Tag
FUEL SUBSIDY REMOVAL
Analysts at FocusEconomics have said that the fuel subsidy removal fallout and the devaluation of the naira will fan inflationary flames through the second half of 2023.
The price of petrol skyrocketed from N187 to N500 per litre, and then to N617 and many motorists could no longer afford to fill their tanks.
In a recent interview conducted by Nairametrics, Mr Chuks Umezulora, the co-founder and Chief Operating Officer of Auxano Solar, shed some light on the impact of the fuel subsidy removal on the renewable energy industry.
Analysts predict that eliminating fuel subsidies and implementing a new FX framework will encourage foreign investments in the country.
The World Bank has said that Nigeria is projected to save up to $5.1 billion (N3.9 trillion) in 2023 alone after the removal of fuel subsidy and reforms of its foreign exchange market.
The Nigeria Labour Congress (NLC) has put forward a wage award proposal to the Federal Government in an effort to alleviate the impact of subsidy removal on Nigerian citizens.
Global audit, consulting, and financial advisory firm Deloitte revealed that while the immediate impact of removing fuel subsidies in Nigeria may be negative, the long-term benefits for the economy could be substantial.
Nigeria’s President Bola Tinubu acknowledged the hardships of the fuel subsidy removal on the lives of Nigerians on Monday.
KPMG Nigeria has said that the fuel subsidy removal may likely push Nigeria’s inflation rate to about 30% for June 2023.
Andrew Nevin said that pensioners and state workers will be the immediate beneficiaries of fuel subsidy removal.
Nairametrics presents some tips for navigating the drastic increase in fuel costs following the removal of fuel subsidies in Nigeria.
The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Major Oil Marketers Association of Nigeria (MOMAN) have pledged to manage petrol distribution costs to minimize the impact on petrol pump prices.