Impacts of Fuel Subsidies in Nigeria

Fuel subsidies in Nigeria have long been a contentious issue, given the country's abundant oil reserves yet persistent fuel shortages. These subsidies enable petrol to be sold far below market value, leading to widespread disruptions as shortages frequently result in long queues at petrol stations. The government spends disproportionately on these subsidies, often compromising public spending in other vital sectors like health and education. When the prices for petrol rise due to the government's adjustments and the removal of the subsidy, it aggravates inflation and affects the entire economy, creating panic and protests among the population.