Chairman of Northern Governors Forum and Governor of Niger State Babangida Aliyu has said the removal of subsidy on petroleum products will free the government from financial bondage.
He said states would get more money to execute projects.
The governor spoke yesterday at a one-day National Roundtable for Good Governance with the theme: “Deregulation in an Emerging Economy.’ He said the Federal Government should initiate a relief package for the poor, if the fuel subsidy is eventually removed.
Aliyu, who noted that the poor would be mostly affected by the oil subsidyn removal, posited that it would eliminate the government’s overbearing influences and control in running businesses.
He said: “With the removal of oil subsidy, the states will get more money, apart from the palliatives that will come from the removal of oil subsidy as states will get as much as N8 billion.
“This will, in turn, free government from the bondage of continuous financing of extensive projects which are best suited for private investment by encouraging efficiency and effectiveness in resource utilisation, reducing government borrowing while raising revenue and promoting healthy competition.”
Aliyu went on: “Considering the deplorable non-functional state of some government companies and industries, deregulating them will save government the burden of continually financing these projects that are best suitable for private investment.”
“Government has over 400 agencies that are not fully functional because we do not need more than 100 agencies as some are even duplicated in their functions. This roundtable is expected to provide the necessary platform that will help the Nigerian economy fully prepare for and embrace the new direction.
“With the current trend in global economy, Nigeria must learn to catch up with the rest of the world or risk being left behind. For instance, with well over 3,557 kilometres of rail track network across the country, the Nigerian rail is in a parlous condition and requires prompt injection of huge capital, far beyond what the public funding can offer.
“If you look at all the reforms carried out on Nigeria National Petroleum Corporation, they all failed, creating room for deregulation of the sector.”
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Aliyu: removal of subsidy’ll free govt from bondage