Nigeria, April 2 -- From Subsidy Removal to Debt Traps

Nigeria's age-long fuel subsidy regimes resisted reforms, drained public finances, fuelled corruption, encouraged smuggling, and undermined local refining. Repeated reform attempts failed to resolve the underlying distortions. Jonathan's 2012 attempt was reversed within weeks amidst "Occupy Nigeria" protests and Buhari's 2016 full removal was quietly reinstated under pressure. By 2022, subsidy costs surged to ₦4 trillion, with projections up to ₦17 trillion, about 77 per cent of the 2023 budget. On 29 May, 2023, President Tinubu abruptly declared "subsidy is gone", triggering a major economic shock. With fuel underpinning 90 per cent of Nigeria's transport and logistics, ...