President Buhari explained why he didn’t take the advice of top economists to get rid of Nigeria’s fuel subsidy.
In an interview with Bloomberg, Buhari said that western allies are finally figuring out that what looks good on paper and what has real-world effects are two different things.
He said, “These days, fuel subsidies are used in most western countries. Why should we take ours off right now? What’s good for the goose is also good for the gander.
“Our western allies are learning the hard way that what looks good on paper and what happens to people are two different things. Late last year, my government began making plans to get rid of the subsidy. As the year went on and more people were asked their opinions, it became clear that such a move would not work. Increasing the amount of refined products made in the country itself will also help. As more private companies and modular refineries (like the Dangote Refinery, BUA Group Refinery, and Waltersmith Refinery) come on board, capacity is expected to go up by a lot by the end of this year and the beginning of next year.
“The exchange rate is still vulnerable to shocks from outside that can hit Nigerians hard and quickly. As we increase our own production of fuel (thanks to PIA) and food (thanks to agricultural policies), the threat of inflation will go down, and we can move toward unification.