Proshare Logo
   Market Date: 30-01-2015   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Elections Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Subsidy removal will support fiscal viability of Nigeria, says Peterside

Category: Oil Sector

  Read (1857)
Subsidy removal will support fiscal viability of Nigeria, says Peterside

January 10, 2012

Atedo Peterside, chairman Stanbic IBTC Bank says the removal of petrol subsidy is a requirement for the fiscal viability of Nigeria and that the measure also helps to democratise the allocation of resources in the country.

Peterside, who is also a member of government’s economic management team, told Business Day yesterday, that while he has nothing against subsidy as a concept, he believes that states and local governments should be allowed to determine how best to allocate their resources.

What the removal of subsidy ensures, he says, is to force the federal government and its agencies to stop administering the resource which does not belong to it in the first place, and allows each state and local government to get its rightful share, and if it chooses, design a subsidy programme for its own people.

The states in Nigeria stand to receive about N411 billion in savings from the subsidy removal, while local governments across the country will collectively receive about N203 billion as their share from savings from the abrogation of the petrol subsidy regime. About N478 billion will accrue to the federal government.

Peterside said: “The level of ignorance in this country is amazingly high. Of the N203 bn additional revenue which will accrue to the LGAs on account of the removal of subsidy, Kano state LGAs alone will get the highest of N11.7 billion.

“So, instead of the people of Kano demanding for their N11.7 bn for their LGAs, they are abusing Central Bank Governor, SanusiLamidoSanusi, for arguing to bring them an extra N11.7 bn, an amount which would otherwise have been consumed largely in Lagos and neighbouring countries.”

Speaking earlier on a Channels Television programme, Peterside dismissed the notion that Nigeria was rich and could afford such a hefty annual subsidy bill.

He said :”We are not a rich country. We are a poor country. The poorest state in Nigeria is Jigawa state. Ninety five per cent of the people in Jigawa state are poor. Jigawa deserves its own share. From my own little analysis, Jigawa and its local governments should be getting about N14 billion of that money annually transferred to them. So the question should be, does Jigawa state, the poorest in Nigeria where 95 percent are poor, does Jigawa state have a right in 2012 to receive an extra N14 billion which rightfully belongs to them, but which historically has been spent on the rich, say Lagos, and also diverted to neighbouring countries? So, this is also about equity. The poorest state, as I said earlier, is Jigawa, the second poorest state is Kebbi. In Kebbi, 89 per cent of the people there are poor. And I can go on and on. In Bauchi, about 86 per cent of the people are poor. I can go on and on.”

Of the total N411.03 bn accruing to the 36 states, ten states have emerged as the highest beneficiaries. The ten are led by Rivers with N44.6 bn, Akwa Ibom with N43.4 bn, Delta N40.9 bn, Bayelsa N33.8 bn, Ondo N12.5 bn, Kano N11.2 bn, Lagos N10.1 bn, Edo N9.4 bn, Kaduna N8.9 bn and Imo N8.7 bn. Ebonyi state will get the least - N5.8 bn per annum, at 2011 rate of subsidy and this figure excludes the sum that will accrue to local governments in these states.

Source: Businessday


Tags: , 

Comment With Your Facebook or Yahoo! ID

Latest news

News on Oil Sector

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Contact Us
Volunteer Program
Message from CEO

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Discussion Forum

Subscriber Agreement
Privacy Policy
Data Policy
Copyright Policy
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Legal Support Services
Web/Technology Services
File a Complaint

CBN Governor 2014