Fuel Subsidies: What I Would Do Differently as President – Atiku

Former Vice President Atiku Abubakar has listed what he would do differently if he were President of Nigeria.

Atiku said his disclosure became necessary because Nigerians often bombarded him with questions on what he would do differently if he were at the helm of the country’s affairs.

In a post on his page on Sunday, the former Peoples Democratic Party (PDP) presidential candidate in the last general election said such investigations are a distraction from the critical questions of what President Bola Tinubu should do to save Nigerians from excruciating pain, arising from his economic policy of trial and error.

In a lengthy statement titled “What We Would Do Differently,” Atiku said he will fight corruption and reposition the Nigerian National Petroleum Company Limited, NNPCL, which he said is a huge beneficiary of the status quo.

He said he would pay special attention to Nigeria’s poor refining infrastructure and take a gradual approach in implementing subsidy reforms.

Atiku also said that he will implement a robust social safety net program to support the poor in addressing cost of living issues arising largely from the reform. execution.

The statement read: “Yes, I have always advocated the abolition of PMS subsidies because their administration was, to put it mildly, opaque and had so much scope for arbitrariness and corruption. Staggering rents from oil subsidies went to cabals in government and the private sector.

“I would prioritize the following: “First, the fight against corruption. The fight against corruption should have started with the repositioning of NNPCL, which benefits enormously from the status quo. Its commitment to reform and ability to implement and enforce reforms are suspect. The subsidy regime has provided opportunities for rent seeking, reforms will be at risk for private individuals, NNPCL and its trustees.

“Secondly, there is a need to pay special attention to Nigeria’s poor refining infrastructure. We are by far the most inefficient OPEC member, both in terms of the percentage of refining capacity operating and the percentage of oil refined. We would begin the privatization of all state-owned refineries and ensure that Nigeria begins to refine at least 50% of its current crude oil production. Nigeria should aim to export 50% of this capacity to ECOWAS member countries.

“Third, take a gradual approach in implementing subsidy reform. Subsidies would not be removed suddenly and completely. It is instructive that when I was Vice President, we adopted a phased approach and completed phases 1 and 2 of reform before the end of our term. Unfortunately, the new administration in 2007 abandoned reforms. Most countries that review or rationalize subsidy payments take a gradual approach, increasing prices in stages or moving to a universal targeting approach (Malaysia, 2022 and Indonesia, 2022–2023). In many EU countries, a full exit often takes 5 years. A gradual approach allows for adjustment and adaptation and minimizes disruption and vulnerability.

“Fourth, implement a robust social protection program that will help the poor cope with the cost of living problems that arise largely as a result of the implementation of reforms. We would invest the savings from eliminating subsidies into strengthening the productive base of the economy by maintaining and developing infrastructure; improve educational and health outcomes; improve rural infrastructure and support the expansion of agricultural livelihoods; and develop the skills and entrepreneurial potential of our youth to increase their access to better economic opportunities.”