http://www.economist.com/node/21543199
Nigeria sits on one of the biggest oil reserves in the world, which is basically the only thing that keeps them on the map. In the past, the Nigerian government has funded a fuel subsidy to keep prices low. But this subsidy has put the brakes on new infrastructure projects and a fueled a fuel mafia. While most Nigerians do not own cars or generators, the subsidy cut has raised prices on everything: bus fares, food, and almost everything else.
Since the announcement that the government was going to cancel the subsidy, protests have swept the nation. Nigerians are protesting the rise in fuel prices that will help them in the long run, make things extremely difficult in the present. In response to the protests, President Jonathan has revoked his former statement and has promised instead a partial subsidy to cover a little more than half. While this has quelled protests for now, Nigeria still has a long way to go to balance their mafia problems and citizens requests.
Perhaps if Nigeria could find a way to compensate for the subsidy price in a new corporate oil tax, they could abolish the subsidy and have money leftover to improve their countries infrastructure and well-being.
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