News flash: Fuel Subsidy removal kicks in Nigeria amidst protests from citizens

The Federal Government of Nigeria removes fuel subsidy earlier than promised. Nigerians, yesterday, January 01, 2012, were rudely awakened to a hike in fuel prices, signifying the removal of the fuel subsidy which the Federal Government had earlier stated will be removed in April of this year. The announcement of the removal was made known by the Petroleum Pricing Regulatory Agency (PPPRA). The development has been highly criticized by Civil Societies and several others as been highly insensitive to the plight of Nigerians, most of which are already burdened with the high cost of living and high levels of poverty. 80% of the population currently earn below $2 per day. Analysts say that this move further entrenches the lack of will on the part of the Government to tackle the issue of corruption, which many believe has led to the petroleum pricing problems. Whilst many Nigerians agree with the removal of subsidy in principle, they have, however, on several occasions called for the government to first tackle the problems associated with the supply of fuel, such as building refineries, dismantling and bringing to justice the cabal purported to be behind the petroleum pricing scam. They have also called upon the government to take a cue from neighboring countries such as Ghana who cushioned the effects of subsidy removal with several other visible palliatives. The effects of the increase in fuel has already kicked in as transportation prices immediately went up. It is expected that this will be transferred to other areas such as food, housing, education, health care and many others. The worrying aspect for many Nigerians who spoke out on this issue, is the fact that there isn't a commensurate increase in personal income, which can justifiably address the cost of living. For others who are watching the build up in scenario such as investors who are being cajoled to invest in the country; the uncertain operating terrain, the inconsistency in government policies and inability to plan and the lack of trustworthiness of the Nigerian government remains an issue of serious concern. The questions being asked by many include: When will the palliatives promised by the Federal Government kick into effect, if it ever will? And is there hope for the Nigerian people? Finally, anlalysts believe that this will further worsen the already rising case of insecurity currently being experienced in the country as many more will be thrown into the throes of poverty if the promised palliatives do not materialize to cushion the effects of the subsidy. The new fuel price is expected to go up by a whooping 116.9%.