On the 1st of January 2012 the Federal Government of Nigeria effected an increase in the consumer price of petrol, in what was described as the withdrawal of subsidy. The price of the product was hiked from 65 Naira to 141 Naira, with serious implications for livelihoods of Nigerians who depend on the fuel for transportation and electricity generation. The mass protests that attended the price hike have been described as the largest and most intense in the history of Nigeria, which forced government to partially reinstate subsidies.
But was there really a subsidy on petroleum products? What is the value of this subsidy? Why does the government need to import a product that the country produces? This briefing paper examines how the fuel subsidy regime reflects corruption in the petroleum industry, and the role of the Nigerian political leadership in sustaining the systems of fraud.
Fuels of Dissent is a must read for all interested in understanding the political economy of oil and the Nigerian state. Read Full Report
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