Former Central Bank of Nigeria, CBN, governor and Emir of Kano, Muhammad Sanusi II, has said that the removal of subsidy by the Federal government, is in line with efforts to stabilize Nigeria’s economy.
Speaking on Arise TV monitored by Ashenewsonline on Friday, the former emir affirmed that the ongoing restructuring by government, which includes the removal of fuel subsidy, was the right thing to do at the moment.
“Some of the recent measures announced, the measures borrowed from the IMF, the elimination of fuel subsidy, painful as those are, are the necessary adjustments we need to make in order to improve the revenue profile of the government.
“Just improving the transparency in the oil sector for example, it has its relative impact on government revenues,” Sanusi said.
He however said that for government to achieve the restructuring, spending must be checked.
“The government should look at the quality of spending and ensure it is directed to the very bottom of the pyramid (masses),” he said.
He added that some of the spending that should be properly directed include to the areas of education, water, rural development, which are better than spending on beautiful bridges and skyscrapers.
He observed that Nigeria was in slow growth pre-COVI-19 and that about 60 percent of earnings was being used to service debts.
According to Sanusi, while fuel subsidy gulped N1 trillion within the last five to six years, there was also lack of transparency at the Nigeria National Petroleum Corporation, NNPC.
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