Managing director of Oando Plc, Wale Tinubu stated that
politicians want the subsidy on crude oil products to continue at all cost.
Speaking on Tuesday at the ongoing Oil and Gas Conference in Abuja, Tinubu called for deregulation of the sector adding that the federal government needs to cease subsidy.
According to Tinubu, $5 billion that could have been used to finance much-needed infrastructure was spent on fuel subsidy in 2018.
He said that other critical sectors of the economy, like education and health among others, were in need of funding.
He added that the $5 billion expended on subsidy should have been directed to other critical sectors or towards infrastructure development.
He said, “The government has chosen to effectively subsidise the price as a social palliative. Not that I support it, but we spent $5 billion last year on subsidy, which was even more than what we spent on education and housing combined.
“At a population growth rate of 3%, the question is what is the best – to invest in infrastructure or consumption? There is a big debate that has to be made around this and as stakeholders, we absolutely need to champion that debate with the federal government.”
