Nigeria Oil Subsidy Restored

English: The gas and diesel prices of the Chev...

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I realized I failed to post on the Occupy Nigeria Movement. And honestly its because I didn’t educate my self. When I finally sat down to do research of my own, I realized the protest are over and ever one is back at work so here’s a recap and update.

The strike began on 9 January, paralysing the country of more than 160 million people. The root cause remains fuel prices: Jonathan’s government abandoned subsidies that kept prices low on 1 January, causing prices to spike from $1.70 a gallon (45 cents a litre) to at least $3.50 a gallon (94 cents a litre). The costs of food and transportation also largely doubled in a country where most people live on less than $2 a day.

Jonathan and other government officials have argued that removing the subsidies, which are estimated to cost $8bn a year, would allow the government to spend money on badly needed public projects across Nigeria, with its cratered roads, little electricity and a lack of clean drinking water for its inhabitants. However, many remain suspicious of government as military rulers and politicians have plundered government budgets since independence from Britain in 1960.

The strike also could cut into oil production in Nigeria, which produces about 2.4m barrels of crude a day and remains a top energy supplier to the US. A major oil workers association threatened on Thursday to stop all oil production in Nigeria at midnight on Saturday over the continued impasse in negotiations. However, the Nigeria Labour Congress said the association had held off on the threatened production halt. [Full Article]

I’m glad the protest are over because it was getting really bad over there. As in people couldn’t even go outside their home to get food because people were killed for no reason. Many American citizens were stuck in Nigeria because no flights we going in or out of Lagos. I really wish the politics were not as corrupted. As the article stated, the cut of the subsidy could really help the country it the money went to the right place. I feel like Goodluck Jonathan got what he wanted in the end. The subsidy was only half way reinstated. Many say it was all a gimmick to see what would happened. Whatever the case maybe, I’m just glad the madness is over.  All we can do is pray.

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