READ: 7 Things To Expect In Nigeria Now That Fuel Subsidy Has Been Removed

After it was announced that the Federal Government has removed subsidy on fuel and that petrol would now cost N145 per litre, there was a general outcry from Nigerians...


The decision did not go down well with most Nigerians as they saw it as an added burden on the average Nigerian who is struggling to cope with the high cost of living as caused by the ailing economy.

Here, we present you 7 things, both positive and negative, to expect now that subsidy has been removed on fuel.

1.) Increase in cost of food and transportation.
Even before subsidy was removed, the cost of food and transportation shot up because of the fuel scarcity. Now that subsidy has been removed, you can expect things to go up albeit maintaining a fixed price.

2.) Solution to fuel scarcity problems as the government and private owners would ensure availability of products at all locations in Nigeria.

3.) Reduction of smuggling, hoarding and diversion of petroleum products.

Before now, petroleum products were smuggled out of Nigeria to neighbouring countries like Benin republic because the fuel was subsidised and any loss was at the expense of the government. Such things now will be done at the loss of the importer or seller.

4.) The removal of subsidy should provide extra revenue for the government to address social and infrastructural needs of the country like road, electricity e.t.c

5.) There would be encouragement of private sector participation which would lead to competition and presence of competition means a potential drop in price of product.

6.) The removal of subsidy should also help the government focus on the development of our refineries and get it working at full capacity.

7.) This present move would eliminate any form of fuel subsidy payment in future