During an interview, Utomi discussed the recent increase in fuel prices and attributed the country’s current predicament to the misuse of subsidies.
He highlighted that while nations like the United States and European countries use subsidies to support production, Nigeria has focused on “subsidized consumption for pleasure,” leading to poor resource management.
Utomi stated that a thorough clean-up of the NNPC could reduce corruption in the subsidy system by 60 percent. He stated that, if given the opportunity, he would prioritize this clean-up effort.
“I think that the typecasting of what a subsidy is has put us in a bind. I probably would have begun by trying to clear up the mess in the industry, the NNPC. Believe me, the NNPC is one of the most opaque and unreliable organisations in the world. Quote me any day. The first thing is that you clean up the NNPC, and you will reduce the so-called subsidy by more than 60 per cent by just cleaning up the corruption in the NNPC. If I’m given the job, I can do it,” he said.
According to Utomi, addressing the corruption within the NNPC would substantially decrease the subsidy burden.
He further explained that while subsidies are not inherently beneficial, they can be useful in driving production and maintaining quality of life if strategically applied.
Utomi also claimed that much of what is labeled as subsidy in Nigeria is actually a form of graft and smuggling. He pointed out that post-COVID-19 consumption figures have surged, stating that inefficiencies and corruption are significant contributors to the high prices. He argued that resolving these issues before imposing higher prices on citizens is crucial.CONTINUE FULL READING>>>>>
