Gavinleah:


Are you scared now. I'm prepared to buy fuel at N1000 per litre. I want to see who will cry pass between Yorubas and Igbos 🤣

10litres of fuel will be N10,000

only a kid can say these .

gfelo:
Obi wouldn't have remove subsidy without fixing the refinery.

Obi said he would remove fuel subsidy from the first day in office

4Play:
Inflation will be brutal if subsidy is removed but it has to be done. If 2 policy reforms Tinubu has suggested are implemented - subsidy removal and removal of multiple exchange rates - the immediate impact will be inflationary.

To curb inflation, the CBN will need to hike interest rates even further which will add to the economic difficulties.

At the same time, the incoming government is facing a fiscal crisis as debt expense takes up almost all of tax revenue. This will call for higher tax revenues and lower government spending. Again, these are immediately contractionary reducing economic growth in the short-term.

The government may choose to not implement any of its reforms instead and just drift aimlessly for the next few years. I think it's a problem that the APC government has its power base effectively in the North (the South West is an aberration in the South). There's not much stomach for deregulation amongst Northern politicians so it will be interesting to see how Tinubu navigates through this.

All I can say is I am glad I don't live in Nigeria.

Perfectly said and this is 2024