The politics of Subsidy Removal


The minister of information and culture, Lai Mohammed, says it is the wrong time to remove the costly petrol subsidy.

Mohammed said this on a Monday in an interview with Reuters.

The federal government had postponed the planned petrol subsidy removal till further notice, citing “high inflation and economic hardship”.

Zainab Ahmed, minister of finance, budget and national planning, had said petrol subsidy was “hurting the nation” and limiting the federal government’s ability to service debt.

The International Monetary Fund and the World Bank had also raised concerns about Nigeria’s petrol subsidy.

To make sense of this, I spoke to an economist, Professor Ken Ife. I began by asking him what he makes of the statement by the minister of information that Nigeria can’t at the moment remove subsidies, despite spending trillions of naira?

The conversation on fuel subsidy in Nigeria will be incomplete without touching on the political perspective. To do justice to that, Our Correspondent Deji Bademosi joins us now, thank you very much for joining us.

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