Dr Muda Yusuf, an economist, has urged the Federal Government to accelerate engagement with relevant stakeholders for a pragmatic transition to the proposed petroleum subsidy removal.
Yusuf, also the Chief Executive Officer of Centre for the Promotion of Private Enterprise (CPPE), made the call on Tuesday in an interview with the News Agency of Nigeria (NAN) in Abuja.
It would be recalled that the Federal Government in order to comply with the provisions of the Petroleum Industry Act (PIA) had announced working through a process for the removal of petroleum subsidy from July.
The PIA stipulates that the prices of all petroleum products shall be deregulated.
Already, the prices of diesel and kerosene, among others have long been deregulated except PMS.
According to him, it is a tricky issue which could pose a serious challenge to government if not tactically managed; hence the conversation should not only be economic, but social and political.
He said there was a need to creatively manage the transition from the current pricing regime to a fully deregulated arrangement.
“The reality is that the sentiments among the citizenry are not favourable to the deregulation of petroleum product pricing or petroleum subsidy removal.
“Even some elites are curiously not persuaded on the justification for the subsidy removal.
“If the policy transition is not properly managed, the risk of a social and political backlash could be quite high.
“No doubt there is a sound economic and business case in favour of fuel subsidy removal. But the social and political contexts are equally critical.
“Certainly, the subsidy is not sustainable, which is why there is a need to accelerate engagement with the relevant stakeholders to come up with a policy transition strategy that is realistic,’’ he advised.
