By Olusegun Obisanya
The Institute of Chartered Accountants of Nigeria (ICAN) has commended the Federal Government for the bold step taken to plug revenue leakages by removing the lingering PMS subsidy. The body has also recommended eleven-point action plans to the government.
The Institute, however, has called on government to put in place strategic action plans to lessen consequential burdens such policy would inflict on the populace.
In a statement, the Registrar/Chief Executive, ICAN, Prof. Ahmed Kumshe noted that the professional body stands ready to offer its support to the government in the effort to move the country forward.
Kumshe said, “The recent removal of subsidy on PMS has been greeted with mixed reactions. We commend the bold steps taken by the new government to address market distortions and block revenue leakages.
“We call for action plans to reduce the burden of such economic policy decisions and limit the burden on the populace, especially small businesses and vulnerable households.
The action, as recommended by the institute includes an effective stakeholder engagement with all relevant stakeholders for the introduction and implementation of policy. The body recommended credible palliatives to cushion the impact on the most vulnerable population beyond the civil service, adding that palliatives should be implemented at both the federal and state levels.
ICAN Registrar stated further, “Notwithstanding the full deregulation, there is still the need for full transparency and accountability of all activities within the oil and gas sector. Political office holders should lead by example in making the necessary sacrifice to restore the country back to the path of fiscal buoyancy.”
According to the statement, the body said savings from the subsidy removal should be applied that will optimise the benefits to the people in view of their sacrifices.
As part of its recommendations, ICAN urged government to attract investment into the oil industry by introducing “other policies to complement the fuel removal to make the sector competitive and attractive.”
