A former minority whip of the House of Representatives, Samson Osagie, has called on President Ahmed Bola Tinubu to ignore the International Monetary Fund (IMF) and other Bretton Woods institutions’ recommendations to phase out all forms of subsidies.
He said such advice by the monetary bodies is capable of worsening the already bad economic situation in the country.
Osagie, who lamented the current economic hardship the citizens are confronted with also urged the president to bring to book all subsidy looters in all sectors adding that “the mass of the people are suffering for the corruption of the few who made the subsidy regime a criminal and fraudulent enterprise to the detriment of the heath of the nation and the welfare of the citizenry.”
In an open letter to the president, Osagie said one of the key responsibilities of the government is the welfare and security of its citizens and to alleviate the suffering and pains of the people.
He said, “At the time of making this recommendation Nigeria inflation rate stands at a whopping 28.92 percent with food inflation hovering around 30 percent in the past one year. Exchange rate has ballooned to the detriment of the nation’s currency, the Naira to an all-time low of N1, 470 to $1.
“The Nigerian Economic Summit Group (NESG) has said that Nigeria‘s Gross Domestic Product will grow at 3.50 per cent in 2024. The group made the forecast in its 2024 macroeconomic outlook report, titled ‘Economic Transformation Roadmap: Medium Term Policy Priorities’, in January, 2024.
“In 2024, Nigeria’s total debt stock will climb up by at least 22.15 per cent (N19.47tn) to N107.38tn in 2024 if the borrowing plan is followed to the letter as envisaged by the 2024 Federal Budget.
“Interest rates have continued to hover beyond the current Central Bank rate of 18.75% to as much as 30% in deposit money banks with the results that new investments are exceedingly difficult to embark upon by investors.”
The political economist further added, “All these put together and many more micro and macro-economic indices have combined dangerously to make life a hell for the citizenry.
“The IMF must first and foremost be supportive of the survival of the Nigerian people before recommending the path to a sustainable debt servicing plan for the country.”
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