One befuddling indulgence of the FG, over time, is the fuel subsidy regime. There are those who would swear that what is referred to as subsidies essentially a subsidization of monumental corruption. Unknown to millions of Nigerians, the stormy fuel subsidy regime had been in place since the 1970s when govt routinely sold petroleum products at below cost in the international market when the price Central Act became instituted under military regime of General Obasanjo, in 1977, subsidy became institutionalized to cushion the effects of the “Great Inflation era of the 70s. What’s mind-boggling's that we allowed all four refineries in our country to go down under.
In the last 16-20 years, we have expended an estimated $30bn on fuel subsidies. Various administrations had attempted to remove this burden without any luck. In 1986, the IMF struck for the first time, when the Babangida government increased the pump price of petrol from a partly 20k-39 kobo a liter. The action triggered a nationwide strike. Former President Jonathan attempted a total removal of subsidy, in 2012. It was greeted harshly. Then the IMF came again. It was advised a removal of the subsidy backing. The government has hinted at removing the subsidy backing. This is bound to affect the pump price of imported refined petroleum products in the new year. The NLC is spoiling
The coming weeks are pregnant. Are you ready?
