Kyari Bukar, former Chairman of the Nigerian Economic Summit Group (NESG) and Managing Partner at Trans-Saharan Investment Corporation, has suggested that President Bola Tinubu should have taken a gradual approach to removing the petrol subsidy to reduce the impact on Nigerians.
In an appearance on Inside Sources with Laolu Akande, a socio-political program on Channels Television, Bukar proposed that fuel prices should have been incrementally increased by 5% every six months. He argued that this phased approach would have eased the transition for the public.
“When formulating economic policies, the input of participants in the economy is essential,” Bukar stated. “If a policy is perceived as harmful, people will either leave or find ways to circumvent it.”
He noted that anxiety in the country has intensified, with rising economic hardship leading to unrest. “There’s widespread hunger, and people are reacting out of frustration. These issues are linked to key policies like the fuel subsidy removal and the harmonisation of exchange rates.”
While Bukar acknowledged that both policies were sound in principle, he criticised their execution. “Fuel subsidy removal should have been done gradually. The unintended consequences should have been anticipated, and recommendations made to the President before the policy was announced. The vision was right, but the implementation was flawed.”
President Tinubu announced the removal of the petrol subsidy during his inauguration on May 29, 2023, which led to fuel prices soaring from around ₦200 to over ₦1,000 per litre, exacerbating inflation. Additionally, the administration unified the exchange rates, causing the naira to drop sharply, with the dollar rising from ₦700 to over ₦1,600 in both official and parallel markets.
