Tinubu would’ve been breaking law if he retained fuel subsidy - Tunji-Ojo

Tinubu would’ve been breaking law if he retained fuel subsidy - Tunji-Ojo

Olubunmi Tunji-Ojo, minister of interior, says President
Bola Tinubu could not have retained petrol subsidy because there was no
budgetary provision for it when his administration came on board.

 

Speaking on Monday during a panel session at the annual
conference of the Nigerian Bar Association (NBA), where he shared the stage
with Oby Ezekwesili, former minister of education, Tunji-Ojo said paying
subsidy without appropriation would have been unlawful.

 

“As of the time this administration came on board, there was
no provision for subsidy in the national budget,” he said.

 

“Paying for subsidy would have been illegal because it was
not budgeted for. We have accumulated wrong choices made over the years that
are being corrected.

 

 

“So, we need to take out emotion and look at the facts of
where we were coming from and where we are now.”

 

Tinubu had on May 29, 2023, in his inaugural speech,
declared that “fuel subsidy is gone” — a pronouncement that immediately sent
prices of goods and services up.

 

However, speaking during the panel session at the NBA
conference, Ezekwesili pushed back, insisting the president’s declaration was
not driven by careful planning.

 

 

“When we train in economic policy, you really have to prepare
for reforms. I think that there was a braggadocio that was behind that whole
‘subsidy is gone’. That reform was not prepared for,” Ezekwesili said.

 

“So what we ended up in that situation was a good reform
done in the wrong way. And because that good reform was done in the wrong way,
it signalled to every other economic type of decisions that citizens had to
make, and it threw the economy into the inflationary situation that we have
found.”

 

But Tunji-Ojo noted that the move was inevitable, stressing
that Nigeria was spending about $25 billion annually on subsidies — an amount
he described as unsustainable.

 

“We were busy spending money that we did not have… When a
man has a tumour, it is not Panadol that is prescribed. Surgery may be the
solution,” he said, adding: “The economy is not stupid, but our choices over
the years have been stupid.”

 

 

The minister said savings from subsidy removal are now being
redirected to infrastructure to boost production.

Source: Tinubu would’ve been breaking law if he retained fuel subsidy - Tunji-Ojo

 - NigerianEye
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