Fuel subsidy: FG may spend N1.5trn this year – Saraki

Posted by admin Headlines, Oil Politics Sunday, October 16th, 2011

The Senator representing Kwara Central Senatorial District, Dr. Bukola Saraki at the weekend said the Federal Government might spend a whopping N1.5 trillion on fuel subsidy this year. He added that government expended N600 billion in 2010 alone in subsidising the same products.

Saraki, who is the chairman, Senate Committee on the Environment, spoke with newsmen at the weekend in Ilorin, the Kwara State capital, added that N1.5 trillion was “even more than the entire capital expenditure.” The immediate past governor of Kwara State therefore threw his weight behind the Federal Government’s proposed fuel subsidy withdrawal, urging government to win the confidence of Nigerians.

He added that “spending N1.5 trillion annually on fuel subsidy is not sustainable. Government must, however, be able to convince Nigerians that removing the subsidy is in their own interest. Government must also make all know that there are tangible benefits to be derived from the withdrawal of fuel subsidy. But this will take a lot of consultation.

“Last year, government spent about N600 billion on fuel subsidy; this year, it is likely we are going to spend N1.5 trillion. Then you ask yourself, are there more cars? Are we consuming more fuel than before? If we run a more efficient mechanism is it possible to keep it at N600 billion. At N600 billion is it sustainable? Spending N1.5 trillion on fuel subsidy is suffocating government.

“If we are producing through the refinery, the fuel will not cost as much and at that level you can subsidise. Other countries they are comparing Nigeria with are refining their own petroleum products. People are rejecting the proposal as they have lost confidence in the process. They don’t want to know how we got to that mess.”

On the defection of All Nigeria Peoples Party (ANPP) and Allied Congress Party of Nigeria (ACPN) members to the ruling Peoples Democratic Party (PDP), Saraki said “I’m not surprised because right from time I know that PDP is well entrenched in the state. Given our achievements in the past eight years and the determination of Governor AbdulFatah Ahmed to keep the ground running, people now see PDP as a party that will help the common man in the state,” he said.

-Sunwp_posts