ON THE 29th of May 2923, the newly inaugurated President, Bola Ahmed Tinubu announced the removal of subsidy.
But what really is fuel subsidy and how does its removal affect the average Nigeria and Nigeria as a whole.
Fuel subsidy is a form of government intervention to reduce the cost of fuel. The government provides direct financial support to oil companies that import and market petrol so they can reduce the price of the products to Nigerians , making fuel more affordable.
The removal of fuel subsidy has led to the increase in the price of petrol from N185 to about N500 per litter. This in turn would lead to the in prices of goods and services and reduce the purchasing power of the Naira.
Subsidy was removed because it had become the single most expensive project of the government. The government was spending more on subsidy than on education and healthcare combined. So it seemed like if Nigeria did not take the load off it’s shoulders, we would never move forward.
But what does this mean for the average Nigerian?
We all know that Nigeria has power generation and distribution problems and most small businesses rely on petrol fuels generations to power their business. So this increase in prices of basically everything else.
If there was a time to pay more attention to our finances, it is now.
Ehikioya Nelson Oseghale
FLG PROPERTY LTD