Dont remove Fuel subsidy, allow state to have state fuel taxes


If the federal govt is sincere that it want development. The federal govt should continue to subsidy fuel, but allowing state to have state fuel taxes. that way. the govt even while still subsidy, still get money back.

the way the state fuel taxes works is this way. each state in Nigeria depending on its people need introduce its state fuel taxes.   which is added to the price of petrol.  this state fuel taxes will vary per state. You do not expect bayelsa state to charge the same rate with lagos state .  You dont expect Yobe state to charge the same with lagos or kano state, because the living condition in bayelsa state or Yobe or zamfara state is different from Lagos or kano state.


So the way state fuel taxes works is that each state house of assembly will determine how much they consider to be fair to their people.

The fuel rate will still be N65 but each state will charge extra. Lagos may charge N40 extra. while a state like bayelsa may charge less.  or yobe state assembly will charge less.

while you increase salary again to match this new development.

this way, you are getting back the fuel subsidy money through the state.

By increasing salary, it means you are putting more money into the hand of people. But you want to be smart the way, you increase salary. You are better off increasing the allowance. You can doubt or triple people allowance.

the reason why you increase salary is that so that they can be able to pay for the state fuel taxes. It also allow the economy to grow. the more money nigerian have the more they can spend on their family.

When nigerian buy more, it means the production section increases. which mean more jobs for the youth.

dont worry about inflation. There will be inflation in some sector of the economy. But it will not have the same proportionally with the increase. Even if inflation is 30% of the equivalent of people salary. they still gain 70% which make them to spend.

Spending is critical to manufacturing sector for it to grow. the more people spend the more the manufacturing companies produce to meet the demand.

The need for it to be state fuel taxes and not federal govt taxes , is so that development can be uniform. federal spending do not bring uniform development in a nation. which is the reason for under development of africa.

One advantage of state fuel taxes is that govt get back the fuel subsidy through state. And state become less dependent on the federal.


Value added taxes or what they call state goods taxes is determine by each state and not the federal govt. and it is collected by each state. It vary per state you go to, because each state is different. You dont expect bayelsa to pay the same with lagos or sokoto etc.

if you remove fuel subsidy, the man in bayelsa state or yobe state, will suffer. But of you allow state fuel taxes. each state can determine what it want. How do you expect a fishman in bayelsa state or a Kuno seller in Yobe state to pay the same rate as a man in the banking sector in lagos.

allow state to have state fuel taxes.

over many years nigerian have been tricked to believe that they get thier petrol or kerosene from the niger delta, that have been a trick , that information is not correct,. here are pictures of where they get their petrol or kerosene from. from the lagos sea port.



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