The Presidential candidate of the Labour Party (LP) in the February 25, 2023 election, Peter Obi, has described fuel subsidy as an organised crime.
Obi also lamented the ‘dollarisation’ of the Nigerian economy, stating that the Naira should have been devalued instead of being allowed to float without any form of control.
The LP Presidential flag bearer, who spoke on Monday on Arise TV ‘The Morning Show,’ said he would have taken different approaches in the removal of fuel subsidy and the resolution of the looming strike by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).
According to Obi: “Fuel subsidy is organised crime. I said it repeatedly that it should be removed. For me, the approach would have been, is to remove the corruption and criminal side of it and remove the excess demand.
“By doing this, you would have reduced it by 50 per cent. The remaining 50 per cent is what we would have been able to, after consultation with various stakeholders in order to find a way in an organised manner, remove and show the proceed of the gains of the removal to be invested in critical development areas.”
On the dollarisation of the economy, the former Anambra State Governor stated that the use of the dollar in the country has led to unproductivity.
Obi said: “Dollar has become the underground currency of our economy; it shouldn’t be. We have a currency called the naira. All the things people use dollars to do that are not productive should be removed.
“I can assure you that when you remove it, it can strengthen the currency. Today, even when you want to do party primaries, people share dollars. That is not our currency.
“There should be a stiff penalty in dealing with the issue. If people earn dollars legitimately, let them spend it the way they want. However, it has now become a means of corruption and criminality in our system.”
On the volatility of the naira, Obi advised, “What you should have done is devalue the currency while trying to manage the supply by making sure you deal with issues that control the exchange rate. Which is the reserve. And what controls your reserve is your export. Especially, oil and other minerals. Encourage (export of) those things and then deal with issues of foreign exchange while trying to manage what you have.”
On the issue of ameliorating the hardships in the country as a result of government recent policies especially removal of fuel subsidy, the LP Presidential candidate said the recent palliatives introduced by the Federal Government were brought about as a result of “limited thinking” of people in power.
Stating that palliatives are temporary solutions, Obi said the proceeds of fuel subsidy removal should have been invested in education and health which are the main keys to bringing Nigerians out of poverty.
“If you look at what this country has been doing since inception, you could see announcements with limited thinking. Which again produces limited outcome. We need to find a way in an organised manner, to remove and show the proceeds or the gains of the removal to be invested in the critical development areas of education, health, and bringing people out of poverty,” Obi said.
“When you do it in that an organised manner, with proper palliatives that are well structured, you would have seen Nigerians going along with you.”
When asked if he would be willing to work with the current government, he said, “We are at the point where we are challenging the process and that has to come to a logical end before any other thing. Even being in the opposition is part of building the government.”