According to a Vanguard article, the Independent Media and Policy Initiative (IMPI) has determined that the former military heads of state Olusegun Obasanjo and General Yakubu Gowon established the fuel subsidy system in Nigeria.According to IMPI, these leaders introduced the subsidy at a time when Nigeria’s economy was robust, using it as a temporary measure to address rising international oil prices.CONTINUE FULL READING>>>>>
IMPI’s Chairman, Chief Niyi Akinsiju, explained that the subsidy was intended as a short-term response to oil price spikes caused by actions from the Organization of Petroleum Exporting Countries (OPEC).
Akinsiju criticized labor unions for their harsh stance against the current government’s removal of the subsidy. He noted that many Nigerians had anticipated its removal before 2023.
He stated that General Obasanjo formalized the subsidy into law, setting fixed prices for petroleum products, but acknowledged that petrol prices had still increased significantly under both Gowon and Obasanjo’s regimes.
He said, “It is, however, instructive to note that under the two principal protagonists of subsidy, the price of petrol recorded increments in response to emerging economic realities. Under Gowon, the price increased by 40 per cent from six kobo a litre to nine kobo a litre, while under Obasanjo, it skyrocketed by 70 per cent from nine kobo a litre to 15.3 kobo a litre.”
Despite attempts to remove the subsidy since 1988, there has been persistent uproar, according to Akinsiju.
He noted that the Nigeria Labour Congress (NLC) traditionally blames the federal government for price increases. However, he criticized the NLC for not acknowledging the broader economic impacts of subsidies.CONTINUE FULL READING>>>>>
