Fuel Price Shock: FG Should Give Cash Transfers to Nigerians Instead of Restoring Subsidy

Rising global crude oil prices are pushing up the cost of refined petroleum products in Nigeria. As an oil-producing country, I believe Nigerians should not bear the full impact of global oil shocks. Rather than restore fuel subsidy, the Federal Government should provide unconditional cash transfers to Nigerians living in the country who have BVN records. The transfers should be funded from the additional revenue earned from higher crude oil prices and should help households cope with rising transport and energy costs. Fuel subsidy has repeatedly encouraged smuggling, hoarding and long fuel queues whenever Nigerian prices fall far below those in neighbouring countries. Cash transfers would allow citizens to benefit directly from oil revenue without creating those distortions. Every Nigerian with a BVN, regardless of political affiliation or income level, should receive support until crude oil prices return to normal levels.

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