May 29th, 2023 shook Nigeria as the newly inaugurated President Bola Tinubu declared that there would no longer be a petroleum subsidy regime as the current 2023 budget does not contain it.
He made this statement stated on Monday in his inaugural address at Eagle Square, Abuja. The current 2023 budget has provision for the fuel subsidy till June.
Mr. Tinubu stated that subsidies will be diverted to other things like public infrastructure, education, health care, and jobs.
“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favored the rich more than the poor. The subsidy can no longer justify its ever-increasing costs due to drying resources.
We shall, instead, re-channel the funds into better investment in public infrastructure, education, health care, and jobs that will materially improve the lives of millions,” he said.
The Nigerian government has, for decades, subsidized fuel and fixed retail prices of petroleum products. The payment has, however, threatened the nation’s fiscal position and impacted the government’s ability to fund developmental projects across the nation.
In November 2021, the federal government announced its plan to remove the fuel subsidy and replace it with a monthly N5,000 transport grant for poor Nigerians.
What are your thoughts? Do you think it’s a great decision?