Over the years, the Nigerian economy has received subsidies across several sectors, including petroleum products, education, electricity, and foreign exchange. The practice of fuel subsidy was initiated during the 1970s and became firmly established in 1977 through the enactment of the Price Control Act, which prohibited the sale of certain products, such as petrol, at prices exceeding the regulated rates. Although the idea of subsidies is commendable, their implementation in Nigeria has been marred by significant accusations of corruption and mishandling. In 2016, thirteen years after diesel deregulation, the subsidy on kerosene was lifted. However, the petrol subsidy has emerged as the most formidable obstacle for those overseeing the Nigerian economy.

On May 29th, during his inaugural speech of President Bola Tinubu, he announced the removal of fuel subsidy. Following this announcement, the cost of premium motor spirits, commonly known as petrol, escalated significantly from N189, with some filling stations selling it for as much as N700 per liter.

The increased petrol price has also led to increase in the price of goods and services across the nation with many Nigerians clamoring for a palliative to cushion the effect. 

References:

https://punchng.com/five-things-you-need-to-know-about-fuel-subsidy-removal/

https://dailytrust.com/myths-facts-benefits-of-fuel-subsidy-removal/

Oluwaseyifunmi Oladipo.