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In the advice on subsidy deductions forwarded to the Ministry of Finance, NNPC always state that ‘in line with presidential directives, the ministry should authorize the Accountant General of the Federation to source for the approved subsidy amount and transfer same to the Federation Account for onward distribution by FAAC’.
Who subsidizes the consumers will depend upon the incidence of taxation. But men in their role of taxpayers will be subsidizing themselves in their role of consumers. It becomes a little difficult to trace in this maze precisely who is subsidizing whom. What is forgotten is that subsidies are paid for by someone, and that no method has been discovered by which the community gets something for nothing.
All these programmes are already in place; but there is need to follow up on their implementation, which I am going to ensure because I have the expertise in good governance and social development, If we leave everything to the government, we will not achieve the country’s targets. There is need for everyone to get on board, to work together to realize the country’s targets.
An essential commitment, which virtually all observers have emphasized, is not to subsidize enterprises that are making losses. While the standard remedy for this is "privatization," it should be recognized that this is neither necessary nor sufficient for imposing hard budget constraints. Governments in many countries have subsidized private producers (e.g., of steel), and governments in some countries have imposed hard budget constraints on government enterprises.
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