The Subsidy Really Sounds Like A Good Idea

November 24, 2014 // 0 Comments

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 [...]

What Is Subsidy and How Does It Apply?

November 24, 2014 // 0 Comments

Subsidy means ‘the loss of revenue that should otherwise have accrued to the Federation Account if the crude oil allocated for domestic refining and fuel consumption were to be sold at International prices. With deregulation, the federal government commenced the sale of crude oil to NNPC at the international price as against the former practice of concessionary prices. Through deregulation, the government will now capture its entire take from the sale of crude oil to be channeled into [...]