The Emir of Kano, Alhaji Muhammadu Sanusi 11 said yesterday that President Muhammadu Buhari should remove the subsidy on fuel if the economy must be saved.
“This fuel subsidy has to go,” the former Central Bank governor declared at the All Africa Business Leaders Award West Africa held in Lagos.
Sanusi, who spoke extensively on the state of the economy, said the country can no longer afford the many leakages that have battered the economy over the years.
Quoting CBN figures,he said: “in the first two quarters of this year, this country spent over 500 billion naira on debt servicing. At end of this year, it will be over 1trillion which is more than the amount of money budgeted for health, education and defence combined.
“There is no room in the government’s balance sheet for borrowing and spending. We have no option but to block leakages and to stop non-priority expenditures.
“It is for this reason that we cannot afford to spend all our time talking about the past. It is time to look at what we are doing now and ask ourselves if the fiscal stance and monetary stance are the appropriate stances for the situation we are in.
“Does it make sense at this time for the government to continue paying petroleum subsidy? It does not, and we must say it.
“When you need fiscal consolidation, when you cannot borrow, when you are not earning because oil prices are down, you have to shut down, especially those expense lines that have been known historically to be the sights of those seeking rent.This fuel subsidy has to go.”
He also called for the expansion of the tax base and an increase in VAT
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