Stephen Ukandu, Umuahia
A professor of Banking and Finance at the Michael Okpara University of Agriculture Umudike, MOUAU, Professor Sabastine Uremadu, has posited that the only panacea to Nigeria’s economic recovery is restoration of fuel subsidy.
Professor Uremadu who gave the advice while delivering the 60th inaugural lecture of the university titled: “Navigating the Trade-Off: Profitability Vs Liquidity in Nigerian Investment Environment,” attributed Nigeria’s worsening economy to Tinubu’s removal of fuel subsidy without necessary preparations.
He, therefore, advised President Ahmed Bola Tinubu, to stop sharing money in under the guise of palliatives.
The Don also urged the President to abolish multiple taxation and create attractive business environment for investors.
Criticising the idea of Government sharing money to citizens in the name of palliatives to cushion the effects of hash economy, Professor Uremadu argued that such approach only worsens the bad economy.
According to him, beneficiaries of such palliatives never engage in any economic activity that could help revive the economy but rather wait for the next sharing time.
Professor Uremadu argued that the sensible thing for Government to do to reset the economy, “is to restore fuel subsidy.”
Maintaining that the Nigeria economy nosedived following the unilateral removal of fuel subsidy by Mr President, an action that triggered hyper inflation and economic instability.
According to him, the best quick fix to the country’s economy is fuel subsidy restoration as the price of fuel affects every other economic activity.
He said: “Fuel is a variable that touches on everything, and whatever affects fuel affects everything. There’s no country that does not have subsidy. Even America subsidises her agricultural products. See what has happened to the Nigeria economy since the removal of fuel subsidy.
“I have my friends serving in President Tinubu’s Government and I want him to succeed because there are some good things he has done. But let him restore fuel subsidy. I have studied the Nigeria economy very well. The right thing to do now is to restore fuel subsidy. Once that is done, inflation and exchange rate will come down.”
Professor Uremmadu also blamed the hardship in Nigeria on multiple taxation, regretting that it scares investors.
He advised the Federal Government to create a friendly environment to investors to inject the needed funds for Nigeria’s economy to recover.
“For us to recover, the President has to restore fuel subsidy immediately; he has to remove multiple taxation; pursue effective fiscal policies; and inject technocrats to help drive the economy.
“We seriously need such a friendly economic environment that will attract foreign direct investment for our economy to re-bounce.”
In a remark, the Vice Chancellor, Professor Maduebibisi Offor Iwe, commended Professor Uremadu for his well-researched and deep-rooted lecture, and for making recommendations that could help restart the economy.
The VC appealed to policy makers to consider the “salient recommendations,” and create favourable environment so that people in business can thrive.”
He further said that Government should allow domestic investment to thrive for economic growth.
The inaugural lecture was well attended by friends and associates of the lecturer as well as members of the university community.
