Effect Of Removal Of Fuel Subsidy In Nigeria

Effects Of Removal Of Fuel Subsidy In Nigeria

Fuel Subsidy is the money paid by the government of a country to reduce the price of fuel of a particular country. The removal of fuel subsidy in Nigeria is causing a lot and it is really affecting a lot of things, even though the country's economy.

The removal of fuel subsidy in Nigeria has caused some bad effects like:

1. The removal of fuel subsidy has caused hike in the price of commodities in the country, since the removal of fuel subsidy, there have been increase in the price of commodities in the market. i.e increase in the cost of production which can result to increase in the price of commodities, also increase in the cost of transportation of commodities (from producers to buyers), which will result in the increase in the price of commodities in the market.

2. The Removal Of Fuel Subsidy will promote embezzlement among the government. After the removal of fuel subsidy, the Nigerian government said they were able to allocate four hundred billion naira in just four weeks. My question is, this 400 billion naira, where would it go to?, Are they going to invest it into other sectors?, Or use it to empower people, create job opportunities, create more infrastructure?. The answer to this question still remains unknown as no one know where the money allocated would go to. So the removal of fuel subsidy can also promote embezzlement among the government, because they are no longer paying for the subsidy, and any money allocated cannot be sure of where it is going to.

3. The Removal Of Fuel Subsidy In Nigeria will also cause increase in the rate of crime in the country. The Country's economy is becoming very hard and everyone will need a means of surviving. Most people might not hesitate to take the bad path of involving in crimes just to survive and cater for their families.

4. The Removal Of Fuel Subsidy will continue to affect the Country's economy. Before the removal of fuel subsidy in Nigeria. Nigeria has been facing her bad economy state, not to talk about now that the subsidy has been removed and there is inflation in the price of goods. So the removal of the fuel subsidy will continue to affect the country's economy and put it on a very bad state, because even to feed is becoming a very mighty thing in the country.

5. The Removal Of Fuel Subsidy has also caused the increase in the prices of fuel in the country. The Cost Of Fuel in Nigeria is a very high level cost, getting a fuel of one litre now in Nigeria is ranging from N600 - N700 per litre. So we can see what the removal of fuel subsidy has caused there. The price of fuel is becoming very high and even not stable in price, where you can get it above that price in some places.

6. The Removal Of Fuel Subsidy will only be suitable for the rich but for others who can't afford it, it will be a big problem for them getting it.

7. The Removal Of Fuel Subsidy will affect commercial drivers in the country. Since the removal of fuel subsidy which has caused increase in the price of commodities and increase in the cost of transportation. Since the cost of transportation has been very high, most people have choose to trek than take commercial transportation. So if people don't take this commercial transportation anymore, how will the commercial drivers make money, so it will also affect commercial drivers in the country.

8. The Removal Of Fuel Subsidy can also affect people's health in the country. Since the cost of transportation is becoming very high in Nigeria, and people can afford it, they choose to trek, very soon most people will start suffering from leg problem which can affect their health in a very bad way. Also, the price of food is very expensive, if people can afford to eat their three square meals daily, then sickness like ulcer will also be very rampant in the society.

My View to the removal of the fuel subsidy is that, the federal government of Nigeria should keep on paying for the fuel subsidy and invest in other sectors aside from the oil sector, also create job opportunities, empower people and businesses, good education, good infrastructure, etc.

Then with these things the country will be able to stand on it feet very solid without any problem on the economy.

Thanks For Reading.

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