Paul Alaje: "Fuel Subsidy Wasn't Nigeria's Real Problem" | Breakfast Diary
Last Thursday, we had a conversation on Breakfast Diary with Dr. Paul Alaje, Chief Economist and Partner at SPM Professionals, and one thing he said has stayed with me since: fuel subsidy wasn't Nigeria's real problem, it was a symptom of a deeper one. We were reacting to President Tinubu's Independence Day speech, in which the President pointed to delayed subsidy removal and exchange rate unification as some of the difficult decisions that had held Nigeria back for years. Dr. Alaje pushed back on that framing. In his view, the deeper issue is low productivity, and until Nigeria fixes that, cheaper petrol or a stable exchange rate alone won't deliver the prosperity we're being promised. He made a strong case for reliable electricity, good roads and rail infrastructure as the real foundations for growth, and he was just as firm about the need for Nigeria to earn more from outside oil. I've shared the excerpt above. If it gets you thinking the way it got me think...