THE Association of Bureaux De Change Operators of Nigeria, ABCON, has called for the elimination fuel and foreign exchange subsidies in the country. ABCON said the removal would address structural defects in the economy.
In its Second Quarter Economic Review, ABCON stressed that subsidies represent structural defects in the nation’s economy. Speaking at the presentation of the report, Aminu Gwadabe, president, ABCON, said the subsidies are misapplications, which have resulted into creation of economic rents in various dimensions.
He said subsidy of any kind has caused maladjustments in sectoral business structures thereby creating hyper unemployment rates which have triggered unmanageable social unrest like kidnappings, terrorism, banditry, arm robberies and large scale cultism, among others. “We recommend that government should consider the following: Policy of single exchange rate to completely remove foreign exchange economic rent and subsidy for a medium and long term adjustment of the economy from distortions occasioned by decades of subsidy.
“We must observe that we have an inefficient structural system to track surreptitious flow of foreign exchange within the platforms notwithstanding, that the morals to control are lacking. This head of a hydra of fuel subsidy issue should be addressed headlong by critically reorganising the sub sector, including deregulation and decentralisation of fuel importation to ensure competition which is necessary to guarantee fair price,” he said.
– July 26, 2019 @ 17:19 GMT |