Fuel Subsidy in Nigeria – Much has been discussed about the pros and cons of the removal of fuel subsidy in Nigeria. However not as much media attention has been paid to how the gains from the subsidy removal will be spent across the economy.
Coordinating Minister for the Nigerian economy, Dr. Ngozi Okonjo Iweala itemized the Government’s intended use of the fuel subsidy gains at the recent townhall on fuel subsidy titled: Removal of Fuel Subsidy : In whose Interest?
According to the Minister, the subsidy proceeds will be used to support two predominant areas:
1. Social Safety Nets
“The revenue from these subsidies will be used to produce social safety net programmes for the poor in the society. These are programmes designed to touch the poorer people in our society. So we are looking at youth employment programmes. There are many unemployed youths. The Federal Government has introduced a youth programme: You-Win, where we are looking at empowering the youths. Some of the money would go towards that. The other is urban mass transit, which is to improve the services of people within the society as well as to enable them move around.” – NOI
2. Vocational Training Skills
“In this country, typically, when we are building a house, we find out that the carpenters, plumbers; most of them that we engage are foreigners from Togo, Niger and other neighbouring countries. Why? When we have our youth who are unemployed? Why can’t we train them to be able to render such services? We are going to train them. These are projects we are going to look at. So you (Nigerians) should be able to hold government accountable.” – NOI
Do you support the Nigerian Government’s intended use of the fuel subsidy proceeds?