The Lagos Chamber of Commerce and Industry (LCCI) has commended the Federal Government on the removal of fuel subsidy.
While noting that the successive administrations had shied away from the bold “nation-building decision”, the Chamber, in a press statement signed by its President, Asiwaju Michael Olawale-Cole, posited that it is noteworthy that industry regulators and operators are already implementing the subsidy removal.
The statement said LCCI is confident the removal will greatly impact the government’s coffers, reduce the outrageous cost of governance, improve accountability in the sector, impact government capacity to finance infrastructural development and to grow the economy.
Asiwaju Olawale-Cole said LCCI anticipates that the decision, if followed through appropriately, will result in improved investments, especially along its value chain, promote healthy competition and even ensure product availability.
Other gains it listed include: growth in aggregate employment, weakening the undue pressure on the local tender, improving balance of payments and economic growth.
LCCI recalled that over the years, the Chamber, like many reputable international institutions and local organisations, has consistently expressed its fears and concerns about the enormous fiscal burden the subsidy regime had placed on the nation and its financial wellbeing, which are known to all and sundry.
Following this, the Chamber appealed to Nigerians to express understanding and support the government in the proper implementation of this much-desired policy, urging the government to express commitment to the welfare of the masses, especially the most vulnerable groups and industries.
“This can come in the form of palliative provisions and interventions for critical industries. The government should also hasten to rehabilitate existing refineries – get them into proper functional state. It can thereafter completely sell them in an open, competitive bidding process or partly sell them using the NLNG model” Asiwaju Oawale-Cole noted.
Meanwhile, LCCI boss has urged industry regulators to ensure a seamless transition, particularly, in terms of distribution channels and speedily address any violations, like tampering with meters that could thwart the efficient implementation of the policy.
The industry expert who noted that the subsidy removal was almost coming in as a footnote, pushing that the “vexing issue of oil theft” should also be frontally addressed.
Recall that President Bola Tinubu Tuesday announced that the controversial fuel subsidy “is gone”. Since the announcement, long queues have returned to petrol stations in many States, with the product being sold at skyrocketing prices.
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