Alhaji Muhammad Sanusi II, the former Emir of Kano, has advised the federal government that paying gasoline subsidies from the federation account is illegal.
Sanusi, who was a virtual panelist on the Sustainable Development Goals (SDGs) at the recently concluded Nigerian Economic Summit in Abuja, indicated that Nigerian daily oil consumption statistics is suspect, and that fuel subsidy payments are rife with corruption.
“This money comes from the federation’s account, and the federal government does not have the constitutional authority to pay subsidies on the federation’s behalf.”
“Because this is money that should go to the federal, state, and local governments, it’s a fundamental constitutional issue.” Despite this, money that belongs to the federation is spent by the federal government. As a result, there are several complex legal and economic difficulties. We must put an end to these problems.”
Former Governor of the Central Bank of Nigeria, Godwin Emefiele, has urged for the elimination of fuel and electricity subsidies, arguing that the money saved could be spent in key sectors like as education and health, which have a long-term return.
He pointed out that even the poorest countries pay cost-effective charges and have uninterrupted power.
“I’ve mentioned this before, even when I was the Governor of the Central Bank under the previous administration. What I say is not representative of any government. Take, for example, the petroleum subsidies.
“In 2015 or 2016, Minister Ibe Kachukwu said that Nigerians were importing 30 million gallons of PMS per day once corruption was eradicated. After rising oil prices, the NNPC said that we are importing 59 million litres per day in 2019. And I’ve been wondering what happened between 2015 and 2019, causing our oil use to nearly double?
“This is what happened under the previous administration as well. Because of the arbitrage, NNPC said they are importing more as oil prices rise. As a result, there is an incentive to exaggerate the figure while oil prices are high.”