For Nigerians to enjoy subsidy and Forex savings, the federal government must plug revenue leakages by enforcing transparency at NNPCL, Customs, FIRS and MDAs.
An economic expert, Olu Olorunda, told LEADERSHIP in an exclusive interview in Osogbo, Osun State, that the government must also boost oil production by securing pipelines, curbing oil theft and investing in exploration.
He further called for diversification of exports in agriculture, ICT, mining, and manufacturing and for investment in infrastructure by allowing real savings to go into rail, power, and refineries.
Olorunda stressed the need to strengthen institutions, fight corruption, reform public finance, and enable citizen monitoring, adding that states and local governments must be held accountable for post-subsidy removal earnings.
His words: Why is President Bola Tinubu still borrowing?, debt burden in which over 80–90% of revenue goes to debt service, low oil output in which production is stuck at 1.3 –1.4mbpd instead of 1.8mbpd.
He added that transition costs in floating the Naira and subsidy removal caused inflation and leaked systems, draining whatever funds are left.
The expert posited that things are not adding up because the “savings” are not real cash inflows, adding that they are costs avoided and not new money earned.
“Yet revenues are still too low, debts too high, oil production too weak, and corruption too strong. That’s why the government keeps borrowing despite the talk of savings.”
He concluded by saying that the $18 billion (forex subsidy) and $20 billion (fuel subsidy) are not automatic cash for the project, adding that they are fiscal reliefs.
“Unless leakages are plugged, oil output rises, and states use their bigger allocations wisely. These “savings” will vanish into thin air. But if they are managed well, they could transform Nigeria’s infrastructure and uplift millions, the expert posited.
