The Emir of Kano and former Central Bank governor (CBN), Emir Sanusi Lamido
Emir of Kano Muhammadu Sanusi has mentioned it could actually solely take angels to run the Nigerian National Petroleum Corporation (NNPC) in a clear means.
Emir Sanusi known as for the cost of subsidy to be scrapped, including that the cash must be used to energy, agriculture, schooling and well being sectors.
“It is not about the persons in the NNPC but about whether anyone can make a system operate honestly when there are such huge arbitrage opportunities. We need to import angels for that to happen,” he informed Punch.
“So, for me these are the problems. It is an economist’s nightmare. Sadly the very motive this subsidy must be scrapped might be the rationale it by no means shall be. For those that profiteer from it, it's simply too good to be true.
“The petroleum minister has disclosed that this authorities has spent N1.4trn already on gas subsidy and for many of this era, oil worth was between low and average.
“You can imagine how much we will pay as oil price goes up. Imagine if that money had gone into the power sector or agriculture and education and health. So for me this government inherited a bad situation but if it continues with these programmes, the next government will also inherit a bad situation which is a shame.”
The former Central Bank of Nigeria governor also stated that, “What we've just isn't a subsidy. The federal authorities ensures Nigerians a most worth per litre for gas. And that is a product we import. And its worth relies on unpredictable underlying commodity costs.
“So what the federal authorities is saying is look it doesn't matter what the value of oil is internationally, what the change price is, what rate of interest is, what delivery clearing and demurrage is, I'm so wealthy that I'll make sure you get gas at this most worth and I'll pay the distinction.
“Meanwhile, the balance sheet of the federal government is not hedged in anyway against these risks. As a professional risk manager, I have never seen a policy that is so guaranteed to bankrupt anyone as this policy.”