Gbenga Daniel, a prominent political figure who served as the governor of Ogun state and now represents Ogun East district in the Senate, has highlighted the far-reaching consequences of President Bola Tinubu’s bold move to eliminate fuel subsidy.
Daniel’s observations reveal that the rise in monthly allocations to states in June 2023 was nothing short of remarkable, nearly doubling in comparison to previous disbursements.
This improved financial support is poised to facilitate accelerated progress in various sectors, such as education, healthcare, infrastructure, and job creation, ultimately benefiting Nigerian citizens at large.
Speaking about the performance of President Bola Tinubu’s government after 30 days in office, Senator Gbenga Daniel shared his view on the removal of fuel subsidy.
Recognizing the significance of this move, Daniel also acknowledged that it comes with its own implications that require careful consideration and strategic measures to mitigate any potential challenges.
‘I was informed that the allocation that went to the states this month is nearly double of what was a month ago,’ Senator Daniel noted while appearing on TVC on Thursday. ‘Although, the bold decision that was taken to withdraw (removed) subsidy has major implications.’
Immediately following his inauguration on May 29, President Bola Tinubu made an announcement, stating that the petroleum subsidy regime would no longer be in effect.
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He further disclosed that upon reviewing the 2023 budget, he found that it did not include provisions for the subsidy.
According to Mr. Tinubu, the funds originally allocated for subsidies will now be redirected toward public infrastructure, education, healthcare, and creating employment opportunities.
However, the budget for 2023 includes provisions for fuel subsidies only until June.
The longstanding practice of fuel subsidies in Nigeria has resulted in a strain on the country’s financial stability and has impeded the government’s capacity to allocate funds for crucial developmental initiatives.
While discussing the removal of the fuel subsidy, Mr. Daniel emphasised the government’s dedication to implementing comprehensive measures aimed at providing relief and cushioning the potential hardships that may arise from the subsidy removal.
However, he pointed out that Nigerians have already begun to feel the effects of the economic policy implemented by Mr. Tinubu’s government.
‘Of course there are downsides and I’m happy that efforts are being made to provide all forms of palliatives that can stem the side of some of the expected downsides.’
‘But I have no doubt that in a few weeks, months, we would have a new environment and things would start to happen.’
He disclosed that ‘indirectly, those dividends of democracy that he (Tinubu) talks about have started happening’ while stressing that ‘and if governance at the state level can also thrive very hard to ensure that some of these resources that are coming into the state are also allowed to be (sic) down those are the ways we can start feeling that the removal of this subsidy is having a direct impact.’
Following the removal of the fuel subsidy, the pump price of fuel has surged from ₦194 per litre to over ₦500, with variations across different states.