Following Fuel Subsidy in Nigeria, here is the Latest Petrol Scarcity News and Subsidy Removal update For 8th June 2023.
Fuel subsidy: Edo increases minimum wage, approves three days work week
The Edo State Government empathizes with its citizens regarding the removal of fuel subsidies, leading to increased prices of goods and services. Governor Godwin Obaseki announced that civil and public servants will now work three days a week instead of five due to the higher transportation costs. The government has raised the minimum wage to N40,000 and plans to further increase it if more funds are allocated. They are also implementing measures such as virtual classes and improved power supply to alleviate the burden on the people. The government urges citizens to remain calm and lawful in their daily activities.
VIDEO: President Tinubu meets with Oil marketers on fuel subsidy removal
See the link to video here :
https://twitter.com/i/status/1666503177082925056
Governors back Tinubu on fuel subsidy removal
State governors expressed their strong support for President Bola Tinubu’s decision to end fuel subsidy payments and praised his leadership and statesmanship. During a meeting with members of the Nigerian Governors’ Forum, the governors commended the president for tackling the issue of fuel subsidies and pledged to work with him to alleviate the short-term impact of the decision. President Tinubu emphasized the need for collaboration among political leaders to address poverty and prioritize the well-being of the people. He stressed the importance of good governance, unity, and the strengthening of institutions. The president also highlighted the need to tackle security challenges and improve the education sector to combat poverty. The governors assured their support and commitment to working with the federal government to address these issues through the National Economic Council.
How I Would Have Removed Fuel Subsidy — Peter Obi
Peter Obi, the presidential candidate of the Labour Party, broke his silence on President Bola Tinubu’s removal of fuel subsidy. Obi expressed his support for subsidy removal but criticized the forceful manner in which it was implemented. He suggested implementing various relieving policies to cushion the impact. Obi compared the removal to a tooth extraction, advocating for a more gentle approach. He mentioned that during Jonathan’s administration, he consistently supported subsidy removal as he saw it as organized crime. Obi emphasized the importance of providing statistical and empirical evidence to the people and using the savings to benefit the suffering masses. This position aligns with Atiku Abubakar’s, the PDP presidential candidate, who also criticized the manner in which subsidy was removed. Since the removal, fuel prices have skyrocketed, causing long queues at petrol stations and a significant increase in transportation costs. The Organised Labour had planned a nationwide strike but was restrained by a court order.
Fuel marketers declare support for subsidy removal
The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) expressed its support for the federal government’s removal of fuel subsidies. The association’s chairperson, Winifred Akpani, announced their endorsement during a meeting with President Bola Tinubu. DAPPMAN also pledged to contribute to the government’s palliative measures by providing 50 to 100 mass transit buses that run on Compressed Natural Gas. Akpani emphasized that removing subsidies is not about making fuel unaffordable for Nigerians but about addressing the real issues related to petroleum product subsidies. Governor Dapo Abiodun of Ogun State, who led the DAPPMAN delegation, commended the subsidy removal as a bold step towards positive economic growth. He stated that the elimination of subsidies would free up funds for economic development and open opportunities for investments in other sectors. The National Economic Council is expected to propose interventions to mitigate the impact of subsidy removal on Nigerians.
What is Fuel Subsidy in Nigeria
In Nigeria, fuel subsidy refers to the government’s practice of subsidizing the price of petroleum products, particularly gasoline (known as petrol) and kerosene, for the Nigerian population. The Nigerian government has historically maintained a fuel subsidy program to make fuel more affordable for its citizens.
The subsidy is implemented by selling petroleum products at a lower price than the actual market price. The difference between the market price and the subsidized price is covered by the government using public funds. The intention behind this subsidy is to alleviate the financial burden on consumers and ensure the availability of affordable fuel for transportation, cooking, and other essential purposes.
However, the fuel subsidy program in Nigeria has faced significant challenges. The subsidies have led to large fiscal burdens on the government and have been subject to corruption, mismanagement, and inefficiencies. The system has been prone to abuse, with reports of smuggling, diversion of subsidized fuel to neighboring countries, and fraud.
Due to these challenges, the Nigerian government has made efforts to reform and reduce fuel subsidies in recent years. In 2020, the government fully deregulated the downstream sector of the petroleum industry, effectively removing the fuel subsidy. This move allowed for market forces to determine the price of petroleum products, which fluctuates with global oil prices and exchange rates.
The deregulation of fuel prices in Nigeria has been a controversial topic, as it has resulted in increased fuel prices for consumers. However, proponents argue that it allows for more efficient allocation of resources, reduces government expenditure on subsidies, and encourages investment in the domestic refining industry.
