Luanda - Nigeria's new President Bola Tinubu has declared the end of decades of oil product subsidies in the country.
According to the BBC publication, to which ANGOP had access, there is still no stipulated date to comply with the measure, but it is expected that the removal of the subsidy will lead to an increase in gasoline prices and could have a cascading effect on other prices.
Previous Nigerian administrations have tried, unsuccessfully, to end the subsidy originally introduced in the 1970s.
Despite Nigeria's oil wealth, the country's limited refining capacity necessitates the import of petroleum products, which are then sold at a government-regulated price.
However, the fuel subsidy turned out to be an important “suck-in” for public finances. Last year alone, it consumed a staggering 4.3 trillion naira ($9.3bn; £7.5bn), and a budget of 3.36 trillion naira was allocated for the first half of this year.
President Tinubu stressed that the grant can no longer be justified in light of Nigeria's economic and security challenges.
The country faces rising inflation rates, high unemployment rates affecting one in three people and reduced production in its vital oil industry.
Recognising these pressing issues, the new administration plans to release its economic roadmap in the coming weeks.
President Tinubu also underscored the need to address high interest rates which are an additional impediment to Nigeria's economic recovery.
In Angola, compared to neighboring countries, fuels are on average 70% cheaper, if we take as a reference the price per liter in January of this year.
During this period, while a liter of diesel sold for US$1.015, in Namibia it cost US$1.209, in the Democratic Republic of Congo (DRC) US$1.404 and in Zambia US$1.43.
In drawing attention to Nigeria's decision, it is important to note that Angola has not made any recent announcement regarding the end of fuel subsidies.
President Tinubu assumes the presidency, following the completion of Muhammadu Buhari's two terms. He inherits the responsibility of navigating Nigeria in a difficult economic environment.
Although the decision to do away with the fuel subsidy may result in short-term adjustments, the government believes that redirecting previously allocated funds will ultimately produce long-term benefits, fueling vital infrastructure projects and improving well-being. of the Nigerian people.
