Nigeria’s government has announced the removal of a fuel subsidy, meaning that petrol prices are to rise by 66 percent, in a decision that has provoked mixed responses the cost of petrol will rise from 865 naira ($043) to 145 naira ($073) per litre after the subsidy—which costs the nigerian government $27 million per day, according to the bbc —was removed.
In 2011 alone, nigeria’s fuel subsidy cost the country an estimated $8 billion and the price tag for 2012 was expected to be even greater this does not even take into account the country’s losses due to market distortions as a result of the subsidy. A subsidy is an assistance paid to a business or economic sector most subsidies are made by the government to producers or distributed as subventions in an industry to prevent the decline of that industry (‘subsidy’, 2012.
Impact of subsidy removal on nigeria economy essay open document below is an essay on impact of subsidy removal on nigeria economy from anti essays, your source for research papers, essays, and term paper examples august 2010 soundview fuel subsidy removal impact on international tourism in.
This paper seeks to examine the removal of fuel subsidy in the nigerian petroleum industry recently crude oil, since its discovery in commercial quantity in 1956, has been the main economic stay of my country, nigeria.
On the 1st of january 2012, the government of the federal republic of nigeria, through the petroleum products pricing regulatory agency (pppra), announced the withdrawal of a petroleum subsidy on premium motor spirit (pms), more than doubling the price of fuel from n65 ($042) per litre to n141 ($092. Effects of subsidy removal in a country of power instability the removal of fuel subsidy has triggered double in the price of fuel 1 increased price of fuel and other petroleum product 2 increase in transport fares 3 increased price of food products.