Business
Jonathan to Nigerians: Please support fuel subsidy removal
Nigeria has to import its refined fuel, like gasoline and diesel, because decades of mismanagement and corruption mean its refineries are in disrepair.
Economists say the subsidy encouraged corruption and waste and handed over billions of dollars of government cash to a cartel of wealthy fuel importers.
The government estimates it will save 1 trillion naira (US$ 6.2 billion) this year by eliminating it.
Corruption
Most people in Nigeria live on less than US$2 a day and view cheap fuel as the only benefit they get from living in an oil-rich state. Critics say wealthy politicians should have found savings within government and tackled oil industry corruption before imposing costs on the public.
Jonathan said he understood the problems of corruption and the high cost of government, which were being addressed.
“We are all greatly concerned about the issue of corruption. The deregulation policy is the strongest measure to tackle this challenge in the downstream sector.”
