The Intelligence from The Economist Playing the fuel: reforming Nigeria’s subsidies
Sep 17, 2024
Explore how Nigeria's fuel subsidies are shaping public services and the potential of a new mega refinery to drive reform. Discover the shifting landscape of Bitcoin mining in Texas as regulatory challenges complicate its future. Dive into the rising popularity of Indonesian horror films, influenced by local folklore and a director's compelling backstory. This discussion navigates pressing global issues from energy dilemmas to the thrills of cinema.
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Fuel Scarcity in Lagos
- Nigerians regularly experience fuel scarcity, leading to queues and fights over petrol.
- This affects everyone, not just car owners, as petrol powers small generators.
The Economics of Fuel Shortages
- Nigeria's fuel shortages stem from government-mandated below-market prices for petrol.
- This creates shortages and incentives for smuggling to neighboring countries.
Wasteful Subsidies
- Fuel subsidies in Nigeria are wasteful, inequitable, and drain public resources.
- They cost four times the health budget, benefiting mainly car owners.