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General News of Monday, 5 June 2023


Fuel subsidy removal in Nigeria impacts one African Country - Report

Fuel subsidy Fuel subsidy

President Bola Tinubu on Monday, May 29, pronounced that "fuel subsidy is gone" while taking the oath of office in Abuja.

The announcement by the new administration has held the country at ransom as fuel marketers immediately increase the fuel price while some filling stations closed.

However, the effect of the removal of the fuel subsidy was not only felt in Nigeria but also in neighbouring countries.

So, far, fuel price has increased in Benin, a neighbouring country, the same week Nigeria scraped the existence of the fuel subsidy regime.

According to BBC Pidgin, petrol prices in the West African country increased in the same week that announced the removal of the fuel subsidy.

Gasoline price has increased from 450 CFA to 700 CFA or even 800 CFA”, a Benin-based person, Clément Sodji tells BBC.

There are reports that some of Nigeria's subsidized petroleum products are being smuggled into the Benin Republic and the commodity is mostly being sold by the roadside.

It was also reported that the product was serving a large population of the West African country.

President Bola Tinubu announced the removal of the fuel subsidy on his inauguration day, and within a few hours, fuel marketers inflated the price while some petrol stations later closed, saying they have ran out of the commodity.

The government team later came out to explain that the removal of the fuel subsidy will take effect from the end of June as stipulated in the 2023 budget.

However, on Wednesday, May 31, the Nigeria National Petroleum Corporation (NNPC) Limited announced that the government has officially stopped subsidizing the commodity.