Buhari should stop fuel subsidy, says Sanusi

Muhammadu Sanusi II, emir of Kano, believes fuel subsidy is a major drain on the country’s resources and wants President Muhammadu Buhari to put an end to it.

According to Sanusi, what currently goes as subsidy is “hedging”, which gives rooms for manipulation. He said economic experts would understand his explanation better.

He was speaking on Thursday at a programme organised by the Institute of Chartered Accountants of Nigeria (ICAN) in Lagos.

“We don’t have subsidy, we have hedge. Anybody who knows economics knows what subsidy and hedging are,” he said.

“One of the major challenges of the country over the years has been over-dependence on oil and lack of structural reforms.

“We can begin to restructure our economy by fixing the revenue chain and blocking the leakages and one way of doing that is by stopping subsidy because it gives room for corruption.”

But Buhari does not seem to agree with the former banker, as he believes that removal of subsidy would worsen the sufferings of the masses.

In an interactive session with officials of the oil sector back in July Buhari had said: “I have received many literatures on the need to remove subsidies, but much of it has no depth. When you touch the price of petroleum products, that has the effect of triggering price rises on transportation, food and rents.  That is for those who earn salaries, but there are many who are jobless and will be affected by it. We have to go back to the good old days of transparency and accountability.”