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Former Nigerian Economic Summit Group Chairman Kyari Bukar suggests President Bola Tinubu should have adopted a step-by-step strategy to dismantle petrol subsidies, thereby minimizing the financial hardship imposed on the Nigerian populace.
To mitigate the impact of fuel price deregulation, Bukar recommended a gradual reduction of 5% every six months, allowing the public to adjust to the changes without significant hardship.
Kyari Bukar, Managing Partner at Trans-Saharan Investment Corporation, shared his insights on the fuel subsidy removal during an appearance on Channels Television’s socio-political program, Inside Sources, hosted by Laolu Akande, which aired on Friday.
“When you are making policies for the economy, the participant in that economy, their input is important,” he said.
“When you come with a policy that is detrimental to the economy, they will leave or find ways to avoid or overcome the policy.”
Read also: No Dishonesty In Fuel Subsidy Matter, Presidency Says
The former NESG chairman said, “There’s a lot of anxiety in the country. Economically speaking, there is a lot of hunger, and people have become violent and they are saying things that they ought not be saying, and all of those are tied to a few policy stances: the fuel subsidy removal and the harmonisation of the exchange rates.
“Both of them are good policies if it had been done in a more informed manner. My take on fuel subsidy removal is to truly remove fuel subsidy gradually over a period of time.
“The unintended consequences of those policy pronouncements should have been studied and those recommendations shared with Mr President before he goes on the podium to say it. Something was missing in all honesty.
“The vision might be right but the approach in implementation or execution was horrible.”
On May 29, 2023, President Tinubu’s inaugural address introduced sweeping economic reforms, including the abolition of petrol subsidies, which led to a 400% price surge from N200 to N1,000 per liter. Simultaneously, the administration harmonized exchange rates, causing forex values to escalate from N700 to N1,600 per dollar in both official and parallel markets.
