By Nneka Nwogwugwu
The Nigeria Economic Summit Group (NESG) released a communique on Sunday, urging the Nigerian government to enforce systematic subsidy removal.
The communique by the Board of Directors of NESG with subject ‘Of Hope and Despair…Not Too Late To Turn The Curve’, was signed by Asue Ighadalo for the Board.
“We urge the Federal Government to explore a systematic subsidy removal programme that cushions the impact on our most vulnerable population through a well-coordinated and effectively transmitted social protection regime.
“According to reports from the Federal Ministry of Finance, Budget and National Planning, it is clear that the current fuel subsidy regime’s debilitating impact on our fiscal fragility cannot be overstated”, the communique noted.
As part of its recommendations, the stakeholders also urged for a decisive action to be taken to tackle government’s revenue challenges.
The communique reads in part, “Our appeal to Mr. President is that a lot can still be done to turn the curve within the remaining 10 months of this administration. This requires tough choices and decisive actions, with no sacred cows.
“As one to whom providence has bestowed the honour of leading this nation time and again, your administration can begin to lay the groundwork for a legacy that a new government can build upon from Monday, 29 May 2023.
“A decisive action to tackle the Government’s revenue challenges which cannot be divorced from leakages through the large-scale crude oil theft; difficult operating environment for businesses, and lack of innovation in tax collection/administration, among others, that have resulted in low accretion to the nation’s revenue base.
‘We strongly believe these leakages have continued unabated because of the absence of sanctions and ineffective tax systems.
“We must return to the path of debt sustainability in the face of dwindling revenues not to create a debt burden for future Governments and, indeed, future generations.
“We must prioritise our expenditure, limit our spending to items we can sustain, and eliminate wastage and graft in Government. Governments, across all tiers, should lead by example through a drastic reduction in governance costs (such as running costs of the legislatures, the proliferation of government agencies, etc.) to reflect the austere times we face.
“We strongly advise greater transparency and simplicity in the management and communication of various subsidies (petroleum products, electricity, etc.) to establish their true costs that benefit the people.
“Urgent action is required to ensure food self-sufficiency by prioritising critical value chains and supporting private sector-led interventions to curtail this crisis and build a vibrant and sustainable food ecosystem in Nigeria based on consistent incentives and sanctions.”
The NESG also called for a new social contract between the Government and the people of Nigeria to reduce the growing trust deficit.
“The goodwill that a government enjoys from its people is no different from the operation of a bank account – in this case, an emotional bank account.
“Good governance yields additional deposits while each governance failure gradually depletes the account.
“There is no doubt that the nation is at an inflection point, and the actions (and inactions) of leadership will have significant implications for the direction of inflection.
“It is still possible to turn the tide, and it is not too late to bring the nation out of the current quagmire”, it pointed.