on Monday announced fuel subsidy was gone because there is no budgetary allocation for it after June.Fuel subsidies are a form of government intervention to reduce the cost of fuel by providing direct financial support to oil companies, and as such, subsidise the product to consumers . Nigeria is one of Africa’s largest producers of crude oil, and it relies heavily on this resource for its economic growth.
1. Fuel subsidy removal, according to experts, would free up resources for other sectors of the economy. 2. The government spends a significant portion of its budget on fuel subsidies, which could be better spent on education, healthcare, infrastructure development, amongst other key sectors. 3. Establishments of domestic refineries to produce more petroleum products, reducing Nigeria’s dependence on imported fuel.5. Massive creation of jobs for Nigerians.