Subsidy Removal : Reduce Tariff On Importation,Others – Economist Tells FG

An associate professor of economics history at Obafemi Awolowo University Ile Ife, Dr. Tunji Ogunyemi has advised the federal government on how subsidy removal impact on Nigerians can be mitigated.

Granting interview on Rave FM Osogbo on Friday Ogunyemi analyzed how the federal government intervention can reach an ordinary citizen of Nigeria to mitigate the negative effect of subsidy removal.

He said the federal government should suspend or reduce tariff in the area of importation and the use of certain vehicles, particularly those use for conveying large numbers of people.

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He also stressed that there should be reduction of tariff on consumable goods, dairy products and poultry products.

He further urged Federal government to increase the salaries of his workers and budgetary allocation to capital budget.

According to Dr. Ogunyemi,” number one, there should be either a suspension or reduction in tarriff in the area of the importation and the use of certain vehicles.

“Particularly the one for conveying large numbers of people not jeep but if you have cars, buses, you will reduce the tariff on their importation that will trickle-down to the ordinary man.

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“Two, you can also reduce tariff significantly on some consumables like poultry, like dairy products it will also trickle- down to the ordinary man.

“The third, is to significantly without Nigeria government deceiving himself, thinking that thirty thousand naira is a wage, significantly increase the salary of workers the time has come.

“The time has just come and it is durable, and what the federal government is going to use to increase the salary of his workers will be far far less than what it will spend on subsidy in just one month.

“The forth one that I think the government can also do is to introduce for those who work in the urban centres, maybe something in the area of loucher voucher you know a loucher voucher of about a hundred thousand to a very senior officer should cost less than twenty thousand naira.

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“The reduction in the tariffs in the products that I have mentioned before will also trickle- down to them.

“Don’t forget the total number of people, the workers that are working for the federal government of Nigeria they are less than four million people, infact all the states of Nigeria do not employ up to four million.

“Even if they will say between federal government and the state government they employ ten million that is just five percent of Nigerian population.

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“So, the trickle- down effect will go to those ones but in terms of the budgetary capacity of government to reach the remainder ninety percent it will come out in the area of capital expenditure.

“From which the money save from subsidy will be use to construct roads, water, urban facilities, education and other things, so, that is how the ordinary man will be reach.

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“The only way the government can actually reach the ordinary man outside of the public service system is to increase budgetary allocation to capital budget.”