How I plan to remove subsidy regime – Tinubu

Subsidy must go: In addition to phasing out fuel subsidy, the former Lagos State Governor also promised to accelerate full implementation of the Petroleum Industry Act, pursue other favourable policies to attract investment in Deepwater assets in the space of six months.

These promises were contained in his manifesto released on Friday, October 21, 2022.

Full deregulation: Tinubu also disclosed that he will ensure stability in supply of petroleum products by fully deregulating the downstream sector and ensuring that local refinery capacity is strengthened to meet up with domestic consumption needs.

Tinubu’s word: “We shall phase out the fuel subsidy yet maintain the underlying social contract between government and the people. We do this by dedicating the money that would have been used on the subsidy to fund targeted infrastructural, agricultural and social welfare programs ranging from road construction to boreholes, public transportation subsidies, and education and healthcare funding programs. In this way, the funds are more directly and better utilized to address urgent social and economic needs.

“Our planned approach will not only mitigate the price effects of deregulation but will also result in the significant expansion of public infrastructure and improvement of public well-being.

“Subsidy removal and deregulation are, however, only part of the solution. To further increase our refining capacity, we shall focus on the rehabilitation of the nation’s refineries and shall consider, as a model, the joint venture partnership arrangements implemented by other leading oil-producing states and global petrochemical firms.”

Pulse reports that the APC presidential candidate’s proposal reflects President Muhammadu Buhari‘s resolve last year to remove the controversial fuel subsidy following advice by the International Monetary Fund (IMF), and the World Bank.

The Buhari government had proposed a N5,000 monthly stipend for transportation to about 40 million Nigerians to cushion the effect of subsidy removal.

However, the plan was later jettisoned as the Minister of State for Petroleum Resources, Timipre Sylva, on January 25, 2022, announced that government had proposed to extend the subsidy removal implementation period by another 18 months.