Provision Of Subsidy On Essential Items, Good Idea – Kalu Idika Kalu
Former Minister of Finance, Dr. Kalu Idika Kalu has stressed that provision of subsidies on essential items by government is not bad.
He particularly said that arguments against subsidies will not gain ground if proper management is ensured with targeted people being reached.
The former minister who is a renowned Economist, spoke against the backdrop of the of the severe economic hardship being faced by Nigerians as a result of the removal of subsidy on petroleum products, stressed that the management of subsidies and similar policies goes to the question of economic leadership.
Dr. Idika Kalu, who was Minister of Finance during the administrations of former military President, General Ibrahim Babangida from 1985 to 1986 and also served between 1993 and 1994, noted that some countries such as the United States, Russia, and Argentina have subsidies in place to help the people.
According to him; “You see, subsidies were not liable to abuse, overuse, and being non-cost-effective by the sheer quantum of how it impacts the budget and the efficiency of the resource allocation”.
Idika Kalu also said that nothing is inherently negative about the introduction of subsidies as they are still happening in Russia, America, Argentina, France, and so on.
He therefore challenged the managers of the nation’s economy to work on the best model that will deliver development to the citizens, stressing that the managers of the economy must be flexible to ensure the country is well-positioned to grow.
