THE IMPACT OF PETROL SUBSIDY REMOVAL IN NIGERIA: CHALLENGES AND PROSPECTS FOR RELIEF
Video: Sharing of Palliatives at Madara Ward of FCE Kontagora Nige State During his inaugural speech on May 29, 2023, Nigeria’s newly elected President Bola Ahmed Tinubu announced the removal of the petrol subsidy. He explained that the subsidy had already been quietly removed by former President Muhammadu Buhari early in his second term, and as such, the 2023 budget made no provision for it. Nigerians appeared largely indifferent to this covert removal, focusing instead on price stability and product availability. The previous administration had repeatedly explained that the high cost of subsidizing petrol was a major cause of frequent fuel shortages in the country. They accused a few wealthy importers—who held licenses to bring in petrol—of benefiting disproportionately from the subsidy, while the poor, the intended beneficiaries, saw little advantage. The government alleged that these so-called “subsidy thieves” inflated importation costs and diverted petrol to neighbori...