FUEL SUBSIDY REMOVAL, TSA AND THE DWINDLING ECONOMY IN NIGERIA.

I am not surprised that the Federal Government of Nigeria under the leadership of President Mohammad Buhari will consider the removal of fuel subsidy in the 2016 budget. This is because of the fall in the international fuel price which is currently affecting the revenue of the government. The government presently in power under the umbrella of the ALL PROGRESSIVE CONGRESS has rolled out some laudable programs to better the lives of Nigerians. Some of these programs are the welfare programs for the unemployed youths in the country which the government believes they will be able to pay through the Treasury Single Account. The Treasury single account is the account meant or opened for Government generating agencies to handle their recurrent and capital expenditures under close monitoring to avoid corrupt practices in any manner whatsoever. The turn around maintenance of the federal government on our oil refineries is indeed another program which the ruling party intends to achieve. The diversification of our economy from the dwindling oil to agriculture is another laudable program which, if the federal government should follow strictly will affect the change that Nigerians desire.

However, considering a great loss in the value of Nigeria currency, and the fact that the country is in a state of war against Boko Haram, which will definitely involve a lot of money buying arms and some other things to win this war government need to tread softly and be vigilant in the implementation of their economic policies. With utmost seriousness, removing the fuel subsidy completely is not a bad idea, however, its rippling effect may indeed be disastrous. First and foremost, if the fuel subsidy is completely removed the prices of goods and services will increase likewise is the prices of transportation

And all other products. For the poor masses the economic hardship will be so difficult to bear, especially the poor masses who cannot eat three times daily. At the same time, it would have relieved the government of the burden of paying subsidies thereby leaving the markets and the banks to handle themselves and making the petroleum product available to all. A responsible government cannot remove this fuel subsidy at this time for the following reasons. 1) Government needs to test run his agencies , ministries and his new ministers and evaluate their efficiency in tandem with the expectation of Nigerians who voted for change 2) diversification of the economy in agriculture should have started yielding positive results at 75% before removing the fuel subsidy 3) corruption should be reduced in the public service at least 90% before the subsidy is removed. Lastly the oil refinery in Nigeria must be working at full capacity so as to ameliorate the hardship Nigeria will face when it is removed.

It won't be easy for this government to turn things around, however,if the government can sincerely diversify to agriculture and generate money from it through export, removing the subsidy will be easy as the confidence of Nigerians in this government will be guaranteed. The money generated in TSA is in Naira and cannot solve half of Nigeria problems considering the fact that the subsidy is still being paid, salary are owned and many capital projects are left undone with the rising inflation in the country.

Therefore, it is advisable for the government to concentrate their attention to diversifying the economy first to a level of certainty before removing the subsidy. Impatience is not a virtue order is faster than speed.