The Federal Government in Nigeria has stated openly it's plans to reduce subsidy on petroleum products by half next year...so prepare for a hike in fuel price.
That's not all. There is also a provision for a further subsidy cut in the proceeding years, 408.68 billion naira in 2016 and 371.18 billion naira in 2017.
Now what exactly is the excuse for the fuel subsidy cut? The Minister of Finance and co-ordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala has said the purpose of this subsidy cut is to increase revenue, the reason being due to price cuts globally in oil price. She further stressed the Government's need to cut non-essential spending.
What exactly is the non-essential spending, fuel subsidy or government officials' exorbitant allowances?
