Sand Mba-Kalu, an economic expert, has reiterated the importance of creating an independent oversight board to monitor the disbursement of savings from the removal of petroleum subsidies.
Mr Mba-Kalu, the executive director of Africa International Trade and Commerce Research, made this statement on Friday in Abuja. He was reacting to President Bola Tinubu’s October 1 national broadcast on the 65th Anniversary of Nigeria’s independence.
“I suggest that the board should include representatives from civil society organisations and the audit office to ensure transparency and accountability in the use of the funds,” he said.
Mr Tinubu had said on October 1 that the removal of the corrupt petroleum subsidy had freed up trillions of Naira for targeted investments in the real economy and social programs for the most vulnerable, as well as all tiers of government.
The president also stated that oil production rebounded to 1.68 million barrels per day from barely one million in May 2023, an increase attributed to improved security, new investments, and better stakeholder management in the Niger Delta.
Mr Mba-Kalu said “trillions freed” from subsidy removal could be at risk of mismanagement or leakages, undermining public trust and development outcomes.
He said that a quarterly result dashboard should also be published, reflecting metrics such as kilometers of roads constructed, hospital beds added, households served, and expanded energy access.
According to him, the removal of subsidies has initiated sharp increases in transport costs, food prices, and general inflation, putting pressure on already vulnerable households.
He stated that the costs of educational materials, utilities, and other essential goods also increased following the removal of the subsidy, exacerbating inequality and hardship, particularly in rural and low-income areas.
“According to a March 2025 Afrobarometer and NOIPolls survey, approximately 93 per cent of Nigerians believe the country is heading in the ‘wrong direction’ and strongly oppose subsidy removal due to the economic difficulties it has caused.
“Multiple studies show that subsidy removal often leads to inflation, poverty, and social unrest unless accompanied by strong transparency and accountability,” he said.
He further said that while the oil and industrial sectors had demonstrated some strength, the non-oil sectors must grow in tandem to support broad-based development.
Mr. Mba-Kalu also stated that in the second quarter of 2025, the non-oil sector grew by 3.64 per cent, accounting for 95.95 per cent of the national GDP.
He, however, noted that the manufacturing sector remained precarious, with nominal growth in Q2 recorded at 4.51 per cent year-on-year, down from 7.65 per cent the previous year.
This, he said, resulted in a decline in its share of GDP.
(NAN)
