An unanimous economic analyst has argued that the boast by the government of President Ahmed Tinubu of having saved $10 billion in one year as a result of the removal of subsidy on petrol in 2023 cannot be compared to the loss of $450 Billion in value in the same period.
“Nigeria has lost about 450 billion dollars in value, and standard of living have fallen in one year in order to save 10 billion dollars,” the analyst said and asked: “does this make any sense at all?”
According to the expert, the losses that occured within the macro and micro economy in order to save 10 billion dollars because of the fuel subsidy removal including the fact that GDP has lost approximately 200 billion dollars in one year
The expert said that inflammation went up by almost 500 percent in some sectors whereas life expectancy was reduced by almost 10 points.
Another loss, the analyst said, is that the government spent another five billion dollars on palliative approach to mitigate subsidy removal effects.
“It now costs the government five times more to fund any project. Simply put, a 100km road that could have cost 100 billion naira now costs the government 500 billion Naira to build, meaning that government can only build fewer infrastructure due to its own foolishness and potential for economic recovery was. reduced to almost non existent
“There are massive job losses as many businesses fold up as a result of the harsh fall out of reckless subsidy removal.
“Debt profile shot up from 60 trillion Naira to 140 trillion in just over a year.”