‘Federal Govt Can Generate N10trn From Fuel, Forex Subsidies Removal’

The Centre for the Promotion of Private Enterprise (CPPE) has said the federal government can generate a minimum of N10 trillion annually from the removal of fuel subsidy as well as elimination of the Central Bank of Nigeria (CBN)-subsidised foreign exchange window.

CPPE, in its Economic Agenda for Incoming Administration signed by its chief executive, Dr Muda Yusuf, said there was a need for the incoming government to prioritise macroeconomic stability with emphasis on moderating inflationary pressures, stabilising the exchange rate and boosting economic growth.

According to the CPPE, elimination of fuel subsidy will save an estimated N7 trillion annually, just as the “eimination of foreign exchange subsidy will unlock a minimum of N3 trillion revenue annually from the sale of CBN forex to the official foreign exchange window.”

CPPE also called for a foreign exchange policy reform to unlock inflows of capital into the economy, reduce arbitrage in the forex market and improve transparency in the forex allocation.

It further urged the incoming administration to: “Ensure a market reflective exchange rate to eliminate the distortions in the forex ecosystem; ensure level playing field in forex transactions; remove impediments to markets mechanism in allocation of forex. This will boost inflows from Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), Export Proceeds and Diaspora remittances.”

The CPPE also called for a reform of the tax regime to ensure efficiency in tax administration, reduce tax evasion and tax avoidance and eliminate multiple taxation.

It also called for the unlocking of more income from revenue generating agencies through enhanced efficiency of their operations as well as initiating budget reforms to ensure fiscal discipline, curb budget padding, curb duplication of projects and review the service wide votes to ensure transparency.

On trade, the CPPE urged trade facilitation and removal all non-tariff barriers to trade.

“Removal of all customs checkpoints within the country. The practice of intercepting cargoes that have been duly cleared at any of our ports should be discontinued.  The practice has been proven to be extortionist,” it said, even as it stressed the need to ensure a tariff regime that adequately protects local industries.