Finance Commissioners urge Tinubu to pay petrol subsidy accruals into Federation Account

*The Finance Commissioners, under the aegis of the Forum of Commissioners for Finance of Nigeria, ‘sincerely commend the President (Bola Tinubu) for having that political will to do that first day in office’

Isola Moses | ConsumerConnect

As fuel subsidy removal discussions and socio-economic implications continue to dominate public discourse across the West African country, the Nigerian Finance Commissioners have urged President Bola Ahmed Tinubu’s administration to ensure all accruals from petrol subsidy removal are paid into the Federation Account.

ConsumerConnect learnt David Olofu, outgoing Chairman of the Forum of Commissioners for Finance of Nigeria and former Finance Commissioner in Benue State, made the call at a valedictory session for outgoing Finance Commissioners held Friday, June 9, 2023, in Abuja, FCT.

State Finances Chiefs laud President Tinubu for subsidy removal

Commending President Tinubu on the announcement of the removal of subsidy, Olofu said, as finance experts, the forum, like other Nigerians, had long yearned for petrol subsidy removal, agency report said.

He stated: “We would like to sincerely commend the president for having that political will to do that first day in office,.

“That is what we had been yearning for. He came, his first day in office, he was able to achieve that which we have always asked for.”

In regard to how the current administration  should manage the funds from the subsidy, Olofu said that the Constitution provided for all Federation revenues to go into the federation account.

The former Commissioner also noted: “Nobody has any authority whatsoever to deduct any amount from federation revenue.

“So, I will align myself with the position of the Constitution and recommend that all the accruals go into the federation account and let it be disbursed from the Federation account.”

Olofu, nonetheless, advised the Federal Government should develop policies and programmes that could address the challenges Nigerian consumers are currently facing due to the increase in the pump price of fuel due to the fuel subsidy.

“I believe that the president has the capacity and knowledge to be able to do that decisively. He has already started it by proposing a wage increase for workers, but that has to be done alongside sub-nationals because the sub-nationals have the bulk of civil servants in this country.

“I believe he is on track, but apart from the wage increase, we also have to look at issues of infrastructure because we believe strongly that if we can wrap up infrastructure in this country, it will also help to improve the living standard and bring down the cost of living,” said he.

Likewise, Wale Akinterinwa, incoming chairm5an of the forum (and finance commissioner in Ondo),  reiterated that the subsidy removal was an overdue issue, lauding Tinubu for his action.

Akinterinwa noted “well, we are going to feel the pain we are feeling in the short run, but in the long run, it is in the best interest of everybody.”

Mohammed Shehu, chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), hoped that “as the years go by, the agitation on federal might or federal imposition on a lot of things would become a thing of the past.”

The RMAFC Chairman also stated: “This is an opportunity for states’ revenue mobilisation and all other agencies to collaborate in the area of increasing internally generated revenue of states and diversification of the economy.”

According to RMAFC Chief, the fuel subsidy removal was “good for the economy”.