Bismarck Rewane, a prominent Nigerian economist and member of the Nigerian Economic Advisory Council, has shed light on the status of fuel subsidy removal in Nigeria
Partial Reduction, Not Total Removal
According to Rewane, in an interview on Channels Television’s 2023 Democracy Day program, the current government has implemented a reduction in the fuel subsidy but has not completely removed it.
He argues that the price of fuel would be significantly higher if the subsidy were entirely eliminated.
The Nigerian National Petroleum Corporation (NNPC) Limited, as mentioned by Rewane, would sell fuel within a price range of N488 to N568.
Emphasizing a Comprehensive Approach
Rewane stresses the importance of addressing multiple economic issues simultaneously instead of taking a piecemeal approach.
He highlights the interconnectedness of factors such as interest rates, exchange rates, petroleum subsidy, and debt, arguing that a comprehensive package is necessary to tackle these challenges effectively.
Potential Inflationary Effects
With regards to the “fuel subsidy removal,” Rewane projects potential inflation rates of 25 percent in June and 28 percent in July.
This suggests that the removal of the subsidy could have significant economic consequences that need to be carefully managed.
Insights from a Prominent Economist
Rewane’s comments provide valuable insights into the ongoing discussions and actions surrounding fuel subsidies in Nigeria.
His analysis sheds light on the status of the subsidy and highlights the need for a comprehensive approach to address economic challenges.
Rewane’s perspectives contribute to a better understanding of the complexities involved in fuel subsidy removal and its potential impact on the Nigerian economy.
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