Before Nigerian government decide to embark on its decision to remove its hands from paying some
percentage of the actual cost of
petroleum product to the oil company, otherwise known as petroleum subsidy”
good number of notable reasons were out lined. However, each of these
reasons were compared side by side with the importance of petroleum subsidy to
Nigeria educational, socio - political and economic life. The question is simply
put, should Nigerian government continue
to spend N1.25 trillion annually
on fuel subsidy or is there any
other
sector of the economy of the nation that needed more urgent attention an attempt
to resolve these question will
take us to the analysis of some of these reasons as noted below:
1.
To reduce
corruption in the down stream sector
2.
Provision of
Basic Amenities
3.
To reduce
government debt
4.
To increase
investment / industrialization
5.
Transformation of
the petroleum sector
6.
To increase the nation’s foreign reserve and saving
7.
For enhancement of the countries
national development
8.
To establish more
refineries and crate employment opportunities
9.
To repair infrastructural decay in the country
10.
To make way for
transparency and competition in the oil industry
SOURCE: Report from neighbor to neighbor initiative (plateau
House, Ralph Sodeinde Street Central Business District Abuja Nig.)