“Fuel Subsidy is Gone”!!!, announced, President Tinubu on his swearing in and oath taking day.
The Federal Government has reiterated its support for the decision to eliminate fuel subsidies, despite the subsequent rise in living costs and inflation. Nigeria, known for its practice of exchanging crude for gasoline to subsidize domestic fuel prices, has seen this approach strain its revenue, foreign exchange reserves, and increase its debt. President Bola Tinubu, recognizing the unsustainable nature of this system, ceased the subsidy regime upon taking office in May, marking a significant shift for Nigeria, Africa’s largest economy and most populous nation. This resulted in fuel prices jumping from N190 to over N600 per liter, significantly impacting the cost of living.
Minister of Information and National Orientation Mohammed Malagi, on Thursday, maintained that discontinuing the subsidy is in the nation’s best interest. He highlighted the long-term economic challenges Nigeria faces, emphasizing the need to rebuild the economy’s foundation for sustainable growth. Malagi acknowledged the immediate hardships caused by the subsidy removal but argued that continuing the subsidy would have hindered essential development by constraining the resources needed for meaningful progress.
The government has contended that the subsidy’s benefits were disproportionately enjoyed by a select few, rather than the general populace. Malagi also mentioned that security agencies are actively investigating those who have exploited the subsidy system, often referred to as “subsidy thieves,” ensuring that those responsible are held accountable.
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