By Dike Onwuamaeze
The Nigeria Employers’ Consultative Association (NECA) has called on the federal government to totally eradicate the subsidy regime in whatever form on petroleum products as well as the economy in general.
NECA made the call as it commended the federal government on the recent reduction in the price petrol, which it described as a welcomed development.
Speaking in Abuja yesterday, the Director-General of NECA, Dr. Timothy Olawale, said: “Government should address the issue of subsidy and ensure its total eradication. Energy consumption subsidy is any policy by the government aimed at reducing the price of energy consumed by citizens relative to what the price would have been in the absence of such policy.
“The regulated price arguably will reduce the consumer price index (CPI) and make it easy to regulate the level of inflation. But subsidy often leads to increased demand for petrol due to over use and waste arising from reduced price of the product, creating unnecessary shortage of supply.”
Olawale advised the government “to allow the international price of crude oil to determine the pric