Kalu Idika Kalu Advocates for Transparent Subsidy Management, Cites Global Practices
In a recent interview with Channels TV, former Nigerian Minister of Finance, Kalu Idika Kalu, emphasized the importance of subsidies in advanced economies while calling for transparency in their administration to benefit citizens.
Kalu explained that countries like Russia, the United States, France, and Argentina continue to provide subsidies on certain products for their populations. Reflecting on his observations from the 1980s, he noted that while subsidies themselves are not inherently flawed, they can become inefficient if not properly managed.
“I highlighted these issues decades ago,” Kalu remarked. “The problem arises when subsidies are subject to misuse, excessive application, or become unsustainable due to their budgetary impact. But fundamentally, subsidies are not a bad thing, as we see in countries like Russia, America, France, and others.”
He stressed the need for clear and transparent policies to ensure subsidies serve their intended purpose: to reach the citizens who need them. According to Kalu, the success or failure of such policies rests largely on economic leadership, rather than the policies themselves.
“Effective policies require serious commitment,” he said, adding that economic mismanagement should be blamed on those overseeing it, not the frameworks in place. “It’s not enough to say we don’t know where we’re headed.”
Kalu further urged the government to prioritize productive spending to foster economic growth, citing agricultural support as an example. “When substantial funds are allocated to areas like farming and yield tangible results, that’s where spending should be focused,” he concluded.
