Channel Gains From Fuel Subsidies To Power, Industrialisation, Nosiru Onibon Urges Tinubu

• President Tinubu ordered an end to the fuel subsidy regime on his first day in office.

• The gains from the subsidies have led to an increase in federal government allocation to states.

• Onibon disagrees with this model and has suggested a different one.

Eko Hot Blog reports that a former Deputy Vice Chancellor of the Lagos State University of Education (LASUED), Associate Professor Nosiru Onibon, has called on President Bola Tinubu to channel gains from the removal of fuel subsidies to real sectors of the economy, including power and industrialisation.

Onibon made the push on Thursday when reacting to the president’s move to ban official foreign travels by ministers.

Tinubu had put an end to the federal government paying fuel subsidies on May 29, 2023, as soon as he was sworn into office.

File photo: President Bola Tinubu signing a document

While the decision more than tripled the pump price of fuel, it led to an increase in the federal government’s monthly allocation to state governments.

Despite the increase in allocation, state governments have been accused by the presidency of not utilising their increased allocations properly as most Nigerians across the country grapple with economic hardship.

In a move to cut government spending and free up funds to support citizens, the president through his Chief of Staff, Femi Gbajabiamila, ordered a 90-day ban on all foreign trips by ministers and other government officials in a recent letter.

However, according to the letter addressed to the Secretary to the Government of the Federation, George Akume, exemption could be given to “trips deemed absolutely necessary”.

Reacting to the travel ban which comes into effect April 1, 2024, Onibon described it as a welcome development.

Associate Professor Nosiru Onibon

In a statement shared with Eko Hot Blog, he also urged Tinubu to channel gains from the fuel subsidy removal to the power and industrialisation sectors instead of sharing with the state governments.

The academic also advocated for further cut in ministerial portfolios, agencies and parastatals as well as reduced allowances of CEOs to save funds.

“It is a good thing that PBAT is listening to public cry against high cost of governance,” Onibon stated.

“The move to restrict international trip is a welcome development. Further prudent measure in form of cut in ministerial portfolios, agencies and parastatals as well as reduced allowances of CEOs will save a lot of money.

“I also believe PBAT [President Bola Ahmed Tinubu] should channel gains from subsidies to real sector of the economy especially Power and industrialization instead of sharing with the State Governments and LGAs.”

He added that the president does not need a loan from the International Monetary Fund (IMF) and other foreign borrowing organisations, suggesting that the judicious use of funds can help Nigeria get out of its current economic quagmire without outside help.

In January, President Tinubu issued a directive on cutting down the size of delegations for local and foreign trips.

He directed that individuals on his delegations should be pegged at 25 for local travels and 20 for international engagements.

The president also ordered that security agents based at his destinations should be regularly deployed for his protection whenever he travels to states instead of being accompanied by many security details from Abuja, the nation’s capital.

The move came after he was criticised for wasteful spending for taking a large delegation to the 28th Conference of Parties (COP28) in the United Arab Emirates (UAE) last year. The federal government funded 422 persons on the trip.

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