Busted: Details about How Obasanjo, Gowon Formalised Fuel Subsidy Regime Emerge

• Former military heads of state, Olusegun Obasanjo and Yakubu Gowon, have been faulted for institutionalising fuel subsidy regime in Nigeria
• Niyi Akinsiju, the chairman of IMPI, said the two former heads of state introduced subsidies when the country was making lots of profits from the sales of oil
• Akinsiju then faulted the labour unions for kicking against the implementation of fuel subsidies, adding that it was no longer sustainable

Independent Media and Policy Initiative (IMPI) has revealed that petroleum subsidy in Nigeria started during the time of the two military heads of state, General Yakubu Gowon and Olusegun Obasanjo.

The media group alleged that the two former Nigerian leaders institutionalised the controversial petrol subsidy during the country's economic buoyancy.

Why Obasanjo, Gowon introduced fuel subsidy

The chairman of IMPI, Niyi Akinsiju, revealed that the two former military heads of state introduced fuel subsidies as a temporary measure to mitigate the impact of rising international oil prices.

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Speaking to journalists in Abuja on Tuesday, September 10, Akinsiju explained that the subsidy was intended as a short-term fiscal response to OPEC's actions, but it has become a permanent fixture in Nigeria's economic landscape.

Labour faulted for kicking against subsidy removal

He expressed disappointment with labour unions for criticizing the current government's removal of subsidy, despite the widespread opinion that it should have been exited before 2023.

Akinsiju highlighted that under Gowon and Obasanjo, petrol prices increased by 40% and 70%, respectively, in response to economic realities. He argued that subsidies were initially introduced to redistribute wealth during times of high revenue but have become a distortion in the economy during downturns.

IMPI believes that the government's efforts to stop subsidy implementation have caused unnecessary uproar, and it's time to reevaluate the policy.

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Student loan: Obasanjo makes case for private university

Legit.ng earlier reported that former President Olusegun Obasanjo demanded the inclusion of private university students in the student loan scheme.

Obasanjo joined the vice-chancellor of Bells University, Professor Jeremiah Ojediran, in Otta to make the demand.

The former vice president also called on President Bola Tinubu's Administration to execute the programme without any hindrance to corruption.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng