Relax, Atiku Will Not Restore Subsidy
Alhaji Atiku Abubakar, the ADC presidential candidate, has causedchaos among policy analysts by threatening to restore petrolsubsidy if he is elected president. Many have been asking: why is he trying to drag us back after we had finally crossed the Rubicon?By the way, bringing down the price of petrol looks great on paper.
Alhaji Atiku Abubakar, the APC presidential candidate, has sparked controversy by threatening to restore petrol subsidy if elected. His proposal appears compassionate but faces criticism for potential economic harm. Atiku's assertion could lead to a fiscal crisis due to significant revenue loss from refineries. The loss would force government agencies to cut expenses, potentially impacting road projects supported by subsidy removal.
Transporters may not immediately lower their fares despite cheaper petrol, as they have other expenses to cover. The assumption that refineries will refine the crude oil at a subsidized price is unlikely, as they may instead become oil traders. Smuggling, which has decreased since subsidy removal, could increase if subsidy returns.
Atiku, with experience in the matter, is likely aware of these consequences and is using the issue to appeal to voters' emotions.
Written by urgent.news from This Day's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
