Thursday 19 January 2012
Friday 6 January 2012
'Fuel Subsidy' In Nigeria - Making Transportation Onerous
On New Year's Day, 2012, Nigerians woke up to a gift from President Goodluck Jonathan. His government announced that the 'fuel subsidy' that government provided to allow Nigerians enjoy affordable petrol costs was being withdrawn immediately. In one fell swoop, the pump price for petrol went from 65 naira to 141 naira per litre. This was no laughing matter. Instantly, many of those that traveled to their towns and villages for the Xmas and New Year celebrations became stranded as transporters - mainly interstate bus operators - jacked up their prices. Some increases were nearly triple the price of the original trip.
AllAfrica.com reports as follows:
In Lagos, the fares to most parts of the state were increased by over 100%. Transportation between Ikeja and Yaba now costs N400 instead of the previous N120; Obalende to Oshodi which used to be N70 is now N200 Ojodu to CMS is now N500 from N150.
Commuters traveling to Abuja from Lagos now pay between N6,000 and N8,000. At the Ekesons Motors in Jibowu, transport fare to Port Harcourt is now N6,000 from the previous price of N2,500. Many Lagosians are reportedly staying indoors due to the increasing transportation costs.
Presently, protests are spreading across the country. At least one person has been killed.
The government insists there is no going back because of the 'macroeconomic' benefits that are promised if the subsidy is invested in the productive sectors of the economy. Most Nigerians are not convinced as they have seen such past promises go up in the smoke of endemic corruption.
What is certain is that the cost of transport will go up. And not come down for the common man to benefit from the promised 'macroeconomic' benefits.
AllAfrica.com reports as follows:
In Lagos, the fares to most parts of the state were increased by over 100%. Transportation between Ikeja and Yaba now costs N400 instead of the previous N120; Obalende to Oshodi which used to be N70 is now N200 Ojodu to CMS is now N500 from N150.
Commuters traveling to Abuja from Lagos now pay between N6,000 and N8,000. At the Ekesons Motors in Jibowu, transport fare to Port Harcourt is now N6,000 from the previous price of N2,500. Many Lagosians are reportedly staying indoors due to the increasing transportation costs.
Presently, protests are spreading across the country. At least one person has been killed.
The government insists there is no going back because of the 'macroeconomic' benefits that are promised if the subsidy is invested in the productive sectors of the economy. Most Nigerians are not convinced as they have seen such past promises go up in the smoke of endemic corruption.
What is certain is that the cost of transport will go up. And not come down for the common man to benefit from the promised 'macroeconomic' benefits.
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