Boma Achenimie 
Former Minister of Finance, Kalu Idika Kalu, has argued that there is nothing inherently wrong with the Federal Government subsidizing certain products for its citizens, provided it is managed transparently.
Kalu who made this remark while speaking on Channels TV highlighted that even advanced economies like the United States (US), Russia, and France still provide subsidies to support their citizens.
New Telegraph recalls that President Bola Tinubu on assumption to office on May 29, 2023 announced the removal of petrol subsidy.
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The removal led to widespread economic hardship, which continued to affect and impact citizens standards of living.
While reports and politicians, such as the former Governor of Kaduna State, Nasir El-Rufai, argued that the Federal Government still pays fuel subsidy; the government, through the Minister of Finance, Wale Edun, has consistently dismissed the reports and claims.
Kalu emphasized that subsidies are not inherently problematic but need to be efficiently managed to avoid budgetary strain and misallocation of resources.
“Subsidies were not liable to abuse, overuse, and being non-cost-effective by the sheer quantum of how it impacts the budget. But as I also said, nothing is inherently negative about the introduction of subsidies,” he explained.
He further stressed the need for policies to be implemented with transparency, ensuring that the benefits reach the intended recipients.
Kalu noted that the success or failure of economic policies depends on leadership, not the policies themselves, urging that government spending be directed towards productive areas like agriculture to stimulate economic growth.
“If you are spending a lot on farm support and so on, and you are getting commensurate results for the spending, that is what you should put into context,” Kalu concluded.
