The coming subsidy removal: Booby traps and escape routes, By 'Tope Fasua

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The coming subsidy removal: Booby traps and escape routes, By 'Tope Fasua
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Every presidential candidate in the recently concluded presidential election – save probably for Omoyele Sowore – promised to remove Nigeria’s overhanging fuel subsidy, which takes anything between N4 trillion to N6 trillion of the country’s lean resources every year. We all know that the figures don’t add up, and the challenge is how to ensure […]

Every presidential candidate in the recently concluded presidential election – save probably for Omoyele Sowore – promised to remove Nigeria’s overhanging fuel subsidy, which takes anything between N4 trillion to N6 trillion of the country’s lean resources every year.

So, are we prepared for a runaway petrol price at say N900? How will government manage the fallouts? How do we prevent inflation from going haywire? Should government take a more activist stand in calling sector players to try and tame price increases? What does government do when workers are no longer able to transport themselves to work? This kind of policy, when it is done elsewhere, is designed to discourage people from buying cars or even using their cars if they have one.

Oil taxes, which earned N4.1 trillion out of the N10.1 trillion collected by FIRS in 2022 should be maintained as is – and should grow substantially in 2023 given the recovery of lost grounds in that sector.

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