The Centre for the Promotion of Private Enterprise (CPPE) has expressed reservations about government’s political will to remove fuel subsidies.
Although the CPPE stated that the outlook for the Nigerian economy in 2022 is largely positive, it noted that Gross Domestic Product (GDP) growth would remain fragile and projected at three per cent threshold.
The centre warned that the seemingly intractable problem of insecurity remains a significant risk to the economy and the impact on some sectors, especially agriculture would be profound.
The CPPE added that there are also concerns about the effect on the perception of Nigeria as an investment destination and implications for Nigeria risk rating.
According to the CPPE, the timing of the proposed subsidy removal, alongside the 2023 elections, raises concerns for political actors to implement certain anti-populist policies.
In the 2022 economic outlook released yesterday, the Chief Executive Officer of CPPE, Dr Muda Yusuf, noted that the burden of petroleum subsidies on government finances might persist in 2022 despite the Petroleum Industry Act (PIA).
Indeed, the Nigerian National Petroleum Company Limited has put the amount spent on subsidising Premium Motor Spirit, popularly called petrol, between January and October 2021, at N1.03tn.
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