Nigerians are really tired of this back
and forth policies that in end they can’t see the benefit just more pain and
suffering….. What were the promises that were made, at the end of April this
year? My sentiment exactly. Ha! Complete removal of fuel subsidy?
Mr Sanusi, a former banker who specialized in risk management and who is allied with Finance Minister Ngozi Okonjo-Iweala in the push for reforms, is pushing for the complete removal of the system of subsidizing fuel.The government tried to scrap the subsidies but backtracked after widespread protests earlier this year and partially reinstated them.
The CBN governor said the government should spend no more than the N880 billion for subsidies in 2012 earmarked in the budget signed by Nigerian President, Goodluck Jonathan on Friday. “I would simply like to see that the government does not pay a penny more than that, no matter what happens,” he said. Mr Sanusi also said that a sharp fall in oil prices could spell big trouble for Nigeria. “There will be a very bad day and a lot of gnashing of teeth if the oil price crashes and we haven’t saved a thing,” he said.
According to the CBN governor, though Nigeria is one of the world’s fastest-growing economies – gross domestic producer expanded by more than 7 per cent last year – and foreign investors have poured money into its financial markets to take advantage of high interest rates, it remains dependent on oil production which accounts for about 80 per cent of government revenues. He is a leading advocate for an overhaul of Nigeria’s economy to make it less exposed to fluctuations in oil prices, a campaign which has drawn opposition from the country’s powerful state governors. They fear reforms such as creating a sovereign wealth fund could prevent them from dipping into Nigeria’s windfall oil revenues.
Mr Sanusi noted recent discussions between the United States and other industrialized nations about the possible release of strategic petroleum reserves, and signs that producer countries such as Saudi Arabia might increase output to help bring down oil prices. “Our major concern is a major decline in the price of oil or (domestic) output would lead to a massive depreciation of the currency, a collapse in reserves and a huge growth in deficits and some of the states outside of the oil-producing region might find actually themselves in a situation where are not able to pay salaries,” he said. “I am trained to think in terms of ‘what if’ and that’s the mindset I bring to my job.
What happens if oil prices go to $50 a barrel? It’s happened before.” Asked how low oil prices would need to fall before they pose a risk to Nigeria, Mr Sanusi said a decline to around $85 or $90 a barrel – from around $120 now – could lead to a shortfall in projected revenues and higher budget deficits, if Nigeria’s oil output does not increase.
Source: Channels TV
6 comments:
These govt are just playing with us, they've seen that we are weak,so they wake up one morning and impliment any law,what so ever
So why are the other sectors of the economy not being emphasised on....i wish the oil thing wiil dry up let see how far with this govt
They call themselves educated and specialised yet they have not done jack on agriculture,manufacturing sectors....who are these experts they are paying billions for consultation,when the soultion is not rocket science
Wetin be ds sef,sheeeeee! dey talk say by April d money they will recover. Shame on them bc April is fast approached and they've not met their sweet talk promises, they are coming up to increase fuel again abi?
It is terrible, d refineries are not functional for us to determine d price of fuel bc d promise of govt that April 2012,the resolution abt fuel subsidy would have been settled and new meaures would have been taken to improve d capacity of our refineries so that fuel importation will stop/or stopped
The fuel palatives that govt promised when Nigerians rose against d removal of fuel subsidy has not been put in place or brought into society and enjoy, which on my part its shameful.
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