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.
By Nonso Obikili.
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.