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.

+ posts

Featured Stories

Latest from Business

Naira Ends Week With Marginal Gain Against Dollar

Naira Remains Stable Against Dollar In Black Market

Traders in the black market on Friday, December 19, saw no changes in the foreign exchange (FX) rate for the United States dollar (USD), as the naira neither depreciated nor appreciated. In a parallel market data provided by Naira Rates, the exchange
Five Best-Performing Banks In Q3 2025 -- By Profit Growth

Five Best-Performing Banks In Q3 2025 — By Profit Growth

Sterling Financial Holdings Company, First City Monument Bank (FCMB), Stanbic IBTC, Wema Bank and Ecobank are the top five best-performing banks in Nigeria by pretax profit growth in the third quarter (Q3) of 2025. The five banks made it to the list
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

Court Order: Swift Networks Debunks Allegations On Debt

Ex-Parte Injunction To Union Bank Baseless, Says Swift Networks

Nigerian-based telecommunications company, Swift Networks, has described as “false and

Sarkozy’s Fall: Former French President Heads to Prison Over Libyan Funding Scandal

Sarkozy's legal team is expected to immediately request his release