ANSWERING SOME OF YOUR FREQUENTLY ASKED QUESTIONS:
Dear brothers and sisters,
I would like to thank you all for engaging in a lively and respectful debate on the fuel subsidy. It is heartening the passion all of us have as Nigerians to usher our country into a better future. I have enjoyed communicating with all of you in this forum, and I have taken pains to read your responses.
Many of you have similar questions regarding the reasons behind the subsidy removal and the impact of the removal on Nigeria’s economy. In response, we have complied a document with answers to many of those questions. You may view the document by ‘clicking on the link above’.
In the document you will find answers to the following:
1. What is meant by the deregulation of the downstream petroleum sector?
2. What is the rationale behind the government’s plan to deregulate the downstream petroleum sector?
3. How important is pricing to deregulation of the downstream oil sector?
4. Is rehabilitating the refineries part of the strategy for deregulating the downstream petroleum sector?
5. Are there countries that have deregulated their downstream petroleum sector and removed subsidies?
6. Why not a staggered, phased removal of fuel subsidy if at all?
7. Has deregulation succeeded in other sectors of the Nigerian economy?
8. What is fuel subsidy?
9. Who benefits from government’s fuel subsidy?
10. Is it really true that fuel subsidy removal will benefit only the rich and not the poor?
11. How much does government spend on subsidy?
12. Is there any provision in the budget for fuel subsidy?
13. Shouldn’t government fix the refineries before removing subsidies?
14. Why should Nigeria remove fuel subsidy when other OPEC countries have their petroleum products subsidized?
15. Why should Nigerians not enjoy low fuel prices since the country is a major oil producer?
16. Must the government remove subsidy to provide infrastructure?
17. What are the government’s plans to cushion the effects of subsidy removal?
18. Why not start pilot measures to ascertain that they will work effectively before removing the subsidy?
19. What assurance is the government giving to Nigerians that the additional revenues from petroleum subsidy removal will be judiciously used?
20. WIll the removal of subsidy not cause scarcity?
21. How does petrol price in Nigeria compare with those of other countries?
22. Is petroleum the only source of government revenue? Why not explore other means of revenue generation?
23. Why is government not seeking savings through a sharp cut in government expenditure?
24. If the National Assembly rejects the proposal, has the government considered the political implications of going ahead with the removal?
25. Is the timing right?
Thank you and may God bless Nigeria!