Nigeria not ripe for subsidy removal, naira floating - Group tells Tinubu

A coalition of civil society organisations, The Osun Masterminds, TOM, have called on President Bola Tinubu to return fuel subsidy in a bid to reduce suffering Nigerians are experiencing.

The group disclosed that the dual policy of subsidy removal and floating of the Naira of the present administration is responsible for the excruciating hardship the masses are presently going through in the country.

Speaking with Journalists in Osogbo at the weekend, the group's Executive Director, Professor Wasiu Oyedokun-Alli said Nigeria is not ready for floating of the Naira and removal of fuel subsidy simultaneously.

All facts and statistics point to the fact that Nigeria was not ready for both policies - fuel subsidy removal and Naira floatation. A World Bank study affirmed that complete removal of fuel subsidy (excluding kerosene) alone, increases economy-wide inflation by 3.4%! This clearly explains why our inflation figures continue to climb without any respite in sight.

In a bid to curtail inflation however, the CBN has continued to increase interest rates, arriving at the current 27.25%. This, while it appears on paper like a workable way to control inflation, it also a sure way to discourage Private sector's  players. With Nigeria's  worsening rate of unemployment, a demoralized Private Sector is a terrible thing to happen to Nigerians.

In the light of all the above, they  are calling on the Federal Government, under President Bola Tinubu, to immediately implement the following before things spiral out of control:

End the floatation of the Naira and revert to a CBN-guided pricing that will be devoid of corruption and the sharp practices that characterized the CBN under Godwin Emefiele.

Where  ending Naira floatation is not possible, return subsidy on petrol and ensure transparency, until a time in the future, when Government  has  put proper structures in place to manage the consequences of total removal.

Put more resources into strategic subsidies for common Nigerians instead of sharing more money to the States, which ends  up financing the reckless lifestyle of many of the Governors.