By Chimaobi Afiauwa, Abuja
The 2023 governorship candidate of the Action Peoples Party, APP, in Abia State, Sir Mascot Uzor Kalu, has urged the federal government of Nigeria to focus more on the formulation and implementation of economic policies that would have a multiplier effect and solve the country’s economic crises, following the removal of subsidies from Premium Motor Spirit (PMS), popularly known as petrol.
The former Abia state Chief of Staff maintained that, taking away subsidies from fuel, which in itself was a palliative measure, and replacing it with another palliative programme, will not yield the desired economic results in the long run.
In an exclusive interview with MUK TV on a current affairs series programme captioned “MUK Talks”, the US-trained Economist advised the government to find permanent solutions to Nigeria’s economic challenges rather than throwing palliatives around.
After identifying cost-push inflation as the causal factor that has exacerbated the cost of living, he alternatively urged the government to boost the manufacturing sector by creating “middle-class manufacturing companies that are sustained by the Nigerian economy.”
Chief Kalu’s advice comes against the backdrop of the proposed palliative programmes President Bola Tinubu reeled out in his nationwide address on Monday, which included the procurement of 3000 CNG Buses worth about N150 billion.
He, on the contrary, suggested that the N150 billion should rather be used to convert tricycles, locally known as Keke, from fuel to gas consumption, noting that if the conversion is done in the country, it would create more jobs for the people.
“For me, instead of buying the CNG buses, I would rather invest the N150 billion on the conversion of Keke. Statistics show that you can convert a keke for about N100,000 to N150,000.
“So, the money can convert about 1 million Keke, and if you spread it around the 36 states and the FCT, you’re looking at 25,000 to 27,000 Keke in each state.
“And this gets faster to the people you are targeting because this is mostly their means of transportation.
“Then you can make provisions of N25 billion for states that have state-owned buses to convert from fuel consumption to gas.”
Sir Kalu also warned that throwing money around in the name of palliatives, which he said represents the old ways of doing things, will send the wrong signal to Nigeria’s foreign investors.
“This type of palliative affects the rating and outlook of the Nigerian economy. If you look closely, when the President came on board and announced the removal of subsidies and the floating rate process, the dollar hovered between 750 and 790 for a long period.
“As soon as the National Assembly approved the N500 billion subsidy loan, the dollar went to 800 and above because world economies think we’re back to the old style of things. They’re not seeing permanent solutions,” he said.
