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Subsidy Return Without Anti-Graft Reforms Is Invitation To Looting – Gumi Warns
Subsidy Return Without Anti-Graft Reforms Is Invitation To Looting – Gumi Warns
Gumi warns that restoring petrol subsidy without first tackling corruption could create another channel for diverting public funds.
Cleric backs Tinubu’s economic reforms, saying rising GDP, government revenue and allocations indicate signs of economic recovery.
Says government has failed to provide adequate social protection for Nigerians bearing the brunt of subsidy removal and other economic adjustments.
Calls for free education up to secondary school level, insisting Nigeria has sufficient resources to fund the programme.
November 9, () – Islamic cleric, Sheikh Ahmad Gumi, has warned against restoring the petrol subsidy without first addressing corruption in public institutions, saying such a move could create another opportunity for the diversion of government resources.
Gumi, who also defended President Bola Tinubu’s economic policies, said the administration’s reform direction was largely consistent with recommendations by economists, although the government needed to do more to protect vulnerable Nigerians from the effects of the adjustments.
The cleric made the remarks during an interview with the online platform PAPShow, where he discussed the Tinubu administration’s economic reforms, the removal of petroleum and electricity subsidies, the cost of living and the need for stronger social protection programmes.
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His comments come amid renewed debate over the petrol subsidy following former Vice-President Atiku Abubakar’s promise to restore the policy if elected president.
Reacting to the proposal, Gumi said there was nothing inherently wrong with government subsidies for essential goods and services, noting that several countries operated similar interventions. He, however, questioned Nigeria’s ability to administer such a programme transparently without first addressing endemic corruption.
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“If you reopen the subsidy system without first tackling corruption, you may simply create another opportunity for the diversion of public funds”, he said.
He maintained that restoring the subsidy without addressing the weaknesses in public institutions would amount to wasteful expenditure.
“Similarly, bringing back subsidies without addressing endemic corruption would amount to throwing money into a well”, he added.
Gumi also cautioned that removing subsidies without providing adequate support for poor Nigerians could worsen hardship, insisting that the government must increase social spending to compensate citizens affected by the reforms.
“There is nothing wrong with removing subsidies and increasing social spending to compensate vulnerable citizens. But when you remove subsidies without adequately compensating the poor through social interventions, you create serious hardship”, he stated.
Gumi Defends Tinubu’s Economic Reforms, Says Social Protection Measures Inadequate
On the broader economic policies of the Tinubu administration, the cleric said he found little fault with the direction of the reforms, including the removal of petroleum and electricity subsidies.
Asked whether Tinubu was getting his economic policies wrong, Gumi said: “No. I am not saying the economic measures themselves are wrong. You may find very little fault with the economic direction in principle.”
He noted that the reforms were consistent with recommendations many economists would make and that international institutions, including the International Monetary Fund (IMF), had welcomed some of the measures.
According to him, improvements in key macroeconomic indicators suggest that the economy is recovering, although the benefits are yet to provide sufficient relief to ordinary Nigerians.
“At the macroeconomic level, GDP has increased, government revenue has increased, and allocations have also increased. Virtually all the major indicators suggest that the Nigerian economy is recovering”, he said.
He nevertheless stressed that the improving economic indicators should be accompanied by stronger interventions to address the difficulties confronting households following the removal of subsidies and other policy adjustments.
“The ordinary people are still bearing the consequences of the adjustment. What the government needs to do is establish effective social safety nets. I know it is making efforts in that direction, but the scale of intervention is not commensurate with the level of hardship,” he said.
Gumi acknowledged that the Federal Government had introduced poverty alleviation programmes and other interventions to support vulnerable citizens but said their effectiveness depended on proper implementation, adequate funding and accountability.
“The government has introduced poverty alleviation programmes and other interventions. I am comfortable with them in principle, but the devil is in the implementation. You can have the best policy in the world, but if it is not properly implemented, it will not achieve its objectives”, he noted.
He called for greater scrutiny of funds allocated to social protection programmes, urging the government to establish how much was being spent, the number of beneficiaries reached and whether the interventions were getting to people in remote and underserved communities.
The cleric also called for increased investment in education, arguing that Nigeria had sufficient resources to provide free education from primary to secondary school levels.
“Today, Nigeria has sufficient resources to provide free education not only at the primary level but also up to secondary school. Why should any Nigerian child be denied education when the country’s resources can support such a programme?” he asked.
He described education as the foundation of national development, saying the government should prioritise investment in ordinary citizens and create opportunities for Nigerians to acquire the skills required to contribute meaningfully to the economy.
“Education is the foundation of development and progress in every nation”, he said.
Gumi further observed that many Nigerians with professional qualifications had excelled abroad, arguing that the country needed to create comparable conditions to enable skilled citizens to thrive at home.
On the removal of the petrol subsidy, he described the decision as inevitable, given the economic circumstances in which Nigeria found itself, although he would have preferred the government to establish adequate social safety nets before implementing the policy.
“Removing the subsidy was an inevitable consequence of the circumstances in which Nigeria found itself. However, I would have preferred the government to establish strong social safety nets before removing it”, he said.
The cleric also acknowledged developments in infrastructure and education under the Tinubu administration, citing construction work on the Abuja-Kaduna Road and the establishment of additional federal, state and private universities.
He said these developments were among the areas where progress had been recorded, while reiterating that the government’s social intervention programmes remained inadequate.
“I cannot be unfair to the government. It has introduced some interventions to support vulnerable Nigerians. But has it done enough? No”, he said.
Gumi urged the Federal Government to increase funding for social protection, strengthen accountability in the implementation of poverty alleviation programmes and ensure that the benefits of economic reforms reached Nigerians most affected by the rising cost of living.
He said particular attention should be given to underserved communities with limited access to education, healthcare and other basic social services.
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