Fuel subsidy removal will improve businesses – Industrialist
Coleman Wires and Cables CEO George Onafwokan says the removal of fuel subsidies will have a positive impact on the business environment and will also stabilize the country’s economy.
Onafwokan made the claim at a press conference on Saturday in reaction to the federal government’s proposal to eliminate the fuel subsidy.
Mr. Onafwokan said that although the initial effect of the phase-out might cause inflation and the like, in the long run there would be funds for the government to spend on infrastructure.
“I think it’s much better that we spend those trillions in subsidies on infrastructure and on enabling factors that put businesses in the right frame rather than focusing too much on subsidies.
“A well empowered economy and people would always be in a position to be empowered, well paid and jobs will be available.
“If we focus more on that, in the long term, the heat and setbacks may be present in the initial stage, but we must look away from subsidies and move on to a more productive country,” he said.
He added that removing the subsidy would encourage investors to invest in downstream, midstream and refining.
Onafwokan said: “I think the most important thing is that the country will have more money to spend rather than us remaining the country with the most debt.
“We will generate enough money to do business in the country and create infrastructure growth.
“The sooner we improve our infrastructure, the better for our business environment, in terms of competitiveness, liquidity and viability.