What are the reasons for fuel subsidy removal in Nigeria?

Dramatic change in the price for the fuel in the view of the fuel subsidy removal in Nigeria has drawn attention of Nigerians and even made them angry. Why is this removal needed now? Let’s find the answer out together.

nigerian fuel

What is the main reason for doing it right now? Well, there is an important reason, and even just one. There at least five of them, and they are all equally important. So where do we start to answer the question?

First of all, you should know that now in the view of the subsidy removal the price for the petrol will raise dramatically. As you know, it used to be N86.50 thanks to the subsidies. However, now without them, the price will rise up to N145. Quite a significant change, don’t you think?

Nigerian petrol station

This hike is considered to be the most dramatic in the whole history of Nigeria. People irritated with such a change started striking and addressing the government in order for them to stop it. Nevertheless, this was not a last-moment decision, and it was talked about for a long time; thus, the decision is not likely to be cancelled.

What are the main reasons for Nigerians to support the change? Let’s start with the fact that removing the subsidy the government would have now more time to deal with other problems rather than discuss and control this area.

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Petrol lack NIgeria

After consulting the main stakeholders of this field, they came to a conclusion that will allow the petrol station selling fuel at N145 or higher but not less. People have been striking for several days after the announcement of the changes coming into action in May.

However, not all the states joined it in the view of the second benefit from the subsidy removal. Under such conditions, petrol is more likely to be available everywhere and at any time. This has been a problem in smaller cities of different states, and knowing that it can prevent deficiency, people decided to accept and support the removal.

The other reason to support this decision is that it can bring positive influence into the economy by preventing creating of artificial prices. This move will also let the other players into the field, not just the biggest ones or the most corrupt ones. In other words this subsidy removal aims to trigger the competition that was not likely to happen under the former regulations.

fuel subsidy removal

We all know that there is no good in lining up in front of the petrol stations. As the government explains, they believe that such changes can reduce the number and length of the lines on the stations.

Finally, as you see there really are good points in accepting and supporting new regulations offered by the government. As the authorities commented on the strikes, they suggest that strikes come as a result of lack of political education and knowledge of the current state of country’s economy.

Nigerian fuel subsidy removal

Nevertheless, it seems that the government did not think it was important to explain and go into details on reasons that pushed them to such a decision. A proper vision presented to people could have prevented many misunderstanding with all of their consequences and the mistrust people can feel about authorities that make decisions without paying attention to the will of the people.

We will see the results of subsidy removal very soon both in this field and in other ones, as the government will now have more time for other sectors as well (at least they say so). So let’s hope for the better!

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