The Manufacturers Association of Nigeria (MAN) has reacted to the recently-approved N4 trillion as regards the petrol subsidy fund in spite of public outcry, by the House of Representatives on Thursday, April 14, 2022, saying it will ruin the country’s economy.
The President requested the lawmakers to approve an additional N3.557 trillion in addition to the N442.72 billion provided in the 2022 budget for subsidy. The House also approved the reduction in crude oil production quota from 1.8million barrel per day to 1.6 million barrels per day and a $73 oil price benchmark.
MANs President, Mansur Ahmed adds that Nigerian’s have placed so much importance on fuel as against health, education and security. He encouraged government to invest the subsidy money on critical areas as it will make a bigger impact in the economy. Adding that subsidy is a yoke on the economy.
Corroborating Ahmed’s claim, an economist and Chief Executive Officer (CEO) of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf expressed conviction that the petrol subsidy approval will lead to higher debt service, an increase in fiscal deficit, increasing inflationary pressure, and even naira depreciation.
