SUBSIDY REMOVAL: Soludo says Nigeria ‘muddling through disruptive reset’
Governor of Anambra State, Prof. Chukwuma Soludo, has articulated that Nigeria is currently experiencing a significant and transformative shift due to the removal of various subsidies by the current administration under President Bola Tinubu.
This change is characterized as a “fundamental and disruptive reset,” which aims to address long-standing economic issues that have plagued the country.
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The removal of subsidies, particularly those related to fuel, foreign exchange, and electricity, has been framed by Soludo as a necessary step towards ending what he describes as a “debilitating scam.” Historically, these subsidies have disproportionately benefited the urban elite while failing to create widespread opportunities for the general populace. By eliminating these financial supports, the government seeks to redirect resources towards more productive initiatives that can foster economic growth and social equity.
‘Muddling-through’ phase
Soludo emphasizes that Nigeria has entered a phase he refers to as “muddling-through,” which requires careful navigation through the shocks caused by these disruptive changes. He advocates for crafting a pragmatic new deal for Nigeria that includes an emergency national infrastructure plan reminiscent of the U.S. Marshall Plan implemented after World War II. This plan would focus on public works projects and financial reforms aimed at revitalizing the economy.
Socio-economic challenges
In his lecture titled “Let Us Make a New Deal for Nigeria,” Soludo highlights several pressing socio-economic challenges facing the nation. He points out that criminal activities such as banditry and kidnapping have become prevalent, indicating a shift in societal values where monetary gain is prioritized over ethical considerations. He calls for a new social contract that guarantees basic socio-economic rights for all citizens, encouraging graduates and young Nigerians to actively participate in shaping their country’s future.
Positive signs amidst challenges
Despite acknowledging the difficulties posed by subsidy removal and other economic reforms, Soludo notes some positive developments such as minimum wage legislation and proposed tax reforms. He stresses the importance of coordination between federal and state governments to ensure effective implementation of these reforms.
