Subsidy is a government incentive or expenditure directed towards individuals, communities, or nations, as well as enterprises, with the goal of stabilizing the economy.
In the 1970s, the Nigerian government implemented oil subsidy to mitigate the effects of rising world oil prices, and it was formalized by President Olusegun Obasanjo’s military administration in 1977.
Following that, other presidential administrations attempted but failed to withdraw subsidy, but the current administration of President Bola Ahmed Tinubu has done the unfathomable merely 24 hours into his office in 2023.
It is no surprise that President Bola Ahmed Tinubu declared the end of subsidy in Nigeria less than 24 hours after taking office. The price of PMS, popularly known as petrol, has risen. The previous cost of petrol in most states has trippled. The price of petrol has risen from #205 to #600 a liter.
This subsidy removal trend has also resulted in an increase in shipping expenses, which is projected to affect goods in the market soon. Long lines can be witnessed in major cities around the country, including Abuja, Lagos, and Port Harcourt. Some fuel stations have shut down operations, sending locals into a frenzy. This has resulted in a scarcity of fuel and public despair.
YOU MAY ALSO LIKE: Peter Obi Says Nobody Can Force Him To Leave Nigeria
Although the President’s inaugural speech declared an end to subsidy, it did state that it will take effect on July 1st, residents and gasoline companies are taking it to the extreme.
According to the Nigerian National Petroleum Company Ltd, subsidy has consumed around #6.88 trillion throughout the President’s Mohammudu Buhari’s tenure and that the Nigerian economy is no longer capable of supporting the subsidy
For many years, several administrations have worked to eliminate subsidies. The attempted elimination of subsidy by President Goodluck Ebele Jonathan in 2012 created a national uproar. He announced subsidy removal before his departure in January 2012, causing fuel prices to skyrocket from #65 to #150 naira. This provoked outrage from all groups, from civil society to labor unions and even party officials, including Nigeria’s current president, Bola Ahmed Tinubu. It was revoked for the sake of peace.
Citizens and the media are perplexed as to why President Bola Ahmed Tinubu, who was obviously opposed to the notion of subsidy in 2012, is suddenly supporting it, making it a law without giving notice.
What kind of faith would exist if fuel prices, transportation costs, and food prices all skyrocketed across the nation?
YOU MAY ALSO LIKE: Bolanle Raheem’s Killer Policeman Remanded At Ikoyi Correctional Centre
