Subsidization of Politicians’ Lifestyle Must End – Moghalu

Former deputy governor of the Central Bank of Nigeria, Kingsley Moghalu, has called for an end to the subsidization of the lifestyles of Nigerian politicians.

According to Moghalu, who lamented that $1.5bn was spent to purchase SUVs for lawmakers, such doesn’t encourage Nigerians currently bearing the heat of economic hardship.

He, however, supported the removal of petrol subsidy which is mostly blamed for the economic hardship faced by Nigerians.

He shared on X, “Whatever the economic argument for removing subsidies on imported petrol (now apparently restored through the back door to prevent further increases in the price at the pump) and forex, one subsidy stubbornly clings on: the subsidization of Nigeria’s political class.

“As I commented at the time, spending around N160 million to purchase imported SUVs for each member of
@nassnigeria when Nigeria was seeking to borrow $1.5 billion from @WorldBank sent the wrong signal to Nigerians and investors.Much about our economic problems is beyond economics

“The subsidization of the lifestyles of Nigerian politicians must end before Nigerians can be persuaded on the economics of subsidy. Again, as one has noted, there is of course a whole separate argument about how competently the subsidies removal was handled. Subsidizing an effective nationwide public transportation system at a fraction of the cost of the petrol subsidy would have been the smart economic choice given our poor fiscal situation. Most economically developed and emerging market countries of the world do this.

“The subsidies had to go because there was just no choice. But it’s not just about subsidies per se. It’s more about WHAT is subsidized, & how. N500 billion a year can subsidize a public transport system nationwide. That’s different from N5trillion a year for a fraud-ridden scam.”

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