Recent Update on Fuel Subsidy in Nigeria

This article is linked to my previous post on Learn a thing or two on Subsidy. In Nigeria, the

government in time past pays subsidy to importers and independent marketers of fuel, importers of kerosene and diesel inclusive. But of recent, the government has stopped paying all subsidies of any sort,i.e subsidy on fuel, kerosene or Diesel. Former President Goodluck Jonathan wanted to stop the payment of fuel subsidy in 2012, but it was stopped by a nationwide riot. 25^th of December, 2015 under Buhari’s administration, fuel subsidy was removed entirely. The Government no longer pays anyone in a quest to reduce the price of fuel, so it means that if you buy fuel from abroad, you are free to sell in Nigeria at your desired price after you must have added all costs and profit. Someone  like Mr. Ali, like I mentioned earlier in my previous post, can now sell at his 140 naira per litre without any hinderance.

You might want to ask, if subsidy has been removed, why has the price of fuel not gone up? It’s simple, if beans is cheap, then Moi-Moi will be cheap, if price cow falls, 'suya and kilishi' will be cheap. Fuel is gotten from crude oil and of recent, the price of crude oil has fallen to about 30 naira from 140 naira as at 2014. So, because the price of crude oil is cheap, the price of fuel is still cheap even with the subsidy removal. If you've got any information to add to this, Comment below.