FUEL SUBSIDY REMOVAL!!
Elimination of fuel subsidy is an excellent plan if there is truthfulness with the process, and it’s carried out transparently. However, these concepts of distribution foodstuff are entirely incredible, it’s certainly repulsive to the senses of Nigerians,
It is essential to carry out practical solutions to alleviate the likely socio-economic impact. Here are some of my thoughts on strategies that should be considered:
Targeted Communal Spending:
Apply the revenue gained from removing fuel subsidies to invest in communal programs that benefit the most vulnerable populations. This can include initiatives such as poverty alleviation programs, healthcare, education, and infrastructure development.
Reduction in Ineffective Taxes:
Manage the revenue gain to reduce ineffective taxes that may burden businesses and individuals. This can help stimulate fiscal growth and improve competitiveness.
Useful Investments: Allocate the fund towards constructive investments that can contribute to long-term fiscal development. This can include expenses in renewable power, viable infrastructure, and technology innovation.
Power Security: Removing fuel subsidies can reduce electricity security concerns related to volatile fossil fuel supplies. It provides an opportunity to diversify power sources and promote the use of cleaner and more viable alternatives.
Price System: Implement a market-driven pricing system for petroleum products. This fosters healthy competition and encourages efficiency in the power sector.
Environmental Impact: Fuel subsidy reform can contribute to reducing greenhouse gas emissions and support global efforts to tackle climate change. It provides an opportunity to transition to cleaner and more sustainable potential sources.
Tax Reform: Consider carrying out fuel tariff reforms that generate revenue while being fair to consumers. This can facilitate fund initiatives to respond to and recover from crises, such as the COVID-19 pandemic.
It is critical to note that the specific solutions may vary depending on the State’s context and priorities. Carrying out a comprehensive and well-planned strategy will further minimize the negative impact of fuel subsidy removal and promote sustainable and fair outcomes.
Otunba Abdulfalil Abayomi ODUNOWO.
