Not long that the new President, Bola Ahmed Tinubu ,who is currently the active number one citizen of the federal republic of Nigeria assumed the office which is not longer than 24 hours, he announced the removal of subsidy from the buying and selling of fuel. Immediately he announced this various fueling stations all over Nigeria already hike the price of fuel, double of the usual price.
The term "subsidy" is not a new word to those that have stayed much longer in Nigeria stock exchange cameo. Truly! It's not everybody that I have heard about the term subsidy that really understand what it's really means in practical and its theoretical form but I guess I should be to explain like I am explaining this term to primary 5 kids.
What's subsidy and removal of subsidy?
Without giving a stressful definition of what it means, subsidy is the support that's being provided by government to support her citizens in terms of giving out loans, grants, free access to education and many more. While the term removal of subsidy is a common term used by government by restricting itself from paying part any part of supply of fuel to her citizens.
Practically, it means the fuel importation and pump price are not tampered with by the government, meaning the citizens are buying directly the amount of the pump price. For example, let's say formerly the pump price was $5 per liter, the government subsided by paying $2.5 out of the $5 while its citizens buy at $2.5 but now that there is removal of subsidy, citizens are buying at $5 pimp price.
The state of nation and immediate solution.
Not long after His Excellency Bola Ahmed Tinubu announced the removal of subsidy, some pressure groups lie the Nigeria Labour Congress, Academic staff union of universities are already taking action to protest over the decisions but despite the pressure the President insisted he has made his decision which nothin can change.
While we are languishing on that, different States in Nigeria are taking steps to ease the pressure of the removal of subsidy. Ever since this takes effect, the cost of mobility means has doubled the usual price. For instance, where you normally pay $2 for transport has doubled to $4. So this one of the reasons why the Governor of Kwara state, in person of Abdulrazaq Abdulraham tends to reduce the working days from 5days of the week to 3days pending the time that the issue of removal of subsidy will be resolved.
Please note that, this isn't a cryptocurrency, financial or businessadvice,it's just an opinion. If you need a cryptocurrency, financial or business advice, consult a cryptocurrency or financial experts. Thank you.
