The Federal Government has defended its removal of subsidy on petroleum despite the cost of living and inflation soaring in the aftermath of the move.
Recall that President Bola Tinubu, in May, terminated the longstanding practice of subsidizing gasoline by swapping crude, a move that significantly impacted Nigeria’s revenue, foreign exchange, and debt.
Minister of Information and National Orientation, Mohammed Malagi, defended the subsidy removal on Thursday, arguing that it is in the best interest of the country.
During an appearance on Channels Television’s Sunrise Daily, Malagi addressed the economic challenges, stating, “The foundation of our economy had taken a beating a long time ago.
The substructure of our national economy has been one that cannot hold a meaningful substructure on it.”
Malagi stressed that the President’s decision to end the subsidy was crucial in resetting the economy, acknowledging the anticipated difficulties and emphasizing the necessity of freeing up resources for meaningful development.
He highlighted that removing the subsidy was a proactive measure, preventing a more severe impact on the nation’s progress.
Responding to concerns about the subsidy’s impact on the masses, Malagi revealed ongoing investigations into individuals benefiting from the subsidy, commonly referred to as “subsidy thieves.”
He assured that security agencies are actively working to address these issues, stating, “Security agencies are doing their jobs in that direction.”
The Federal Government contends that the subsidy removal is a strategic move to redirect resources and foster long-term economic stability, despite the immediate challenges faced by Nigerians.