In a recent interview with Channels Television, Professor Jideofor Adibe, an expert in Political Science, disclosed President Tinubu’s claim of saving N1 trillion within a span of two months through the removal of fuel subsidy. He reveals the need to assess the potential losses incurred by businesses during those two months, emphasizing that every policy has associated costs, regardless of the savings it generates.
Professor Adibe questioned the feasibility of generating N1 billion in a year for any business venture, in light of the President’s statement about the massive savings. The information provided by Tinubu included plans such as cultivating 150,000 acres of land and supporting 75 manufacturing enterprises, each receiving N1 billion at a 9 percent interest rate repayable within 12 to 16 months.
One crucial aspect that remains unclear is the extent of business losses resulting from the abrupt removal of the subsidy, raising concerns about the holistic impact of this policy decision. Understanding the full scope of such consequences is vital in evaluating the efficacy of the savings claim.
Professor Adibe also pointed out that the President’s statement lacks crucial details, especially in terms of the type of businesses that can realistically achieve the level of success required to repay N1 billion within a year. This prompts us to contemplate the feasibility of such endeavors and the challenges they may entail.
“He said he was able to save one trillion in two months. What we also did not know was how much business was lost as a result of the removal of the subsidy the way it was done, because obviously, every policy has a cost, and it’s not just what you saved. Most of these things he mentioned include cultivating 150,000 acres of land and making sure that you’re nurturing 75 manufacturing enterprises, each of which will get N1 billion at a 9 percent interest rate, repayable between 12 months and 16 months”.
