Human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, has said that the removal of petrol subsidies was driven by pressure from the World Bank and the International Monetary Fund (IMF).
Speaking on Sunday Politics, a Channels Television programme, Falana noted that no country has completely eliminated 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.”
He argued that the decision to end the petrol subsidy in Nigeria was not a domestic initiative but rather a policy 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 had announced the end of the petrol subsidy on May 29, 2023, during his inauguration. Shortly after, the Central Bank of Nigeria (CBN) declared the unification of all segments of the foreign exchange market.
These measures, however, have fueled record inflation, worsening living conditions for many Nigerians.
Addressing the proposed five percent fuel surcharge, Falana urged the government not to intensify economic hardship. He stressed that the federal government should first remit funds owed to the Federal Roads Maintenance Agency (FERMA) instead of introducing fresh taxes.
He cited section 14 of the FERMA Act 2007, which provides for 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.
Falana added that between 2007 and 2011, FERMA confirmed that no funds were remitted despite deductions from petrol sales by regulators.
“We asked FERMA in 2011 how much was collected; they replied that the government never gave them a kobo,” Falana said.
He warned that imposing a new surcharge could lead to multiple taxation and further strain 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 lawyer also called for an end to dollarisation, describing it as a criminal offence to reject the naira, Nigeria’s legal tender.