Event Round-up: Subsidy Removal: Prospects and Challenges | Agora Thursday New Dispensation 1/6
Speaker: Atiku Samuel Date: 1st June, 2023
Since the military era, removing the Premium Motor Spirit (PMS) subsidy in Nigeria has been controversial topic. Successive Nigerian governments have emphasized how the subsidy has hindered governments at all levels from mobilizing domestic resources. By implication, subsidy reduces the money coming into the government’s treasury, which has hindered development. While it is legitimate to remove subsidies, it is important to note that Nigeria does not have a revenue problem; rather, it has an expenditure problem. The federal government’s expenditure has grown from 5 trillion Naira in 2015 to about 13 trillion Naira in 2023. For example, the non-regular allowance in the personnel component of the budget gulps about 1 trillion Naira in 2023. This non-regular allowance covers the estacode of government officials’ travels. There is a need to cut the cost of governance.
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