Understanding is a cognitive process related to an abstract or physical object, such as a person, situation, or message whereby one is able to use concepts to model that object. Keywords: PetroleumEqualizationFundNigeria Corruption Rentier State Arbitrage. This paper traces the origins ofthePetroleumEqualizationFund (PEF) inNigeria and describes the environment in which it has operated. What people call magic is, in fact, an illusion. When a magician puts a woman in a box and saws the middle ofthe box, one expects her to be sawn into two except that this does not happen. Within Nigeria, the geographical variations in the prices of these products, even with the operations ofthePetroleumEqualisationFund (PEF), remain one ofthe major challenges facing petroleum products supply in the economy. ThePetroleumEqualisationFund (PEF) was established by Decree No. 9 of 1975 (as amended by Decree No. It came into being to address incidences of long queues experienced nationwide due to frequent shortages of petroleum products. But the author ofthe book entitled: The Global Economic recession and the Human Condition: The African Perspective, According to Uchenna Chinaka, “the concept of subsidy is not unique to Nigeria, because farmers in Europe and America enjoy subsidies to date.
