Subsidy removal hits Osun commercial minibus operators hard

The removal of subsidy by the Tinubu-led administration, on the 29th of May has caused more harm then good to the thriving business of the minibus operator in Osun popularly referred to as Korope. This led to the price of petrol more than tripling from ₦194 to over ₦600. Drivers of korope are bitterly complaining of the low or no interest made on their daily transaction with commuters.

Speaking with drivers who ply the Olaiya to Agunbelewo axis at their car park at Olaiya, Mr Ganiyu recalled wistfully, that he used to buy N4000 fuel before to work for the whole day, after the fuel subsidy removal, he is now buying N10, 000 fuel daily but never realises up to the N10,000 he used to buy fuel.

Going back memory lane, fuel subsidy removal, was adopted following global oil crisis of the early 1970s. The Nigerian government introduced fuel subsidy to stabilize the prices goods and services. Introduced in 1973, the subsidy kept down the price of petrol for Nigerians. The government later found out that it was losing too much revenue as corruption added to the cost and eventually distorted the system.

Subsidy became even more expensive with the collapse of Nigeria’s four government-owned refineries, which gradually led to the importation of almost all the fuel consumed in the country.

The National Assembly had in 2021 passed the Petroleum Industry Act which mandates the government to stop spending on fuel subsidy. The lawmakers gave the government 18 months to stop the payment but former President Muhammadu Buhari asked for an an extension of the deadline to the end of June this year.