Nigerian Think-Tank, NESG, Calls For Subsidy Removal, Change In FX Multiple Rates

August 8, 2022

The Federal Government has been urged to remove subsidy in fuel price, as the Nigerian Economic Summit Group (NESG) highlighted some challenges of the Nigerian economy in a new report.

NESG, which is a private sector-led think-tank and policy advocacy group based in Nigeria, said the government should remove the subsidy, eight months after President Muhammadu Buhari-led administration suspended the removal for 18 months.

Join our WhatsApp Channel

In a communique revealing the conclusion of the Group’s Board of Directors meeting on Sunday, NESG said, “The proposed Medium Term Expenditure Framework of the federal government clearly indicates that the rising fuel subsidy costs continue to exceed unsustainable levels.

“According to reports from the Federal Ministry of Finance, Budget and National Planning, it is clear that the current fuel subsidy regime’s debilitating impact on our fiscal fragility cannot be overstated.

“We urge the federal government to explore a systematic subsidy removal programme that cushions the impact on our most vulnerable population through a well-coordinated and effectively transmitted social protection regime.” the group said.

NESG further suggested that the Central Banj of Nigeria (CBN) eliminate the multiple exchange rates in Nigeria, as its affecting foreign direct Investment into the country.

“International investors, being savvy and rational, will not invest where there is a real risk to their ability to access and repatriate investment proceeds or when the functional currency is in sporadic depreciation.

“Multiple foreign exchange (FX) markets with significant price differentials create room for speculation, round-tripping, cronyism and outright graft – with an attendant adverse effect on the economy.” the report by the think-tank discloses.

Featured Stories

Latest from Business

NGX

NGX Rebounds With N683bn Gain As Market Cap Settles At N122.23trn

The Nigerian Exchange (NGX) recovered from the slump recorded on Tuesday, February 17, with a N683.62 billion gain as the market capitalisation closed at N122.23 trillion on Wednesday, February 18. During trading the previous day, the NGX’s market capitalisation closed at N121.55

Kano Shuts Entertainment Centres for Ramadan

The Kano State Government has ordered the closure of all entertainment centres across the state ahead of the Muslim holy month of Ramadan. The directive, announced on Tuesday by the Kano State Censorship Board, affects venues popularly known as gala houses as well as
Nigeria Now Leading Cement Exporter In Africa – Dangote

Why Tinubu’s Policies Can Crash Dollar Rate – Dangote

The Chairman of the Dangote Group, Aliko Dangote, has said that current government policies could significantly strengthen the naira against the US dollar, potentially bringing the exchange rate down to as low as ₦1,100 to $1. Dangote made the remarks on Tuesday
Buhari Mourns Isaac Sagay, Former Nigeria’s Ambassador To The Holy See
Previous Story

President Buhari Approves Seplat Acquisition Of ExxonMobil’s Nigerian Subsidiary

Next Story

Werner Departs Chelsea, Arrives Leipzig For Medical Ahead €20m Move

Don't Miss

Wike, Fubara And The 48 Laws Of Power

Niger Delta May Implode Over Fresh Plot To Impeach Gov Fubara – NDC Warns

Just when Nigerians seem to have moved on from the
Bluemind Foundation: Heal By Hair featured in VOGUE

Bluemind Foundation: Heal By Hair featured in VOGUE

International recognition for an African initiative serving the mental health