Subsidy removal: Economists commend Tinubu’s move to provide palliatives

Some economists have commended President Bola Tinubu for seeking amendment to the 2022 Supplementary Appropriation Act to allow the Federal Government to source N500 billion for palliatives to cushion the effects of subsidy removal.

The experts said in separate interviews that the decision was good even though it did not come on time.

Supreme News reports that the Senate in plenary on Thursday passed the bill seeking to amend the N819.5 billion 2022 Supplementary Appropriation Act to authorize the issuance of N500 billion for the provision of palliatives to Nigerians to cushion the effect of fuel subsidy removal.

The bill was sponsored by the Executive and presented by Senate Majority Leader, Bamidela Opeyemi (APC-Ekiti).

The Director, Centre for Economic Policy Analysis and Research, University of Lagos, said that the decision was good but came late.

“The decision is good but coming up slightly late. It should have come up almost immediately after the fuel subsidy removal announcement was made.

“The lag in policy formulation and implementation could make the policy slightly ineffective as many macroeconomic indicators could have adjusted to the initial policy.

“In any case, some value may be added to the policy outcome with this move,” he said.

He advised the Federal Government to minimise delays in this process so that ordinary Nigerians would feel whatever value this would bring.

Sheriffdeen Tella, Professor of Economics at the Olabisi Onabanjo University, Ago-Ago-Iwoye, Ogun, also said that the decision was appropriate.

“There must be need for supplementary budget for such palliative because there was no provision for it by the previous government who were more concerned with borrowing $800 million.

“So it’s in order if they’re not going to borrow externally. Whatever was not appropriated for in normal budget will have to be provided as supplementary budget,” he said.

Prof. Hassan Oaikhenan of the Department of Economics, University of Benin, said that the N500 billion, if approved, would not make any impact on-the well being of the people that it should, ordinarily benefit.

“I am of the opinion that it is, as usual, moves that are being by the government to create the impression that the government cares about the welfare of the so called common man.

“Like many other initiatives before it, such as the so-called school feeding programme or the so-called palliatives that were purportedly doled out during the COVID crisis, the so-called conditional cash transfer programme, etc., the N500 billion, if approved, will, in all likelihood make little or no impact on the well being of the people that it should, ordinarily benefit,” he said.