Fakoyejo OlalekanThe Governor of Kaduna State, Nasir El-Rufai, has revealed why he is in support of the removal of fuel subsidy, stating that the country spends more on subsidising petrol than building infrastructure.
El-Rufai said in 2021, the Federal Government budgeted N200 billion for roads but projected to spend N1.2 trillion on subsidy.
Join our WhatsApp ChannelHe stated the government now plans to expend N6 trillion on subsidy this year, but spend less on health and education during the same period.
The governor argued that the funds disbursed to subsidise fuel could be used to develop infrastructure. He made this known during a symposium hosted by Agora Policy and the Carnegie Endowment for International Peace, on Tuesday, 9 May.
“We worked with experts and World Bank and came out with a report on what to do with the resources which would be transparently explained to Nigerians.
“In 2021 the Federal Government ‘s budget for road was N200 billion and in 2021 we were projecting to spend N1.2 trillion on subsidy and we saw the danger and I called for its removal.
“We have a framework and the economic council agreed for it to be withdrawn because we had a clear plan on where the money should go which include federal, state and local government for interventions.
“Still it is on and currently we are looking at N6 trillion on subsidy but go and check the national budget on infrastructure on health and education, it is not up to that and does not make any sense, so we need to end the subsidy,” El-Rufai said.
Recall that the government initially planned to remove the fuel subsidy in January 2022, but postponed the removal till June 2023.
However, the government is now contemplating on postponing the removal, as President Muhammadu Buhari said while the removal made economic sense, it doesn’t make social sense.
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