Opinion
Where Are Dividends of Democracy?
Universally, democracy is defined as government of the people, by the people and for the people. It is a representative, participatory and consultative government. It is about due process, rule of law and respect for the fundamental human rights. It is about transparency, accountability and good governance.
Democracy recognizes and respects human dignity and freedom, such as freedom of speech, freedom of worship, freedom of movement and freedom of association. It is about service and not leadership. It is about welfare and well being of the people. It is about provision of social amenities such as pipe borne water, electricity supply, healthcare, education, housing, employment, food, transportation, good roads, job creation, security, and so on. All these are the fruits of democracy, common known as the dividends of democracy.
Dividends of democracy is also enjoyed when the masses who democracy assign huge responsibility of electing their representatives in the three tiers of government are allowed to exercise their responsibility and their choice respected by the so-called Godfathers and money bags. We have no portable drinking water. We still make do with untreated bore hole water and yet every year huge amount of money is budgeted for water.
Electricity is in short supply in the country. Steady supply of electricity would have been a source of joy to small scale entrepreneurs whose businesses such as tailoring, barbing, dry cleaning, hair dressing, selling of minerals and pure water depends on it. But it is painful that electricity supply has not improved for the past 10 years despite billions of dollars budgeted for it by government on yearly basis.
Nigeria has not fared better in the area of education. Some years ago, Nigerian slogan was education for all by the year 2000. Now year 2000 has come and gone, education for all is not yet in sight. We still have thousands of children who cannot find their ways to school for one reason or the other. School fees at all levels of education are expensive and in some cases unaffordable. And what is more, teachers and lecturers are not receiving better treatment from government in terms of salaries and working conditions. Indeed, our education system is in mess.
Our healthcare system is in comatose. Many hospitals have no drugs and modern equipments. There are no well qualified and experience medical personnel. Despite the efforts of NAFDAC, fake drugs from India and other countries still find their way into the country. As a results of these, many Nigerians travel abroad for medical attention.
Despite abundant human resources, vast lands and billions of naira generated from oil, Nigerian leaders have refused to invest in agriculture. This has increased the prices of food stuff and general cost of living in Nigeria, with thousand of youths roaming about the streets for lack of nothing to engage in. In fact, unemployment in the country has become the biggest problem of Nigerian youths and challenge to the federal government. Millions of Nigerian youths who graduated from various universities and other higher institutions every year are without jobs. Inability to ensure jobs and indeed reasonable paid jobs has lured many into various crimes.
It is the same sad story in the area of transportation. Rail transportation used to be cheap in those days. It is the cheapest means of transportation for the common man. But today, rail transport is completely dead. Billions of naira earmarked for its rehabilitation with Chinese firm as a contractor has developed wings. This situation is exacerbated by the deplorable condition of roads in Nigeria, particularly those in the eastern part of the country. Anybody who passes through our road would weep for Nigerians who pas through this road on daily basis. The question is: what happened to the trillions of naira that Olusegun Obasanjo’s government budgeted for this sector. Down the drain as usual?
So, where are the dividends of democracy? Unfortunately what we have as dividends of democracy in Nigeria are political thuggery, violence, militancy in the Niger Delta, public harassment and extortion, election rigging, embezzlement of public funds etc.
It is against this backdrop that I call on President Umar Musa Yar’Adua to pursue his seven-point agenda with much vigour so that by the time he would be leaving office, he would be able to boast of god legacies.
As for Rivers State, Governor Rt. Hon. Chibuike Rotimi Amaechi is doing an appreciable and commendable work, especially in the areas of roads network, education, healthcare, transportation, environmental sanitation, urban renewal and beautification. We only hope he would not be derailed by political consideration.
Prince Ike Ogbuehi
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
By: Amarachi Amaugo