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Fuel Subsidy Removal Leads to Queues in Nigeria

President Bola Tinubu in his inaugural address, said that the long-standing subsidy on petroleum products will be removed. The subsidy, which has been in place since the 1970s, is a significant drain on government finances.

Previous governments have attempted but failed to end the subsidy. He said the current 2023 budget only has provision for the fuel subsidy till June 2023. He added that the funds meant for subsidies will be diverted to other areas, such as public infrastructure, education, health care, and jobs.

Hours after the declaration, fuel queues resurfaced in major cities across the country amid uncertainty over the effect of the new policy. The Nigerian Midstream and Downstream Petroleum Regulatory Authority has cautioned Nigerians not to panic over the subsidy removal, saying it has enough petroleum products to meet demand.

Nigeria's main trade union movement has suspended its call for a nationwide strike to protest against a sharp increase in the price of fuel following the government's decision to stop subsidising it.

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