I am trying to match the word subsidy with the price of fuel (N65) and the increase (N141). I am not an economist, but simple maths tells me that an increase of N76 was made between the prices. This means we were apparently buying fuel way below the supposed cost. Really?
As an oil producing country, we should be the first priority for our own oil. A farmer who produces garri should never have to buy garri to feed his family. So then, Nigeria produces enough oil enough for domestic consumption and export. Therefore, Nigeria should not be expected to pay the same price for oil as a non-oil producing state. NEVER.
Let us try to trace it back to the production line;
Crude is gotten free from Nigerian ground. So what Nigerians should pay for fuel should actually be the cost of refining, transport and other minor costs.
However, we do not have refineries working at full capacity due to sabotage. So we have to import refined fuel for consumption. But we have CRUDE in abundance. Now this is where the ojoro(scam) of subsidy comes in.
If Nigeria has crude oil, but wants refined oil, why cant we simply strike a deal with a nation with refined oil to supply them crude for refined. This barter strategy will cost us a little more, in terms of transportation and the cost difference between crude and refined.
Moreover, our refineries should be a part of national security and be working at all times. Thus we do not need to 'import' refined fuel. We can get it by barter.
If that is the case, then Nigerians will be hard-shelled against the market price of fuel pending the elusive repair of our refineries. I do not know if our government ever thought of this and what the cons will be. However it is almost very foolish to 'import' oil like other countries. It is more like a major cake manufacturer who does not have icings. Instead of paying for the market price for a cake with icing, the company can pay the most minimal amount in a barter deal with a company who specialises in icing cakes.
This post is solely a lame-man's reasoning and I am willing to be educated by those who really have other alternatives.