The International Monetary Fund (IMF) Wednesday reiterated the
need for Nigeria and other countries that still retain the policy
of subsiding fossil fuel to put an end to the policy.
Precisely, the IMF said eliminating the policy which it pointed
out, “typically benefit the rich more than the poor, could gain up
to four per cent of global Gross Domestic Product (GDP).
Although the multilateral institution which stated this in a
blog post titled: “Fuel for Thought: Ditch the Subsidies,” did not
name any country, a recent World Bank report had shown that Nigeria
spent N731 billion to subsidise petrol consumption last year. This
is also the situation in some low income and developing
countries.
But the IMF in the blog post pointed out that, “
Pensions, education, healthcare, better infrastructure, technology,
and climate change: fiscal policymakers have their work cut out for
them on many fronts. Whether you live in a rapidly aging advanced
economy, or a low-income or emerging market economy with a young,
booming population, all these issues matter for you.
“As the Fiscal Monitor in April 2019 shows, government policies
on taxes and spending have to adapt and should shift to
growth-enhancing investment. This means, for example, more money to
build classrooms, hospitals and roads, while cutting wasteful
spending, such as inefficient energy subsidies.
“Removing fossil fuel subsidies, which typically benefit the
rich more than the poor, could gain up to 4 percent of global GDP
in additional resources over the medium term to invest in people,
growth, and help protect the most vulnerable.
“We define the subsidies—which amount to 6.5 per cent of GDP
globally—broadly. The IMF’s calculations include both the
government funding to artificially reduce the price of energy below
cost (0.4 percent of global GDP) and the under taxation of fuel
consumption (6.1 percent of global GDP), because energy consumption
contributes to global warming, local pollution, increased traffic
congestion and more accidents.”
It noted that monies spent on other priorities could help raise
long-term economic growth, which it described as key ingredient to
reduce the burden of high public debt.
“It can also spread economic benefits more widely within and
across countries and help restore the public trust in institutions
necessary for economic stability,” it added.
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Sheikh zakzaky in plane toIndia
Following lack of breakthrough in the impasse that ensued in the
treatment in New Delhi of Sheikh Ibraheem Zakzaky, it is now
confirmed that the Sheikh is on his way back to Abuja,
Nigeria.PRNigeria[1] gathered that Sheikh
Zakzaky and his entourage departed New Delhi in a commercial
airline at 5pm Nigerian time today.In a video message sent through
his office, the Sheikh said it was decided that they would be flown
back to Nigeria.
He prayed that may that be the best option in the
circumstances.
A top member of of Islamic Human Right Commission (IHRC) which
negoatiated the medical treatment in India said that the Nigerian
government’s interference and scuttling of the whole process rather
than supervision as ordered by the court is the direct cause of the
impasse.