Wednesday, January 4, 2012

The government's side on the fuel subsidy

The BBC had a brief interview with Ahmed Ali Gulak, Special Adviser to the President on political matters. Among the more interesting talking points, the government claims that prices and protests will have calmed down within 3-4 weeks. Here's hoping it's calmed down by the time classes start!

UPDATE: BBC's interview with the central banker, Senusi, who argues that subsidies should be for production, not consumption; that they should be paid for with savings not debt (our children are paying for our consumption); and that much of Nigeria's subsidies are re-exported to other West African countries. He admits the cost of living to go up and that other prices will rise. It was not unexpected. The crash in Europe and other countries requires greater fiscal responsibility. Improvements may not be seen for 6 months-3 years.

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