Meanwhile, the World Bank has advised the Federal Government to remove the subsidy on fuel in order to save Nigeria the trouble of devoting nearly half of its annual budget to funding the fuel importation scheme. The issue of subsidy removal has taken a centre stage in Nigeria’s economic discourse in the last five years.
It has also assumed the dimension of a political tool and campaign instrument in the hands of politicians. An independent audit conducted by the Nigeria Extractive Industry Transparency Initiative ( NEITI) showed that over N4 trillion was paid to petroleum product marketers as subsidy from 2006-2012. The breakdown of the payments showed that N2.197billion was paid as subsidy in 2006, N236.64billion in 2007 and N360.1 billion in 2008.