Buhari: Most Western countries implement fuel subsidies, why should we remove ours now?
President Muhammadu Buhari says his administration is decentralising the nation’s national grid through renewable mini-grids to address the challenges of electricity supply across the country.
The president, who revealed this in an interview he granted Bloomberg News, said the Federal Government had earmarked $550 million to provide 20,000 Standalone Solar Systems (SHS), as well as Solar Hybrid mini-grids in over 250 locations.
“We are also decentralising the national grid through renewable driven mini-grids.
“The $550 million Nigeria Electrification Project has deployed more than 20,000 Standalone Solar Systems (SHS), as well as Solar Hybrid mini-grids in over 250 locations,” he said.
On the persistent calls on Nigeria by the International Monetary Fund (IMF) and the World Bank to remove fuel subsidy, the president remarked that subsidy removal was becoming increasingly untenable.
“Most western countries are today implementing fuel subsidies. Why should we remove ours now? What is good for the goose is good for the gander!
“What our western allies are learning the hard way is what looks good on paper and the human consequences are two different things.
“My government set in motion plans to remove the subsidy late last year. After further consultation with stakeholders, and as events unfolded this year, such a move became increasingly untenable,” said Buhari.
He added that boosting internal production for refined products would also help.
“Capacity is due to step up markedly later this year and next, as private players and modular refineries (Dangote Refinery, BUA Group Refinery, Waltersmith Refinery) come on board.
“The exchange rate is still susceptible to external shocks that can suddenly and severely affect Nigerian citizens.
“As we step up domestic production – both in fuel (enabled by PIA) and food (agricultural policies) – the inflationary threat shall diminish, and we can move toward unification,” he said.
