Fuel subsidy removal will ease Nigeria's finances

Significance

The announcement set off panic buying as motorists rushed to purchase fuel before prices went up, causing long fuel queues across the country. The announcement also came just days after former President Muhammadu Buhari officially commissioned a new 650,000 barrels-per-day (b/d) refinery owned by billionaire Aliko Dangote.

Impacts

• The recent currency devaluation may drive the naira price of fuel up further.
• Tinubu may look to sell a range of public assets, including moribund refineries, to raise revenues.
• The fuel subsidy removal may help make the Nigerian National Petroleum Corporation (NNPC) a profitable enterprise.