Catastrophic Effects Of Rash Government Decisions On The Nigerian Economy.
So Nigeria has a new president and so the last few hours have been filled with both merriments and panicking in several parts of the country. I wouldn't get into the details of the electoral processes that led to the present state of having Bola Ahmad Tinubu as the president of Nigeria but for some reasons quite alot of Nigerians feel okay with it and have accepted the fate. I get it, Nigeria is a peacful nation, no one wants any more distractions and most importantly, most people don't want to get involved with anything and anyone that won't have a direct benefit to them in the long run. However so many people are skeptical, so damn skeptical about this current administration. From their intentions to, to their actions, their goals and what state they put the country after the end of the first tenure.
The first thing BAT did was to announce the removal the fuel subsidy which kinda made fuel prices cheap for Nigerians and his statement caused abit ofchaos as it caused panicking among buyers and sellers of fuel. I do have an issue with this decision because it was made in less than an hour of being sworn as the president without a finance minister or a bill passed to house of representatives where decisions of this sort are to be democratically made. This is very similar to what Muhammadu Buhari did his tenure with the fiat that led to an economic chaos that many still suffer from today. It seems like tbe nee president didn't learn from the mistake of his predecessor and secondly, one of my concern is how funds would be managed by this government when even the last government who had an almost stainfree history did worse than we've seen in recent times.
Well, it's just the first day and maybe so many of us are just panicking and getting worried unnecessarily. So I'm hoping the man of the moment proves those of us who think he isn't capable of the job wrong. It's the best thing I can wish Nigerians right now.
Fuel subsidies are paid through government funds, which should be paid by taxes, but sometimes simply add to government debt, when taxes are no longer enough. The question becomes, who is actually paying for these subsidies and who is actually benefitting from them. Fuel subsidies can also get people used to spending more on transportation than is really affordable. I think it might be better to not have subsidies, unless someone can draw a clear line as to how to apply them and pay for them, economically.
I just have a problem with our people. They panic too much. They're beginning to sell fuel at expensive prices which does not make sense.
Some are already buying about 100ltrs in their houses. It got me wondering because it is not as if fuel wants to finish