The newly elected president of Nigeria, Bola Tinubu, has been inaugurated into office. President Bola Tinubu during his inaugural address outline policy changes designed to stabilise the country’s economy. He said that the petroleum product subsidy, which had existed for decades, would be removed.
Hours after President Bola Tinubu’s announcement that the government would remove the fuel subsidy scheme because it was unsustainable, long lines of drivers gathered outside gas stations throughout Nigeria’s major cities on Monday.
He was elected in a controversial vote and campaigned on a platform of restoring people’s faith, but he now struggles with serious economic and security problems.
When the new policy will take effect is unclear, but it is certain that the removal of the subsidy will cause fuel prices to rise, which may have an impact on other commodities prices.
Many previous administrations in Nigeria have attempted and failed to get rid of the subsidy, which was initially implemented in the 1970s. The subsidy places a significant strain on government coffers. This consumed up to 4.3 trillion naira ($9.3 billion; £7.5 billion) in 2017 and 3.36 trillion naira in the first half of this year.
The new president stated that the subsidy was no longer necessary and that the government would use the money to improve public infrastructure and the quality of life for the general population.
However, hours after the pronouncement, petrol queues resurfaced in major cities around the country due to confusion regarding the policy’s implementation.
Lines at petrol stations have resurfaced in Abuja, according to a Premium Times reporter who went out Monday night to check on the situation.
In the nation’s capital city, some gas stations were closed, while others were jam-packed with people on motorbikes, tricycles, cars, and other vehicles.
It was common to see gas stations in the Lugbe neighbourhood of Abuja charging between N194 and N198 per litre. Locals stated they paid N230 per litre for petrol at gas stations outside of Abuja. As of Monday evening, drivers had formed a long queue at the NNPC petrol station on Airport Road in Lugbe.
Unemployment is at a 19-year high, inflation is at a level not seen in over 18 years, and production in the essential oil industry is falling. Mr. Tinubu mentioned these difficulties in his address, noting that his team will unveil its economic road map in the coming weeks despite the fact that interest rates are excessively high.
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