Restore subsidy now to stabilize
Nigeria’s economy- Don urges Tinubu
Ogbonnaya Ikokwu, Umuahia
A Professor of Banking and Finance from the Michael Okpara University of Agriculture Umudike in Abia State, Professor Sebastian Uremadu, has called on President Bola Tinubu, to restore subsidy on petroleum products, in order to rescue Nigeria from its current economic woes.
The academic Don who gave the advice while delivery the 60th inaugural lecture of the University on Wednesday added that sharing money as palliatives will not solve the problems created by the removal of fuel subsidy.
Speaking on the topic: Trade-off: Profitability Vs Liquidity in Nigeria Investment Environment”, the Inaugural lecturer maintained that giving palliatives to citizens to cushion the effects of subsidy removal on the economy would rather exacerbate the situation rather than proffer a solution.
He said, “The beneficiaries of money as palliatives from government will never invest such money in any economic activity that will help revive the economy, they will always spend such money and wait for the next tranche.
“Fuel is a variable that touches on every sector of the economy and whatever affects the price of fuel affects the price of other commodities in the country. There is no country that does not have a form of subsidy. American has subsidy on agriculture products, but the unilateral removal of petroleum subsidy by the President Tinubu has triggered hyperinflation and economic instability in Nigeria.
“I want President Tinubu to succeed because I have friends serving in his government and they are some good policies he has introduced, but let him restore subsidy, once that is done the inflation and exchange rate will come down”.
The professor also blamed the hardship in Nigeria on multiple taxation, regretting that it scares investors.
He urged the federal government to create a friendly environment for investors to inject the needed funds for Nigeria’s economy to recover by checking multiple taxation.
“For us to recover, the President has to remove multiple taxation; pursue effective fiscal policies; and inject technocrats to help drive the economy.
”We seriously need such a friendly economic environment that will attract foreign direct investment for our economy to re-bounce”.he stated.
In a remark, the Vice Chancellor, Professor Maduebibisi Offor Iwe, commended Professor Uremadu for his well-researched and deep-rooted lecture, and for making recommendations that could help restart the economy.
He appealed to policy makers to consider the “salient recommendations”, and create favourable environment ” so that people in business can thrive”.
The VC also urged the federal government to allow domestic investment to thrive for economic growth.