For many years, the fuel subsidy has been a divisive topic, with some asking for its elimination and others supporting its retention.Concerns regarding the subsidy’s effects on the Nigerian economy have recently come up again.
When the Federal Executive Council convened on April 27,2023, our former president Muhammadu Buhari indicated that the withdrawal of the fuel subsidy will take place in June.
However, President Bola Ahmed Tinubu, GCFR declared the abolition of fuel subsidies during his inaugural speech on May 29, 2023, and it was soon repealed.
The availability of resources for other economic sectors would be one of the main benefits of eliminating the fuel subsidy.
Currently, the government spends a sizable percentage of its budget on fuel subsidies, money that might be better spent on infrastructure improvements, healthcare, and education. President Buhari suggests including a N2.557 trillion additional budget for fuel subsidies in his 2023 budget plan.
Additionally, by eliminating the subsidy, domestic refineries may be encouraged to create more petroleum-based products, lowering Nigeria’s reliance on imported gasoline. In turn, this might strengthen the economy of the nation and give Nigerians jobs.
On the other hand, eliminating the fuel subsidy would raise the cost of petroleum-based goods. This can then cause inflation and lower consumer purchasing power. This might affect the price of goods and services and have a knock-on effect on the entire economy.
In addition, people may feel that the government is uncaring about their needs, which could spark social unrest and riots. Additionally, there is a chance that cutting off the subsidies could increase gasoline smuggling and other criminal activity.
There are some potential benefits to ending the fuel subsidy, but there are also drawbacks.
The government must thoroughly assess the implications of ending the subsidy and take action to counteract any unfavorable outcomes.
An effective way to lessen the effects of eliminating the fuel subsidy is to increase civil officials’ salaries. To guarantee that society is sufficiently prepared for the potential repercussions of this policy shift. Additional measures must be put in place by Nigerians be engaging in various businesses on other sectors of the economy to increase their per capital income.
Kindly begin by calling or sending WhatsApp message to 09057306576 or submit all the information concerning any of the above business plan/proposal for a perfect job directly to a writer through this Get Started link and whatsApp us .Our professional writers will attend to your business request.
