By Moses Patience Chat
The Lagos Chamber of Commerce and Industry ( LCCI) has said that the Federal Government’s plan to remove petrol subsidy will trigger investment and also reduce Nigeria’s rising debts.
LCCl’s President, Dr. Michael Olawale-Cole, said this during the Chamber’s second quarter State of the Economy Conference on Tuesday in Lagos.
Olawale-Cole also urged the government to begin to roll out several cushioning measures ahead of the subsidy removal in the second half of the year to mitigate any likely disruptions to the economy.
His words: “Removal of fuel subsidies is, amongst others, expected to spur investments in domestic refining and petrochemicals and create a significant value chain for the various stakeholders.
“Though the planned removal of fuel subsidies may cause further northward movement of inflation in the short term, it is arguably one of the best economic decisions to reduce our unsustainable debts and widespread corruption in that sector.
“The government must however, take cognisance of its socio-economic implications, especially with unemployment at the unwholesome rate of about 40 per cent.”
The LCCI’s President frowned at borrowing to fund subsidies or support uneconomic ventures, saying that the government’s fixation on debt accumulation was unhealthy.
He further advised the government to prioritise exploring other avenues like opening equity opportunities, offloading/selling of its real estate holdings and tackling oil theft to create room for fiscal manipulation.