•Analysts paint conflicting picture of subsidy return The economic recovery efforts of the Federal Government, under the Accelerated Stabilisation & Advancement Plan will set stormy waters following the return of fuel subsidy and continued depreciation of the Naira.
“The truth is that there will always be subsidy for as long as the value of our currency keeps going down. You can only remove subsidy as at a given point. A week or a month after, if the value of the currency goes down and the government insists on maintaining uniform or near uniform pump selling price, subsidy kicks in immediately.”Clifford Egbomeade, a public affairs analyst & Communication expert, while expressing concern over the seeming sharp rise in subsidy spending from about N3.
“The Accelerated Stabilisation & Advancement Plan report acknowledges these challenges, emphasizing the need for a framework that transitions towards market-driven pricing and sets a definitive end date for fuel subsidies. Such a move is critical for stimulating growth in the oil sector and reducing the fiscal burden on the government. However, this transition must be carefully managed to avoid significant social unrest and economic disruption.