7 Challenges Nigerians Will Face As Petrol Deregulation Begins

According to Naij.com they listed 7 solid challenges Nigerians will begin to encounter as fuel subsidy have been removed


1. Protests The decision to deregulate petrol has torn Nigeria into those for and those against the removal of subsidy. On social media, those who are angry have begun mobilisation for a re-enactment of the 2012 #occupyNigeria which almost claimed the country. An oil refinery. Surprisingly however, most of those who partook in the 2012 edition may not likely be active this time.

2. Increased agitation by organised labour The time has come for the Nigeria Labour Congress and the Trade Union Congress to consolidate on their agitation for an increment in the minimum wage of the country’s workers. Currently the minimum wage is N18,000 and labour recently demanded for N56,000, an amount the government says it is still considering.

3. Commendation from IMF, WORLD BANK The duo of the International Monetary Fund (IMF) and the World Bank may have won in the call for Nigeria to carry out full deregulation sector as well as remove subsidy.

4. Sale of refineries Nigeria has four refineries which have gulped billions of dollars in maintenance, yet have not met expectation. It has always been sad news of low output. As reported, Kachikwu says Nigeria is currently speaking with Total, Chevron and Agip to see how a partnership deal could be struck concerning the refineries.

5. Passage of petroleum industry bill With the deregulation of premium motor spirit, the National Assembly could now be motivated to pass the petroleum industry bill to now give total deregulation to the sector.

6. Naira devaluation Did you just say it is not possible? In Nigeria, anything is. After all, President Muhammadu Buhari, in 2015, argued that it was not the best to increase pump price because it would affect other sub-sectors of the economy. He has also constantly argued that there was no serious reason to devalue the naira, but Nigeria is currently facing two-digit inflation and the citizens are not smiling.

7. Delayed economic recovery Though Kachikwu has promised that the price of petrol would stabilise in about six months, many still believe that the economy will take time to recover, especially with a president who believes in ‘slow and steady