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Unique Insight Into Nigeria’s Fuel Subsidy Scheme
ARK
July 2nd, 2019 9:28 pm

If you’ve got the appetite for a medium length read: here’s an interesting analysis of Nigeria’s fuel subsidy scheme, from a unique perspective.

  1. https://businessday.ng/columnist/article/which-states-are-losing-from-fuel-subsidies/

By Nonso Obikili.

My Summary

Whoever consumes more fuel gains more from the subsidy. It’s just like Jensen of Nvidia’s funny statement: “the more you buy [spend], the more you save.”

However, the cost of the subsidy is distributed according to the Federal revenue sharing formula. This is wild.

I seriously doubt the Governors of the low performing/productivity states understand this.

O.J

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