Restoring fuel subsidy could cripple 15 Northern states, OAU professor warns
A Professor at Obafemi Awolowo University, Ile-Ife, Professor Tunji Ogunyemi, has warned that a return to the petroleum subsidy regime could have devastating consequences for Nigeria’s public finances, including the possible collapse of more than 15 states in the northern region. Ogunyemi, an economic historian, lawyer and public affairs analyst, argued that restoring the subsidy […] The post…
Professor Tunji Ogunyemi, an economic historian and public affairs analyst at Obafemi Awolowo University, has cautioned that reintroducing Nigeria's fuel subsidy could severely harm the nation's finances and potentially cause the collapse of over 15 states in the north. Ogunyemi, speaking on an Open Forum 360 podcast, believes that restoring the subsidy would significantly diminish the funds in the Federation Account, which serves as the financial backbone for most states in Nigeria.
With only a handful of states able to operate without monthly federal allocations, a reduction in subsidy funds could lead to dire consequences, including the inability of many states to pay salaries, pensions, and meet their daily expenditure. Ogunyemi also criticized the African Democratic Congress presidential candidate, Atiku Abubakar, for his proposed subsidy restoration, calling it politically motivated and urged to be more transparent about his policies.
Written by urgent.news from Ripples Nigeria's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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