[size=14pt]Sanusi Seeks Removal of Fuel Subsidy[/size]

Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi yesterday urged the Federal Government to curb a major part of its wasteful expenditure pattern by removing the subsidy on petroleum products imported into the country.
Sanusi argued that the policy of subsidizing fuel importation has not been beneficial to the masses but has merely enriched a few privileged Nigerians.

His call for fuel subsidy removal came as the Minister of Finance Olusegun Aganga disclosed that Nigeria ’s external debt profile has risen to $4. 3billion and warned against unnecessary borrowing by governments at all levels.
The duo made their positions known in separate presentations at the National Workshop on the Processes and Procedures for Obtaining Local and Foreign Loans by Federal and State Governments.
The workshop was organised by the House of Representatives Ad Hoc Committee on Investigations into Foreign and Local Loans in collaboration with the CBN, Debt Management Office, Nigeria Stock Exchange, Securities and Exchange Commission and the Office of the Accountant-General of the Federation.

Sanusi, who decried the retention of fuel subsidy despite the overwhelming evidence of its negative impacts on the economy, disclosed that the Federal Government had often times borrowed to pay subsidy debts to the “cabal” in the oil sector.
The CBN governor disclosed that the Federal Government spent over a trillion naira on subsidy last year while another N570 billion may be expended on the same this year.
“The money is going to a cabal. These are the same people that borrow from the banks and do not pay; they are the ones rigging elections and are aiding corruption. We have to cut them off,” he said.

Besides the removal of subsidy, Sanusi said the Federal Government needed to plug the numerous loopholes in its revenue chain to avoid a situation where the country is forced into borrowing when it could have conveniently executed its programmes with better monitoring of its revenue collecting agencies such as the Nigeria Customs and Excise and the Federal Inland Revenue Service.
He also advised government to keep a tab on its domestic debts, adding that it would not be enough monitoring only the foreign debt portfolio. According to him, increased domestic debt may also lead to serious economic problems as the government will then be borrowing every year to service these local debts.

The minister of finance, who gave an update on Nigeria debt profile, said at the end of 2006, the country’s debt burden was only $3.54 billion, a huge improvement from the $35.94 billion position before Nigeria exited from the Paris Club of Creditors in 2005.
However, by December 2007, it had risen to $3.67; by 2008, $3.72; in 2009, $3.62 and by March 2010, it has grown to $4.3 billion.
Similarly, the country’s domestic debt has risen to N2.4 trillion.
Aganga, who allayed the fears of stakeholders over recent borrowings, explained that the current external loan portfolio was mainly concessionary loans with long repayment periods.
He, however, warned that the country needed to set its priorities right to avoid returning to the pre-2005 days of huge debt burden.
In a keynote address delivered at the opening of the workshop, House Speaker Dimeji Bankole explained that the workshop was not designed to stop government from borrowing but to ensure that the country is sufficiently insulated from those ones that are unecessary.

“We are not on any mission to decree against borrowing whether foreign or domestic but we are persuaded that borrowing, where inevitable, should be functional, productive, backed by value and in optimal cases self liquidating,” he said.

Sanusi, who decried the retention of fuel subsidy despite the overwhelming evidence of its negative impacts on the economy, disclosed that the Federal Government had often times borrowed to pay subsidy debts to the “cabal” in the oil sector.
The CBN governor disclosed that the Federal Government spent over a trillion naira on subsidy last year while another N570 billion may be expended on the same this year.
“The money is going to a cabal. These are the same people that borrow from the banks and do not pay; they are the ones rigging elections and are aiding corruption. We have to cut them off,” he said.

freezy:

Was it not the same subsidy that has been regularly removed over the years which was responsible for the increment in the pump price of petrol from N3.50 => N11 => N22 => Forty something => N70 and then N65 because the barrel price dropped internationally?

If it wasn't subsidy that was removed, why the astronomical price increase(s)?

If it was subsidy, how come it is being removed over and over again? Does it have a way of creeping in through the back door?

If that is the trend, methinks subsidy will be removed now (again), and in a few years, someone'd come up saying govt has been subsidizing all along! Subsidy woulda crept in again.

The earlier we stop importation, outsource the refineries, build and outsource more refineries, we are still coming back to this same spot.

So dear Mr CBN [s]'Big Mouth, Press Loving, Attention Seeking'[/s] Governor, if you have so much energy (and resources, I hope) to spare, you might wanna pay attention to the bolded part above and let us hear word, abeg.

Dis Guy:

is that what you employed him for? what has obaseki, obj and several southerners in charge of petroleum sector done with regards to the bolded part? when Aganga, G jonathan, soludo said the same thing it makes sense when aboki man says it you dismiss it

Bukittes:

Why won't people mind their own business and their own sectors for Christ's sake? Let him go and solve all the banking epileptic problems before chuking his nose in other peoples pot of soup abeg!!!

freezy:

Sir,

I just looked through my post again and I did not see any part of it indicating an aboki's perspective. This is not the first time I've commented on the continuous removal of fuel subsidy.

I'll plead with you not to tribalize this thread, so sensible comments can come in.

One last thing: Was he employed for the Power & Aviation industry? I guess your response 'll be 'No' But have you observed how much he has made available to these industries recently?
Ponder on that, then you'll prolly understand my points above.


Thanks

The  workshop was  organised by the House of Representatives Ad Hoc Committee on Investigations into Foreign and Local Loans in collaboration with the CBN, Debt Management Office, Nigeria Stock Exchange,  Securities and Exchange Commission and the Office of the Accountant-General of the Federation.

Akanbi_edu:


You don't have to mention aboki specifically for us to know your mindset.

It's like some guys didn't read the post before commenting:

Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi yesterday urged the Federal Government to curb a major part of its wasteful expenditure pattern by

i think its time we introduced 'austerity measures' to our governments, they spend like wide fire burns, and never have excreta to show.