The Emir of Kano, Muhammadu Sanusi II says the subsidy regime in the Nigerian National Petroleum Corporation has compromised the corporation to the extent that it would take only an angel to run the corporation with honesty.
Sanusi , who was suspended as the Governor of the Central Bank of Nigeria (CBN) by the then President Goodluck Jonathan in 2014 after accusing the NNPC of failing to remit $20bn into the government’s coffers stated this on Sunday during an interview in commemoration of his 4th anniversary on the throne.
While lamenting the lack of transparency at the nation’s apex oil establishment occasioned by the dubious payment of petroleum subsidy, the Emir maintained that no law or regulation had been put in place to change how the corporation was run.
Sanusi said: “I have not seen a change in laws or regulations that will institutionalize any changes. It is far more important to put in place the institutional changes that make it impossible for things to be done.”
While insisting that the payment of subsidy on petroleum products must be scrapped immediately, Sanusi said the problem of NNPC was beyond the change of its leadership.
“It is not about the persons in the NNPC but about whether anyone can make a system operate honestly when there are such huge arbitrage opportunities. We need to import angels for that to happen.
“So, for me these are the issues. It is an economist’s nightmare. Sadly the very reason this subsidy should be scrapped is probably the reason it never will be. For those who profiteer from it, it is just too good to be true.
“The petroleum minister has disclosed that this government has spent N1.4tn already on fuel subsidy and for most of this period, oil price was between low and moderate.
“You can imagine how much we will pay as oil price goes up. Imagine if that money had gone into the power sector or agriculture and education and health.
“So for me this government inherited a bad situation but if it continues with these programmes, the next government will also inherit a bad situation which is a shame,” he added.
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