The government introduced the fuel subsidy in nigeria, which has lasted for many years.
When did it all began and what is fuel subsidy? Nigeria is the biggest producer of crude oil in africa but still needs to import pms.
The country produces about 2,4 million barrels of crude oil but the majority if being exported abroad.
Due to the heavy corruption and many years of being neglected, the local refinaries factories stay out of work.
As a consequence, the country imports nearly 70% of the petrol used in the country. With the price of petrol ranging about a half of a nigerian citizen’s daily budget of about $2, the wisest decision was to introduce fuel subsidies.
The economy of the country has always been highly dependent on the crude oil.
Among other reasons, the absence of constant and stable electricity supply makes private households and small enterprises depend on generators.
The fuel subsidy policy in nigeria was introduced as a means to stabilize the price of fuel until the local industries pass the rehabilitation process.
They were meant to last for six months only but have lasted for twenty-four years.
The licenses for the rehabilitation of the country’s refineries were given to a range of companies that have, actually, done very little or nothing to improve the situation.