Senator-elect: Removal of petrol subsidy will facilitate investment in infrastructure, human capital

Ede Dafinone, senator-elect for Delta central senatorial district, says the removal of petrol subsidy will facilitate investments in infrastructure and human capital by the federal government.

Dafinone will replace Ovie Omo-Agege, deputy senate president, in the 10th upper legislative chamber.

In a statement on Thursday, the senator-elect said Nigerians should look at the brighter side of the policy as the federal government would be able to invest in other sectors of the economy.

“President Bola Ahmed Tinubu only emphasized the policy change announced by the past administration. His statement removes the uncertainty on a major component of government expenditure and would no doubt reassure our external creditors,” he said.

“I have also heard some people arguing that the president would have waited for the Dangote refinery to be fully operational before the removal of the fuel subsidy.

“Whilst I congratulate Alhaji Aliko Dangote for the success of the refinery project, the fact remains that the impact of the Dangote refinery selling its products in the Nigerian market would be marginal in terms of the cost of fuel at the pumps in Nigeria.

“It’s most likely that the Dangote refinery will buy crude in US dollars at global oil prices and will also sell to the Nigeria market in dollars (or the naira equivalent).

“However, it will be marginally cheaper than what is obtained internationally because shipping and other landing costs would not be a factor in the price build-up.

“The Dangote refinery is billed as an export refinery, and needs to sell its products at competitive prices to enable them to pay back facilities from international and local lenders.

“The removal of the fuel subsidy whilst temporarily painful, will facilitate investment in public infrastructure, human capital development and public sector reforms.”

The former chairman of the Manufacturer’s Association of Nigeria Export Promotion group added that “these investments are necessary for economic growth and prosperity”.