Nigeria's fuel discount reignites subsidy debate
High energy prices are among the key campaign issues ahead of January’s presidential election.
Nigeria has introduced a new discount on fuel, reigniting a long-standing debate over the merits of ending the subsidy program that was terminated three years ago. The decision was made by Finance Minister Taiwo Oyedele and it includes a 30-day discount on petrol sold at government-owned pump stations. Oyedele insisted that the discount was not a subsidy, a claim that was widely dismissed by analysts.
This move has opened a window of criticism for President Bola Tinubu's main rivals as high energy prices are expected to be a major campaign issue ahead of the January presidential election. Tinubu ended the subsidy following years of recommendations by international bodies like the IMF, who argued that the program, which cost $10 billion in 2022, was wasteful and corrupt.
However, its removal led to a sharp increase in fuel prices, a situation further exacerbated by the Iran war which cut energy supplies.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
