Removal of Fuel Subsidies in Nigeria: An Economic.
Fuel subsidy was, before the coming of the Goodluck Jonathan’s administration, a policy of the federal government meant to assist the people of Nigeria to cushion the effects of economic hardship. However, the controversy over the removal of fuel subsidy was sparked off in June 2011 at the instance of Nigeria Governors' Forum, which includes governors of the 36 federating states in Nigeria.
Africa’s largest oil producer, Nigeria, had introduced fuel subsidies to keep prices at bay. But on Wednesday, President Buhari said his government would no longer be able to sustain the process.
Incidence and Impact: A Disaggregated Poverty Analysis of Fossil Fuel Subsidy Reform 2 1. Introduction At least since the G20 Summit in 2009, fossil fuel subsidy reform has been high on the international policy agenda, with widespread acceptance of the notion that fossil fuel subsidies are fundamentally.
The possible effects of this policy on Nigeria’s economy are the subject of heated debate. Those who support the removal of the fuel subsidy have pointed out among other things that the subsidy regime was blighted by corruption and waste. It has been alleged that a large fraction of the subsidy funds have been collected by marketers who end.
This paper investigates whether the existence of fuel subsidy in Nigeria is a fact or fallacy. The results showed that fuel subsidy factors (fuel subsidy and price) accounted for 50.4 percent changes in fuel demand. The elasticity of fuel demand shows that a unit increase in subsidy leads to a 0.449 unit increase in demand. Similarly, a unit increase in fuel price accounts for a 0.886 unit.
Opinions have differed sharply in Nigeria on the continued existence of fuel subsidy. The opponents of Government-planned removal of fuel subsidy argue that the existence of fuel subsidy is a fallacy.
The real cost of fuel subsidy and tax implications By Taiwo Oyedele The recent announcement by the Federal Government of Nigeria to remove fuel subsidy with effect from January 2012 has been generating a lot of interesting debates and mixed reactions from different quarters. However, not much has been said about the tax implications to government, corporate entities and individuals. This.