Taking out a $800 million loan from the World Bank to pay for a palliative for the elimination of gasoline subsidies in June, according to Muda Yusuf, director of the Centre for the Promotion of Private Business, is unusual.
Ms. Zainab Ahmed, the Minister of Finance, Budget, and National Planning, said during last week’s Federal Executive meeting that Nigeria has obtained $800 million from the World Bank for post-fuel subsidy withdrawal palliative for Citizens.
She claimed that the social intervention programme will benefit more than 50 million Nigerians.
But in response to the minister’s suggestion, Yusuf said in an exclusive interview with Obasanjonews24 on Monday that historically, gasoline subsidies had not required borrowing since it had been standard procedure to pay for palliatives with the money saved from the subsidy withdrawal.
Yusuf was certain that the elimination of gasoline subsidies and palliatives should be left to the future Administration.
“First off, any discussion about eliminating subsidies and palliatives should be left for the new Administration.
We have utilised palliatives connected to subsidies, but none entailed borrowing. The present proposal is somewhat peculiar because historically, palliative care was paid for with the money saved from subsidy elimination, the expert said.
Before the new government was sworn in, President Muhammadu Buhari made a hint about his intention to end petroleum subsidies. Yet, this stance has come under harsh criticism from the Nigeria Labour Congress and other labour groups.
