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Sunday, 15 May 2016

Charles Chukwuma Soludo, Ex CBN Governor on Subsidy.

"Let me illustrate with a few examples. First, there is this sense of ambivalence as to whether to remove petrol subsidy or not; and ... thumbnail 1 summary
"Let me illustrate with a few examples. First, there is this sense of ambivalence as to whether to remove petrol subsidy or not; and whether government is going to run refineries in competition with the private sector under a subsidy regime or deregulated pricing. I am convinced that PMB has the moral authority and legitimacy to quickly remove the subsidy and privatize the refineries. The fundamental case against subsidy removal is not economic: it is the fact that the citizens do not trust government to optimize the use of the proceeds for their welfare.

If PMB does not deal with these issues NOW, I wonder when, if ever. Now that private refineries are coming up, it is time to privatize public ones. It should have been done years ago. The huge benefits are not only economic, but also an anti-corruption move. Let government produce a credible agenda of reforms for the sector and let us have another focused public debate on this subject. You may be amazed that even the so-called ‘man in the street’ now understands that it no longer makes sense. The fiscal cost of keeping it is unjustifiable and unsustainable". Charles Soludo. Ex CBN Governor. See full text on the link below.

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