Former Emir of Kano, Alhaji Muhammad Sanusi II, has said the
federal government is indulging in illegality by paying petroleum subsidy from
the federation account.
The former Central Bank of Nigeria (CBN) governor spoke
virtually as a panelist on Sustainable Development Goals (SDGs) at the just
concluded Nigerian Economic Summit held in Abuja.
He also said the Nigerian daily oil consumption data is
suspect thus there is endemic corruption in fuel subsidy payments.
“This money coming from petrol belongs to the federation
account, and the federal government doesn’t have the constitutional right to
pay subsidy on behalf of the federation.
“So it is a fundamental constitutional issue because this is
money that should go to the federal, states and local governments. Yet money
that belongs to the federation is carried out as federal government
expenditure. So, there are so many complex issues, legal and economic issues.
We need to stop these issues” he said.
He also advocated for the end of fuel subsidy and
electricity subsidy, saying the money saved should be invested in critical
sectors like education and health adding that the long-term gains far outweigh
the short-term pains.
“I have said this before even as a CBN Governor under the
previous government. What I say is not of a particular government. Take
petroleum subsidy.
“In 2015 or 2016, Minister Ibe Kachukwu said Nigerian was
importing 30 million litres of PMS per day after eliminating corruption. In
2019, the NNPC said we are importing 59 million litres per day after oil prices
have gone up. And I have been asking the question, what happened between 2015
and 2019 that our oil consumption has almost double?” he asked.
He noted that “this is what also happened under the previous
government. When oil prices go up, NNPC said they are importing more because of
the arbitrage. Thus, when the oil prices go high, there is an incentive to
inflate the number” he noted.
On electricity tariff, he said it should also be stopped as
even poorer countries are paying cost reflective tariffs and enjoying
uninterrupted electricity.
The Chairman, the Nigerian Governors Forum and the Governor
of Ekiti State, Mr. Kayode Fayemi, also agreed that subsidy payments had to end
for resources to be free up for critical investments.
He also said that the government must focus on education and
healthcare provision.
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