Fuel subsidy which has became a most contentions issue engulfing the nations political land scape, dates back to April 1992 when Ibrahim Badamosi Babangida’s government raised the price of a liter of fuel from 15.3 koko to 20 kobo. He did it again on March 31, 1986, from 15.3 kobo to 39.5kobo, on April 10, 1988 , from 39.5 kobo to 42 kobo.
On January 1, 1989, he increased the price from 42kobo to 60 kobo. Although, the regime said it was for private vehicles only but the price remained 41k for commercial vehicles. On December, 19, 1987, they moved to a uniform price of 60 kobo while on March 6, 1991
the price of a liter of fuel was increased from 60 kobo to 70 kobo and that was when he stepped aside in August 1993.
Chief Ernest Shoneken increased the price of a liter of fuel from 70 kobo to N5 on December 8, 1993 but a hectic mass protest saw Abacha take over power. The incoming regime reduced the increment to N3.25 and on October 2, 1994, the Abacha junta increased the price of fuel N15 but reverted back following the mass protest. Then came Abdulsalmi Abukaka’s caretaker regime that raised the price from N11 to N25 and on December 20, 1998, it was reduced to N20 after a sustained protect that lasted till January 6, 1999.
The Obasanjo’s presidency adopted fuel subsidy as the bedrock of its economic policy, for no sooner than he was sworn in then effected an increment to N30 on 1st June, 2000 but protest and mass rejection forced it to N25 and further to N22 by the time he left office, he raised it to N70.
When president YAR’ADUA came on board, he reduced the price of fuel to N65.
The good luck Jonathan administration has said it is fuel subsidy removal or nothing” if this policy sales through, the administration claims it is going to save the nation N1.134 trillion annually which the government argues that it is going to channel into infrastructure development it also argues that fuel subsidy removal is going to open up the supply and distribution of petroleum productions to force the demand and supply. Other argue that if our refineries are functioning optimally, the issue of fuel subsidy will not arise.
Hon Dakuku Adol Peter side is worried that the issue is unnecessarily meeting up the polity and is condemned to guiding the house of representative to making informed decisions on the issue rather than follow popular opinion and further stated the benefits that may accrue from the fuel subsidy removal.
Note: If oil subsidy is removed, part of N1.134 trillion that is spent annually will be used in re-activating the Nigerian rail way system which has gone moribund. It is unfortunate that some people in Nigeria has never seen a train or travel by railway except the few opportune to travel abroad or those that watched it through movies.
Related Posts: POLITICAL SCIENCE
Be the first to comment