has evoked diverse responses.
While some appreciate the idea of providing relief to those impacted by the subsidy removal, concerns regarding fund utilization, insufficiency, and private sector involvement have been raised.
Clarification is awaited on how the funds will be allocated and who will benefit from the palliatives, ensuring that they reach the most affected individuals.