The Lagos Chamber of Commerce and Industry (LCCI) says petrol subsidy will reduce Nigeria’s debts and tackle corruption in the oil sector.
Michael Olawale-Cole, LCCI president, said this during the chamber’s first quarter (Q1) state of the economy conference held in Lagos.
Olawale-Cole said the removal of fuel subsidies would stimulate investments in domestic refining and petrochemicals and create high-value jobs domestically, instead of subsidising jobs in other countries.
“Removal of fuel subsidies is, amongst others, expected to spur investments in domestic refining and petrochemicals and create a significant value chain for the various stakeholders,” he said.
“It will also release over N3 trillion per annum for social spending as well as create domestic high valued jobs rather than subsidising jobs in other countries at the expense of ours.”
The president also warned that the removal of subsidies could cause further inflation in the short term.
He then urged the government to roll out cushioning or palliative policies and measures to mitigate the economic implications of the removal of subsidies in the second half of the year.
“The government must however take cognisance of its socio-economic implications especially with unemployment at the unwholesome rate of about 40 percent,” he added.
“To achieve the laudable objectives of the 2023 budget, we urge the government to sustain current efforts towards the realisation of crude oil production and export targets by strengthening the investment-friendliness of the oil and gas industry.
“Public-private partnerships (PPPs) are the best models to fast-track the pace of our infrastructural development.”
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