Doyin Okupe, a notable figure in the Labour Party (LP), has commented that President Bola Tinubu will face significant challenges in light of the removal of the fuel subsidy. As reported by Vanguard paper on August 17, 2023, Okupe conveyed this viewpoint through an official statement on his social media handle (formerly Twitter) on Thursday.
In his statement, Okupe expressed that President Tinubu had initiated bold actions by abolishing the fuel subsidy and equalizing foreign exchange rates, which have led to considerable pain and hardship for the populace. Despite these actions, Okupe suggested that further steps are necessary to properly ground these policies and allete the people’s suffering.
He argued that in the future, oil reserves might lose their significance, and Nigeria’s present allocation of less than 2 million barrels per day is insufficient given the nation’s population of over 200 million. Okupe proposed that Nigeria could increase its oil exports to over 3 million barrels per day to enhance revenue and boost the economy.
Okupe also emphasized the need to renegotiate terms with oil majors to shift the revenue distribution ratio in Nigeria’s favor, akin to Saudi Arabia’s model. He suggested refurbishing local refineries and liberalizing licensing for investors interested in building petroleum refineries, especially modular ones.
Additionally, Okupe recommended combating crude oil theft and pipeline vandalization, while also pursuing diplomatic approaches to resolving crises in neighboring countries. He highlighted the potential of building the trans-sahara gas pipeline to Europe, leveraging Nigeria’s substantial gas reserves.
Regarding the fuel subsidy, Okupe suggested reconsidering its complete abolition and allocating excess forex inflow to a supplementary budget. He believed the equalization of the foreign exchange regime would provide substantial revenue for the government and enable increased minimum wages and infrastructure projects.
Furthermore, Okupe advocated for the encouragement of non-oil exports, particularly by small and medium-sized enterprises. He proposed incentivizing exports through grants, and he urged the CBN to promote the use of official platforms for remittances from Nigerians abroad.
Addressing the power sector, Okupe recommended a policy to allow local investors to enter the power generation market without official licensing, potentially boosting the country’s power generation capacity.
Chibabyval (
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