OPINION BY SEUN AWOGBENLE: Tinubu and the fuel subsidy conundrum | TheCable fuelsubsidy
Let us face it; by every measurement, President Tinubu is inheriting a fragile economy with high inflation rate, mounting debts, low government revenue and inadequate economic growth. This is in addition to generalized insecurity ravaging almost all parts of the country and worsening human development indices such as unemployment, poverty, out-of-school children, power failure, a crippling health sector, and an educational system that is almost in a state of disrepair.
Prior to his inauguration, many Nigerians were aware that an end to the fuel subsidy regime was only a matter of time. It was clear that retaining the inefficient subsidy no longer made economic sense, especially at a time when other critical sectors of the economy continue to suffer. In 2022 alone, Nigeria spent N4.39 trillion, or $9.7 billion, on petrol subsidies alone; this translates to an estimated 70% of the country’s total earnings from oil in the same year.
As expected, the increase in the price of fuel has immediately led to a proportionate rise in the cost of living, especially with the increase in the cost of food items and transportation. Despite the temporal hardship, I find it admirable that the majority of Nigerians have remained resilient through it all; most people believe that the subsidy removal is a necessary sacrifice we must make for future progress.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
NBS: Nigeria recorded N927.2bn trade surplus in Q1 2023 | TheCableThe National Bureau of Statistics (NBS) says Nigeria recorded a N927.16 billion trade surplus between January and March of 2023.
Read more »
NPC: We'll register 12.72m children in 2023 to attain 100% birth registration | TheCableBala Musa, the UNICEF focal person, said that plans were ongoing to develop a mechanism that will enable a simplified, accessible and automated system that would better facilitate birth registration and certification of children.
Read more »
JUST IN: Tinubu holds first meeting with all state governors | TheCablePresident Bola Tinubu is currently meeting with governors at the presidential villa, Abuja. The sit-down is the president’s first engagement with all the governors of the 36 states of the
Read more »
JUST IN: Tinubu swears in Akume as SGF | TheCablePresident Bola Tinubu has sworn in George Akume as the secretary to the government of the federation (SGF). The swearing in ceremony took place at about 11:16 am on Wednesday
Read more »
Tinubu holds first meeting with all state governors | TheCablePresident Bola Tinubu is currently meeting with the state governors at the presidential villa, Abuja. The sit-down is the president’s first engagement with all the governors of the 36 states
Read more »