The removal of the Fuel Subsidy by the Nigerian government.

The removal of the fuel subsidy in Nigeria has been a contentious subject which has been quite popular in the news domain (written journals, visual media etc) quite recently. First before I make any suggestions on what must be done in this domain of subsidies, i ought to touch on the implications of subsidies economically and socially.
Firstly a subsidy is an economic externality by the government to spur an increase in the supply of a certain good due to several reasons specifically if the good is a necessity. In this case for a couple of decades the Nigerian government has provided a subsidy for fuel importers due to high demand of fuel by Nigerians and the lack of supply thereof to meet the high demand. As a Nigerian nation which produces crude oil the issue of a subsidy should not arise at all, there is simply no logical reason why Nigeria as a nation should import fuel, a processed form of crude oil which is extracted from our land. Ordinarily, the government ought to create an opportunity for private investors to build refineries in the country to satisfy this demand. Although this is a proffered solution to the problem, I ought to highlight what can be done at this present time, since the government cannot provide environments in which private investors can exploit the market imbalances in the oil economy (demand and supply), I suggest the subsidies must remain until this problem can be solved by the government.
Economically, a subsidy is a negative externality and shouldn't be encouraged and the government has the right to cancel these subsidies but the question arises, is there an alternative provided by the government? There are however some benefits through the removal of this subsidy. First, the oil importers (downstream firms) may look into the possibility of investing in refineries due to the the blockage of subsidies which benefit their actions of fuel import. secondly the firms which are benefiting immensely from the Nigerian taxpayer would be henceforth given a level playing field with other importers or other firms who have attempted to invest in refinery building across the country instead through the cancellation of these subsidy.
However the negative from the removal of subsidy is that as we know from history and presently, the Nigerian government is one of the most woeful managers of the funds entrusted to them by the Nigerian people. What happens when the US$ 8.6 billion (Source 234next.com) of oil subsidy given to oil importers seize? we as tax payers lose a guaranteed benefit from our government and the funds is entrusted back to a government which is woeful and has failed in managing funds appropriately.
My suggestion to the government is to reduce the subsidy however not automatically removing it and account to the Nigerian people the projects which would be enacted due to the subsidy removal and must be finished within the allotted time as specified, therefore trust would be gained and gradually we can now see a phasing out of the subsidy, wherein the funds maybe used for the provision of amenities we so desperately need in Nigeria.

God bless Nigeria.
The Reformed Nigerian.

Spending money wisely- Scrap of the Sponsor of religious trips by the Nigerian Government

It has been a while i posted here, but i would endeavor from time to time to begin an assignment to do that more often. Today's topic is on the Hajj and pilgrimage trips sponsored by the federal government of Nigeria. Every year millions of dollars are spent on the trips to Jerusalem by Christian followers and the trips to Mecca by Muslim followers by the Nigerian government. I think the time has come to do away with this, we only ought to look around us and ask simple and basic questions. Can the money we spend on this trips be used to improve our public hospitals, our public roads, our public schools, public amenities etc. The Nigerian government ought to focus on what is most paramount, thereafter the excess may then be considered for things of this nature. I feel that the nation needs help in a lot of areas and all leakages must be blocked, I consider these funds spent on pilgrimages as unnecessary. My advice for the federal government of Nigeria is to henceforth stop this high spending on pilgrimage and focus on what is most dear to the lives of Nigerians, what affects us daily and divert the funds to improving our basic amenities.

May God bless Nigeria,

The Reformed Nigerian.

And the truth shall set you free!

Good Day Fellow Reformed Nigerians,

The Reformed Nigerian would from time to time comment on the happenings in Nigeria from a political and moral perspective. I hope to analyse issues most paramount to common Nigerians and give recommendations as well as critical analysis for the people in charge- our politicians, our civil servants, our businessmen and most importantly the common Nigerian. The situation in Nigeria needs to improve and it is with hope that as we draw attention to these issues dear to our hearts and our great Nation, this blog would act as a platform and a catalyst for change with the main aim of making things better than they are at present through suggestions, recommendations, critiques and holding those in authority accountable. I leave you with the famous quote, "All that is necessary for evil to triumph is for good men to do nothing". I hope that this blog would herald a new thinking and forge all of us towards making our community a much better place for our children and grand-children.

Yours Truly,

The Reformed Nigerian.