Removal of Fuel Subsidy In Nigeria
Posted: October 30th, 2023, 8:52 pm
The Nigerian government introduced an oil subsidy to cushion the effect of rising global oil prices in the 1970s. The Olusegun Obasanjo military regime formalised the subsidy in 1977 when it promulgated the Price Control Act which regulated prices of items including fuel.
In addition, Fuel subsidy in Nigeria is one of many consumption subsidy programmes of the government. It attempts to lower the fuel cost by providing direct financial support to oil firms, thereby lowering the fuel price for Nigerians.
The subsidy, introduced in the 1970s, had kept fuel prices cheap for decades but had become increasingly expensive, costing the government $10bn last year. “Subsidy” became a national buzzword in 2012.
Attempts to remove petrol subsidy by past administrations triggered protests and stiff resistance. After swearing-in on May 29, President Bola Tinubu removed fuel subsidy in Nigeria. The nation's refineries are non-functional, thereby necessitating the continuous importation of refined petroleum.
According to the speech he gave at a national conference in Abuja, he said, "Without the subsidy, Nigeria could conserve more than 15 million tonnes of CO2 each year. “The fuel subsidy is gone,” said Nigeria President Bola Tinubu, on 29 May 2023.
Fuel subsidy is an expensive budget to Nigeria government. In my own view, removal of fuel subsidy will widen the eyes of many Nigerians because since the oil boom in 1960, many Nigerians left agriculture after noticing the lucrative of the oil business.
What is your suggestion???
In addition, Fuel subsidy in Nigeria is one of many consumption subsidy programmes of the government. It attempts to lower the fuel cost by providing direct financial support to oil firms, thereby lowering the fuel price for Nigerians.
The subsidy, introduced in the 1970s, had kept fuel prices cheap for decades but had become increasingly expensive, costing the government $10bn last year. “Subsidy” became a national buzzword in 2012.
Attempts to remove petrol subsidy by past administrations triggered protests and stiff resistance. After swearing-in on May 29, President Bola Tinubu removed fuel subsidy in Nigeria. The nation's refineries are non-functional, thereby necessitating the continuous importation of refined petroleum.
According to the speech he gave at a national conference in Abuja, he said, "Without the subsidy, Nigeria could conserve more than 15 million tonnes of CO2 each year. “The fuel subsidy is gone,” said Nigeria President Bola Tinubu, on 29 May 2023.
Fuel subsidy is an expensive budget to Nigeria government. In my own view, removal of fuel subsidy will widen the eyes of many Nigerians because since the oil boom in 1960, many Nigerians left agriculture after noticing the lucrative of the oil business.
What is your suggestion???
