The Subsidy Really Sounds Like A Good Idea

Subsidy poses a problem to the socio-economic development of the country. As stated above, the subsidy on crude being enjoyed by Nigerians was several billions of naira annually. That amount of money should rather be channeled to developmental projects for the benefit of all. Besides, subsidy even negates fairness and equity. This is so because the subsidy as currently practised in the country favours the elite class much more than the poor. After all, an average elite uses more litres of fuel than an average poor man.

In some other countries, subsidy is applied in areas such as agriculture, health, education, etc. In these areas, subsidy is beneficial to the majority. It is better to subsidise production than consumption. If the subsidy is for consumption, it should be properly targeted such as the new feeding programme for school pupils.