As economic conditions in Nigeria continue to fall apart, a widely regarded development economist, Professor Pat Utomi, has advocated for the reintroduction of the petrol subsidy.
In his recent appearance on Channels Television, Utomi articulated that the removal of the petrol subsidy has worsened inflation and poverty, thereby aggravating fuel scarcity and the cost of living.
Pat Utomi Calls for Return of Petrol Subsidy
While speaking, Utomi stated that he was not satisfied with the current policies and therefore emphasized that the government must subsidize necessary commodities, and fuel in particular, in his view which is too important in daily life.
He continued that many developed economies, such as the United States, subsidized critical commodities, including agriculture, to ensure an equitable and economic functioning of the economy. Utomi asserted pointedly that Nigeria must follow the same direction if the suffering of the citizenry is to be alleviated.
Since the subsidy was removed by the government several months ago, the cost of living in many areas has risen substantially, sharply increasing the cost of living for the citizenry, and in fact, causing inflation levels to rise to record levels.
With exorbitant increases in the prices of food, transport, and basic services, the cost of living has continued increasing difficulties in life for the average Nigerian. Utomi stated candidly that reinstating the subsidy would provide quick relief and also prevent further rising costs.
The Effect of Fuel Scarcity and Inflation
The subsidy removal has led to regular fuel shortages, with prices tripling or more in some states. Consequently, transportation and food costs have become astronomical as a result and continue to be a huge burden on the citizenry. Utomi concluded by noting that, in his view, the economic woes facing Nigerians is fundamentally a clampdown due to poor government and a disconnect of the elites and the citizenry.
He denounced the political class as the culprits of the country’s devastation and argued that there was an urgent need to reform the political class. Utomi believes that Nigeria’s political system should exist to enhance the citizens’ well-being and not to enrich a few politicians. He suggested that a bold subsidy policy might help relieve ordinary Nigerians while allowing the government time to reform other aspects of the economy.
Pat Utomi’s call for a return of the petrol subsidy demonstrates a widespread sentiment in Nigeria that is deeply dissatisfied with the present economic situation. With fuel prices continuing to fluctuate and inflation pouring into citizens’ pockets, a subsidy scheme may provide a solace transient from the growing price increases facing a country. The professor’s remarks are indicative of a public unwillingness to accept their skewered political economy, however, moving forward, the message was comprehensively a position for thoughtful economic policy that ceases spontaneous or circumstantial inflation but perhaps can provoke future growth.
