Stanley Onuorah, a Nigerian banker, has expressed concern over the economic challenges currently facing Nigeria, particularly in relation to the rising fuel prices.
Speaking on News Central’s Jasiri on Tuesday, Onuorah shared his views on the consequences of fuel subsidy removal and its impact on the nation’s economy.
“I do not envy Nigerians at the moment, and we are not being envied across Africa,” Onuorah remarked, acknowledging the difficult economic situation many citizens are facing.
While Nigeria is often called the “Giant of Africa,” Onuorah pointed out that the country’s current economic reality does not reflect that status.
“Nigeria is truly the giant of Africa, but our reality isn’t reflecting that,” he pointed out.
Onuorah admitted that the fuel subsidy removal was necessary but criticised the government’s approach, stating that it acted prematurely.
“Subsidy needed to go, but the government went ahead of itself. They needed a bit of time to put things in place. But they shot the gun too early,” he said.
A key concern raised by Onuorah is the whereabouts of the savings from the subsidy removal. He questioned why these savings have not been used to alleviate the economic pressures on the Nigerian people.
“If subsidy was truly removed, then where did the savings go?” he asked, highlighting the absence of clear reinvestment in critical sectors.
Onuorah also discussed the price hikes that have followed the subsidy removal, stressing how difficult it has become for Nigerians to navigate the current economic landscape.
The sharp rise in fuel prices has not only affected transportation and energy costs but has also driven up the cost of goods and services, worsening the financial strain on households across the country.
Addressing the ongoing debate surrounding the Dangote Refinery and the Nigerian National Petroleum Corporation (NNPC) Limited, Onuorah noted that the issue involves both political and business considerations.
“There are two sides to it; the political angle and the business angle,” he explained, suggesting that understanding both aspects is essential to grasp the full picture of the pricing challenges.
Onuorah identified the exchange rate as a key factor affecting fuel prices. As Nigeria continues to grapple with foreign exchange volatility, the weakening of the naira has compounded the difficulties associated with importing fuel and other essential commodities. The depreciation of the local currency has contributed to higher fuel costs, placing additional burdens on the economy and the general populace.