i know with no doubt in your mind and mine i can figure out that have not post just a dot on here this year....
not my fault but the Economy of this my God will soon bless country......lately i have encountered so many problem...one from my ISP, and secondly the situation arising in the country, lastly i have personal problem which i can discuss privately..."if you are so much interested"...i will like to say something on the soo called FUEL SUBSIDY REMOVAL on the NIGERIAN economy...precisely the impact and shortcomings of the policy....
1. Increase in cost of production – Removing fuel subsidy while at the same time devaluing the naira would result in increase in the cost of production for the few companies that are still existing. This would lead to more job losses (as the companies would be forced to down-size in order to survive) in addition to the unavoidable increase in the cost of the companies products.
secondly....2. Increase in the cost of providing services – Removal of fuel subsidy will render the proposed 2012 budget estimates
“read more” because the astronomical inflation arising from subsidy removal would not have been factored into the budget. It will certainly cost much more to construct a kilometer of road or a bore-hole for example when subsidy is removed. In actual fact, simple photocopying paper would cost much more post subsidy removal than is the case now. So how can anyone convince us to expect more dividends of democracy when fuel subsidy is removed?
3. Increase in the cost of transportation – Everybody appreciates the fact that when motorists pay more for fuel, the transport fare increases. This has been the case even when the increase is only marginal. In the particular case where the cost of fuel is expected to double, the increase in transport fare will be astronomical.
This will in turn affect everything else – school fees, house rent, just name it.
4. Increase in cost of living – In addition to school fees, house rent, etc. the cost of every item of food will astronomically increase with removal of fuel subsidy and, for all sane people, this is where the trouble is. When poor people are unable to eat or afford the full square meal as its bound to happen when fuel subsidy is removed, there will be no peace in this country. This is a fact we must accept and it is one reason why the implications of all policies must be rigorously scrutinized before decision is taken. For any responsible government this is enough reason to jettison the idea of fuel subsidy removal.
lastly.....Increase in corruption – Removal of fuel subsidy and devaluation of the naira would render the salaries received by civil/public servants at all levels inadequate.
The tendency is that corruption, which the government has proved incapable of fighting, would increase. This has always been the case and there is no reason why this will not happen now.
feel free to drop your view as-well as to help Nigerians to apply tactical measures....
thanks for the love....Omogha signing out.
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