Nigeria government’s position on fuel subsidy fuels reactions

Amid a global race to beat the COVID-19 pandemic, the Nigerian government is placing priority on funding a wasteful petrol subsidy scheme worth about $ 315 million monthly, an amount capable of vaccinating at least half of its adult population (53m people).

After a year of dilly-dallying on the removal of petrol subsidy, it is now official that the burden that has shortchanged Nigerians the most is real and active as the state oil firm has confirmed spending up to $315 million (N120bn/ exchange rate N380) a month on fuel subsidies.

The expenditure on subsidy for PMS also dwarfs the government’s proposed 2021 spending of N45.19 billion allocated for immunisation against measles, whooping cough, and tetanus to the most vulnerable and disadvantaged children, despite a UNICEF report showing 4.3 million children in Nigeria still miss out on regular vaccinations every year.

In a period Nigeria has one of the world’s highest numbers of out-of-school children, 13.2 million, according to the United Nations Children’s Fund (UNICEF), the amount spent on subsidy in one month is also larger than the entire 2021 budget of N94.4 billion meant for the provision of Universal Basic Education (UBEC).