Why Fuel Subsidy Removal Is Good For Nigeria, By Felix Ayanruoh
Fuel subsidy is the transfer of economic resources by the government to consumers or producers of a good or service. The resultant incentive is to boost production or consumption of a commodity over what it would otherwise have been. However, critiques of energy subsidies believe otherwise. They say subsidies distort markets and discourage investments. Some have argued that subsidies exist where the Government fails to implement programs to internalize uncontrolled costs in energy markets.