Chike-Obi urges Federal Government to remove subsidy in electricity, guarantee ten years tax holiday

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Everybody deserves to have electricity but government should allow operators to charge electricity based on those who needed it the most in the market price. Most people that use generator pay N160/Kwh and pays comfortably.

“If you tell these power companies that they can sell power at N160/kwh, they will make sure that more power will be generated (and distributed) to enable they to make more profits.

He cited GSM evolution at starting point to that of electricity if allowed, the price will be high at first for those who can afford it within three to four years in operations, the operators will surely review their price to takes more people, then electricity price will fall to average people.

 

Addressing members of the Finance Correspondents Association of Nigeria (FICAN) on theme, “Repositioning the Nigerian Economy for sustainable growth,” Mustafa Chike-Obi, Executive Vice Chairman, Alpha African Advisory, lamented that subsidy in electricity

 

Speaking in Lagos on Monday, at an agenda-setting forum as the second four-year term of President Muhammadu Buhari begins in earnest, Chike-Obi lamented that there are three forms of subsidies that hindering other sectors that need urgent attention, besides slowing down hampering GDP.

 

 

Chike-Obi, immediate past chief executive of the Asset Management Corporation of Nigeria (AMCON) lamented that rich Nigerians benefit more from fuel subsidy, adding that the average rich person in Ikoyi is getting approximately 100 times a year fuel subsidy than the person in Shomolu in Lagos.

 

He wondered why the Federal Government should continue subsidizing Premium Motor Spirit (petrol), spending all of N1.2tr per year, apart from some other hidden loses no one is allowed to see.

 

According to him, “who gets the fuel subsidy? …the rich people with six cars daily are those benefitting from fuel subsidy not poor, he affirmed.

 

Former AMCON Boss also expressed concern about Nigeria’s rising debt service ratio, which according to him could be about 70% of annual revenue, warning: “It is almost a guarantee that Nigeria is going to be talking about debt rescheduling soon and we need to start putting our house in order ahead of that.”

 

Chike-Obi stressed the need for coherent and forward-looking policies to address the myriad of problems confronting Nigeria.

 

For Nigeria’s economy to achieve the much desired double-digit growth, the Federal Government must eliminate subsidies in fuel, foreign exchange, and electricity, while paying greater attention to security and infrastructure, just as removing electricity subsidy will attract significant investments to the power sector and unlock other opportunities.

 

“We are badly in need of good leadership… we need a leader that would map out the strategy and roadmap for economic growth at double digit in this country.

 

“There is a need for coherent monetary and fiscal policies. For me, the position of a CBN Governor should be a cabinet position and the CBN Governor should always be meeting with the Minister of Finance formerly at least once in two weeks while they two named above include Minister of Budget and Planning should meet with vice president every month.

And they said group should proceed to meet with the president once in three months to chart one direction and that the president should present his score card to the National assembly,” he added.

 

According to the former AMCON CEO, revenue mobilization is Nigeria’s biggest problem, therefore, creating ministry for that office, will be a right direction.

 

In addition, he proposed the creation of a Ministry of Infrastructure

 


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