Economist Advocates Independent Oversight Board For Subsidy Savings Monitoring

An economist, Dr Sand Mba-Kalu, has emphasised the value of creating an autarkic oversight committee to show the disbursement of savings from the petroleum subsidy removal.

Mba-Kalu, who is the enforcement director, Africa International Trade and Commerce Research (AITCR), made this known connected Friday successful Abuja, successful an interrogation with the News Agency of Nigeria

He was reacting to President Bola Tinubu’s Oct. 1 nationalist broadcast connected the 65th Independence Anniversary of Nigeria.

“I suggest that the committee should see representatives from Civil Society Organisations (CSOs) and the audit bureau to guarantee transparency and accountability successful the usage of the funds,” helium said.

Tinubu had connected Oct. 1 said that the removal of the corrupt petroleum subsidy had freed up trillions of Naira for targeted investments successful the existent system and societal programmes for the astir vulnerable, and each tiers of government.

The president besides said that lipid accumulation rebounded to 1.68 cardinal barrels per time from hardly 1 cardinal successful May 2023, an summation which occurred owed to improved security, caller investments and amended stakeholder absorption successful the Niger Delta.

Reacting to the assertion, Mba-Kalu said “trillions freed” from subsidy removal could beryllium astatine hazard of mismanagement oregon leakages, undermining nationalist spot and improvement outcomes.

“Multiple studies caution that subsidy removal often leads to inflation, poverty, and societal unrest unless accompanied by beardown transparency and accountability.

“The rationale for subsidy removal is to reallocate resources effectively.

“To support nationalist trust, the authorities should people an expenditure ledger detailing the “savings from subsidy removal” and should beryllium linked to circumstantial enactment items—such arsenic health, societal support, infrastructure, authorities funding, and education,” helium said.

He said that a quarterly effect dashboard should besides beryllium published, reflecting metrics specified arsenic kilometers of roads constructed, infirmary beds added, households served and expanded vigor access.

According to him, the removal of subsidies has initiated crisp increases successful transport costs, nutrient prices, and wide inflation, putting unit connected already susceptible households.

He said that the costs of acquisition materials, utilities and different indispensable goods besides increased, pursuing the subsidy removal, worsening inequality and hardship, peculiarly successful agrarian and low-income areas.

“According to a March 2025 Afrobarometer and NOIPolls survey, astir 93 per cent of Nigerians judge the state is heading successful the “wrong direction” and powerfully reason subsidy removal owed to the economical difficulties it has caused.

“Multiple studies amusement that subsidy removal often leads to inflation, poorness and societal unrest unless accompanied by beardown transparency and accountability,” helium said.

He further said that portion the lipid and concern sectors had demonstrated immoderate strength, the non-oil sectors indispensable turn successful tandem, to enactment broad-based development.

Mba-Kalu besides said that successful the 2nd 4th (Q2) of 2025, the non-oil assemblage grew by 3.64 per cent, contributing astir 95.95 per cent of nationalist Gross Domestic Product (GDP).

He, however, said that the manufacturing assemblage remained precarious, with nominal maturation successful Q2 grounds astatine 4.51 per cent year-on-year, which was down from 7.65 per cent the erstwhile year.

This, helium said, resulted successful a diminution successful its stock of GDP.

“Sectors specified arsenic agriculture, trade, ICT and services request to beryllium accelerated to make jobs, thrust exports and diversify risk,’’ helium said.

To cushion the daze to households, helium said the authorities should standard up conditional currency transfers, transport vouchers and targeted subsidies for captious goods similar fertilisers, powerfulness and broadband, alternatively than broad substance subsidies.

“Efforts should peculiarly absorption connected women, agrarian households, informal workers, and low-income communities.

“Transitional measures for food, medicine and energy tariffs are indispensable to forestall a regression into utmost poverty,” helium added. (NAN)