Fuel subsidy in 2020 higher than defence, education, healthcare budgets — UNILORIN VC

Vice-Chancellor of the University of Ilorin, Prof. Wahab Egbewole, has said Nigeria’s budget spent on fuel subsidy between January 2020 and June 2022 was higher than the budget allocated to defence, education and healthcare sectors. Egbewole, a Senior Advocate of Nigeria, also said between 2006 and 2018, about N10 trillion was spent on fuel subsidies […]

Vice-Chancellor of the University of Ilorin, Prof. Wahab Egbewole, has said Nigeria’s budget spent on fuel subsidy between January 2020 and June 2022 was higher than the budget allocated to defence, education and healthcare sectors.

Egbewole, a Senior Advocate of Nigeria, also said between 2006 and 2018, about N10 trillion was spent on fuel subsidies – a development he described as a significant drain on the government’s finances, adding that only educated Nigerians understand its removal.

He stated this at the University of Abuja, at a programme organised by the El-mavericky Centre for Educational Research and Development in honour of the former Vice Chancellor of the school, Prof. Abdul-Rasheed Na’Allah.

“Economically, fuel subsidy removal should contribute to fiscal savings for the government, allowing room for funds to be redirected to priority sectors such as education, infrastructure and healthcare.

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“For instance, the N3.92trn allocated to petrol subsidy between January 2020 and June 2022 surpassed the combined federal budgets for healthcare, education and defence for the 30-month period.

“If that subsidy was removed, that would make a huge impact on the critical sectors if the funds were properly utilised. Between 2006 and 2018, about N10trn was spent on fuel subsidies, a significant drain on the government’s finances,” the varsity don said.

Speaking on the theme of the programme: “A march to the future: addressing issues of university administration in post-subsidy Nigeria”, he said the masses who would mainly care about prices would blame the government for inflicting hardship on them.

“The subsidy removal would be interpreted as an anti-poor policy and make the ruling party unpopular, if not well handled.

“But the situation was better handled and the government was able to communicate its sincere intentions to the satisfaction of those who may have wanted to exploit the situation for political advantage. The context of post-subsidy removal is that of heightened economic reality, social concerns and political sensitivity.