Emmanuel OchayiThe Director-General of the Nigeria Employers’ Consultative Association (NECA), has urged the Federal Government to reinvest gains from fuel subsidy removal into critical infrastructure projects.
Oyerinde emphasized that while expectations for a reversal of fuel subsidy removal persist, redirecting revenue from this move into infrastructure development, including road construction, electricity enhancement, and revitalization of national refineries, is essential for economic regeneration.
He stated: “Fuel subsidy removal has increased the cost of doing business, affecting sectors such as transportation and logistics, leading to lowered household consumption and impacting the real sector’s production.”
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Addressing the need for small business support, Oyerinde stressed the importance of providing basic infrastructure like power and secure road networks. He also highlighted the necessity of creating a business-friendly environment by streamlining regulations and reducing the burden of multiple taxes.
President Bola Tinubu’s announcement of the end of the fuel subsidy regime in May marked a significant policy shift. Data from the Federal Account Allocation Committee reveals that the government successfully saved N1.45 trillion between June and November last year through petrol subsidy removal.
Oyerinde asserted, “Fixing the regulatory environment is essential to make businesses competitive. Regulatory agencies should be assessed based on how they facilitate and incentivize businesses.”
The NECA DG emphasized that sound infrastructure and a supportive regulatory environment would address challenges faced by small businesses, making them more attractive and competitive. Managing the macroeconomy to sustain household income and combat inflation is crucial to maintaining purchasing power and driving economic growth, he concluded.
