- Posted January 2, 2012 by
This iReport is part of an assignment:
Trouble looms in Nigeria,Fuel subsidy removed
Millions of Nigeria woke up to face the harsh reality of Petroleum Subsidy removal in Nigeria.The Federal Government had long subsidized the petroleum products in Nigeria for more than four(4) decades and has decided as part of her New year package, to give Nigerians the news of “Fuel Subsidy Removal”, which takes effect from January 1st ,2012.
The Petroleum Industry in Nigeria is currently being deregulated. PMS (Premium Motor Spirit) which was formally N65(NGN) is now N141(NGN) as the official price in the local currency, which is slightly below a dollar.
About N1,7 trillion Naira will be saved and the Federal Government has promised to judiciously manage the funds that will be saved for massive development of infrastructure, but most Nigerians are skeptical.
Labor groups are threatening massive street protests and strikes. Long queues were noticeable in Petrol Stations as the news of the Fuel subsidy Removal Filtered in.
It’s on record that the pump price of petroleum Products sets a bench mark in Nigeria’s economy as the whole nation depends on these products to power generators due to irregular power supply.
An increase in Fuel price thereby translate to an increase in cost of production and as well means an increase in prices of goods and the one who bears the pains is the consumer……the poor Nigerians!