Femi Falana, human rights lawyer and senior advocate of Nigeria (SAN), says the World Bank and the International Monetary Fund (IMF) pushed the federal government to remove the petrol subsidies.
Speaking on Channels TV, Falana said no country in the world has completely scrapped subsidies.
“There’s no way you can remove subsidies completely; no country in the entire world has abolished subsidies completely,” he said.
“Even leading Western countries like the United States, the United Kingdom, France and others subsidise electricity, agriculture and many aspects of people’s lives.”
Falana said the removal of the petrol subsidy in Nigeria was not a domestic policy choice but a condition imposed by international financial institutions.
“As a matter of fact, if I must say this, it was the World Bank and the International Monetary Fund (IMF) that insisted that the government must remove all subsidies,” he added.
President Bola Tinubu announced the end of the petrol subsidy on 29 May 2023 during his inauguration.
The Central Bank of Nigeria (CBN) also announced the unification of all segments of the foreign exchange market.
The policies have led to record inflation, worsening the standard of living for many Nigerians.
Speaking on the planned five perfect fuel surcharge, Falana urged the government to avoid worsening economic hardship.
He said the government should first remit funds owed to the Federal Roads Maintenance Agency (FERMA), while insisting that Nigerians should not be asked to bear fresh taxes.
The human rights lawyer added that section 14 of the FERMA Act 2007 established a five percent user charge on fuel sales.
“The provision was clear: 40 percent for federal roads, 60 percent for state roads; sadly, the government never implemented it,” he said.
He also said that, between 2007 and 2011, FERMA confirmed that no funds were remitted despite deductions from petrol prices at source by regulators.
“We asked FERMA in 2011 how much was collected; they replied that the government never gave them a kobo,” Falana said.
He said that introducing a fresh surcharge could amount to multiple taxation, burdening already strained consumers.
“The money was deducted but not remitted; this new tax should first address those missing collections,” Falana added.
“By 2022, even the Senate confirmed that over one trillion naira was owed to FERMA.
“Before introducing new levies, the government must tell Nigerians what happened to the earlier deductions.”
The senior lawyer also called for an end to dollarisation, stressing that it is a criminal offence to reject the Nigerian currency, the naira.
