Economist Podcasts Playing the fuel: reforming Nigeria’s subsidies
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Sep 17, 2024 Discover the challenges Nigeria faces with large fuel subsidies, impacting essential public services. Hear about the promise of new oil refineries and innovative strategies Nigerians are adopting to cope with rising petrol prices. Shift gears to Texas, where the crypto-mining boom is tempered by energy concerns and looming regulations. Finally, explore the thrilling rise of Indonesian horror films, a genre blending cultural narratives and international appeal, showcasing a filmmaker's inspiring journey to fame.
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Fuel Scarcity in Lagos
- Nigerians are sensitive to petrol prices, impacting not only motorists but also many who rely on petrol for generators.
- Fuel scarcity and long queues are common occurrences, deeply ingrained in the Nigerian experience.
The Economics of Fuel Subsidies
- Nigeria's fuel subsidies create artificial shortages and incentivize smuggling to neighboring countries.
- This has been a persistent issue, observed even 25 years ago, due to government-mandated below-market prices.
Wasteful Subsidies
- Nigeria's fuel subsidies are a wasteful policy, costing four times the health budget.
- This disproportionately benefits car owners while hindering investment in essential services like healthcare and education.