Mr Daniel calmed fuel subsidy removal by President Bola Tinubu has started yielding positives such as increased federal allocations to states.
Bola Tinubu and Gbenga Daniel (Credit: First Weekly Magazine)
Gbenga Daniel, a former governor of Ogun state, who is now the senator representing Ogun East district, has said that the monthly allocations to states in June 2023, “almost doubled” following the removal of fuel subsidy by President Bola Tinubu.
Mr Daniel, who was speaking on the assessment of the government of Mr Tinubu, who had now spent 30 days in office, agreed that the subsidy removal has its own implications.
“I was informed that the allocation that went to the states this month is nearly double of what was a month ago,” Senator Daniel said while appearing as a guest on TVC on Thursday. “Although, the bold decision that was taken to withdraw (removed) subsidy has major implications.”
Shortly after his inauguration on May 29, Mr Tinubu declared that there would no longer be a petroleum subsidy regime, revealing that the 2023 budget he glimpsed does not contain it.
Mr Tinubu stated that funds meant for the subsidies would now be diverted to public infrastructure, education, health care and job opportunities.
Nonetheless, the 2023 budget only has a provision for fuel subsidy till June.
For years, the Nigerian government has subsidised fuel and fixed retail prices of petroleum products although the payment has threatened the nation’s fiscal position and impacted the government’s ability to fund developmental projects.
Speaking further, Mr Daniel explained that the removal of the fuel subsidy has its downturn but efforts are being made to provide palliative measures to cushion the effect.
He, however, noted that Nigerians have started experiencing the effect of the economic policy that Mr Tinubu’s government had put in place.
“Of course there are downsides and I’m happy that efforts are being made to provide all forms of palliatives that can stem the side of some of the expected downsides.
“But I have no doubt that in a few weeks, months, we would have a new environment and things would start to happen.”
He further revealed that “indirectly, those dividends of democracy that he (Tinubu) talks about have started happening” while stressing that “and if governance at the state level can also thrive very hard to ensure that some of these resources that are coming into the state are also allowed to be (sic) down those are the ways we can start feeling that the removal of this subsidy is having a direct impact.”
Since the removal of the fuel subsidy, the pump price has pushed from N194 per litre to over N500 with variations in states even as Nigerians had been battling with increase in food prices and commodities.