Revealed: Obasanjo fingered behind subsidy regime in Nigeria

• Former military heads of state, Olusegun Obasanjo and Yakubu Gowon, have been faulted for institutionalizing fuel subsidy regime in Nigeria
• Niyi Akinsiju, the chairman of IMPI, said the two former heads of state introduced subsidies when the country was making lots of profits from the sales of oil
• Akinsiju then faulted the labour unions for kicking against the implementation of fuel subsidies, adding that it was no longer sustainable

Independent Media and Policy Initiative (IMPI) has revealed the genesis of petroleum subsidy in Nigeria started during the time of the two military heads of state, Gen Yakubu Gowon, and Olusegun Obasanjo.

The media group alleged that the two former Nigerian leaders institutionalised the controversial petrol subsidy during the country's economic buoyancy.

Obasanjo, Gowon started paying of fuel subsidy in Nigeria Photo Credit: @officialABAT
Source: Twitter

Why Obasanjo, Gowon introduced fuel subsidy

The chairman of IMPI, Niyi Akinsiju, revealed that the two former military heads of state introduced fuel subsidies as a temporary measure to mitigate the impact of rising international oil prices.

Speaking to journalists in Abuja on Tuesday, September 10, Akinsiju explained that the subsidy was intended as a short-term fiscal response to OPEC's actions, but it has become a permanent fixture in Nigeria's economic landscape.

Labour faulted for kicking against subsidy removal

He expressed disappointment with labour unions for criticizing the current government's removal of subsidy, despite the widespread opinion that it should have been exited before 2023.

Akinsiju highlighted that under Gowon and Obasanjo, petrol prices increased by 40% and 70%, respectively, in response to economic realities. He argued that subsidies were initially introduced to redistribute wealth during times of high revenue but have become a distortion in the economy during downturns.

IMPI believes that the government's efforts to stop subsidy implementation have been met with unnecessary uproar and outrage, and it's time to reevaluate the policy.

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Source: Legit.ng