The President of the Manufacturers Association of Nigeria, Mr. Kola Jamodu, has thrown his weight behind the planned removal of fuel subsidy by the Federal Government.
Jamodu who told newsmen? that the? removal was? a ‘necessary evil’? for the growth of the country’s economy, however said? that proceeds from the withdrawal must be judiciously?? used? to? fast-track? the? development of key infrastructure such as? power and roads.
He implored? Nigerians to brace up for the challenge and make the sacrifice.
“The subsidy removal is a bitter pill that we have to take sooner or later. Although it is a bit harsh at this point, but I think it is necessary for the good of our economy. In a situation where you have huge amount of money tied to fuel subsidy and it is not properly utilised, it becomes necessary to remove it and use it to restructure other sectors of the economy, especially infrastructure.”
He? disclosed that MAN as an association was not taking any position on the issue, adding that it? would be difficult to accurately? predict? the impact of subsidy removal on petroleum prices.
Jamodu pleaded? with Nigerians to stop speculating about the issue and wait for the indices to become clear to all stakeholders.
Though some experts have contended that manufacturers would be the worst hit by any rise in the price of petroleum products, considering? the fact that? they always resort? to? generators to power their factories, Jamodu? countered by? saying that it was still too early to determine that.
?“Fuel is not the only thing that is needed in the manufacturing industry. Infrastructure is needed to work for the growth of our economy. The roads need to be constructed; electricity is needed; we need an effective rail system. If fuel subsidy is removed, government can then use the funds to work on these infrastructure.
“Our Gross Domestic Product is growing at seven per cent, it is an indication that every sector of our economy needs to be restructured. Let us not keep speculating, it will not help our economy. What Nigerians should be interested in is how the funds that would be saved from fuel subsidy removal would be spent. If it is properly used to fix infrastructure, then our economy would be better for it,”he argued.
The federal government had earlier announced? plans to deregulate the downstream sector of oil and gas industry, which would result in the removal of fuel subsidy starting from January 2012.
President Goodluck Jonathan and the Minister of Finance, Dr. Ngozi Okonjo-Iweala had said that the money saved by the reform would be invested in infrastructure, provision of social safety-nets and other measures to mitigate the impact of the reform.