The former Minister of State for Finance, Dr. Yerima Lawan Ngama has defended the removal of fuel subsidy by the federal government. According to him, subsidy removal, could attract more foreign investments and subsequent release of more funds to build more infrastructural facilities in the roads, rail and power sectors. While defending subsidy removal Sunday in Damaturu, the Yobe state capital, the ‘economist turned politician’ disclosed: “Despite the economic difficulties in fuel price hikes, the decision to abolish Nigeria’s fuel subsidy is the right economic decision taken,” noting that payments of subsidy on fuel consumption; has scared many local and foreign investors. “It is the rich; and elites that are enjoying from cheap fuel for over two decades,” he said. Continued; “The subsidy continues to crowd out other economic developmental expenditures. “The costs of importing fuel has also continued to grow exponentially without any trickle down effects on the poor.” He said the federal government expends over N1 trillion annually to service both domestic and foreign loans. “We cannot continue like this,” he warned. Speaking on fuel subsidy benefits to the poor, he said: “During the wake of the global financial crisis occasioned by coronavirus (COVID-19) pandemic and increasing sovereign debt risk, financing for development is drying up. “Nigeria must now look inwards in financing its economic growth and developmental needs in urban and rural centres of the country. “If Nigerians want good road and rail networks, healthcare delivery services and other basic needs of life, then they must endure the current economic hardships.” The ex- Peoples Democratic Party (PDP) chieftain also stated that the new fuel pump price of N160 a litre is cheap considering; real price paid for petrol in Saudi Arabia and other Oil Producing Export Countries (OPEC). He said that a litre of petrol in Saudi Arabia, which is also member of OPEC, is N200. While lamenting subsidization of fuel for decades, he said: “When I was a Minister under Jonathan’s administration, we advised the government to remove the subsidy. “Subsidization of petroleum products, was a scam, as only a few individuals were just enriching themselves from it, because of some interest,” noting that the government failed to accept their advice. According to him, Nigerians are paying for the costly mistake of sustaining fuel subsidy for over two decades.
