In the News
Nigeria cuts fuel subsidies and the traffic jams disappear!
6th September 2023
This sort of article is economic gold dust: it could be microeconomic, looking at the effect of removing fuel subsidies and efficiency, or macroeconomic, looking at how microeconomic policy has macroeconomic implications, notably for economic growth, the efficient functioning of labour markets and unemployment, or even developmental economics, because of the impact of the policy of living standards.
An excellent beginning of term starter for Year 13 perhaps, getting them to revise issues that you've looked at last year?
Nigerian President Bola Tinubu recently announced an end to the fuel subsidy program that had long provided Nigerians with some of the cheapest oil prices in Africa. The subsidy had become a huge financial burden on the government, accounting for about a quarter of the country's import bill.
Tinubu's decision to end the subsidy caused gas prices to spike, leading to inflationary pressures throughout the economy. Supporters of the move argue that the subsidy was unsustainable and needed to be eliminated to improve Nigeria's economic prospects, while critics say it's a harsh blow to the average Nigerian, who is already struggling with high prices for basic goods.
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