Opinion
ASUP: Doing The Needful
When the dispute
between the federal government and the Academic Staff Union of Universities, (ASUU) was resolved late last year, which resulted in the calling-off of the five-month old industrial action the union embarked upon, many Nigerians thought the problem that plagued tertiary education in the country had been put to rest finally.
They were mistaken. The respite was only for university students. Polytechnic lecturers embarked upon a similar action as the dispute between ASUU and the federal government was about to be resolved.
Polytechnic lecturers under the aegis of Academic Staff Union of Polytechnics, ASUP, have been on industrial action in the last three or four months, since efforts to resolve their differences with the federal government have proved abortive.
As a step towards resolving the issue, the federal government had, in one of the meetings held with the striking polytechnic lecturers, agreed to pay N20.4 billion to offset what the lecturers were being owed which emanated from their new Salary Structure, that is, the Consolidated Tertiary Institution Salary Structure, CONTISS, which is one of the demands made by the teachers.
If what the Supervising Minister of Education, Mr Nyesom Wike, revealed that the N20.4 billion had been approved by the government and also included in this year’s budget is anything to go by, then there should be hope for an end to the strike. What has to be done now is for both parties to agree on the modalities of the payment, and that does not call for delay.
However, with such move by the government, one had expected that the strike should have been called off long ago. That appears to be in the realm of speculation as the lecturers are insisting on continuing with the strike on the grounds that the federal government only agreed to meet three out of the four issues they raised.
According to sources, the four issues include: setting up of a Needs Assessment Committee for the polytechnics; implementation of the CONTISS salary structure and the constitution of governing councils of six federal polytechnics. They also agreed that government should release a white paper on the visitation of polytechnics across the country.
What appears to be playing out in the strike is the lack of trust by the lecturers in the government. If government has truly met three out of the four demands, I don’t see any reason why the industrial action should not be called off if the lecturers truly trust the government.
Since the federal government has admitted that it was working on the white paper which is the fourth demand that remains unmet, they should expedite action on it. After all, what does it take to produce a white paper if commitment is employed into it?
Contrary to the views expressed by some Nigerians that lecturers in tertiary institutions in the country embark on frequent strike actions for selfish reasons, I think it has to do with government’s poor approach to the welfare of lecturers and inadequate financing of the tertiary institutions we have. Lecturers always declare industrial action in order to strengthen and improve the quality of education in the country.
This is why the demands of the polytechnic lecturers should be met as quickly as possible. They have to be given what they want by fully implementing the agreement. Whenever education matters are brought before the government, they are met with cold shoulders. Since the only language the government understands is strike, labour unions quickly resort to one in order to get prompt attention.
Everything must be done to end the strike action by polytechnic lecturers, at least for the sake of the students who have spent more than three months outside the campus. Things have not been easy for the students as well. Apart from their distorted academic calendar, some of them actually feel uncomfortable staying away from the classroom.
Like some of their university counterparts who perpetrated crimes when ASUU was on strike, polytechnic students are likely to do the same if the strike action is prolonged unnecessarily.
Strikes have become so rampant in the education sector, especially in tertiary institutions, that education is fast losing value in a way that seems irreversible. No nation can develop in the face of this development.
Therefore, the government has to open fresh dialogue with the striking polytechnic teachers. This is not the time for grand standing and rhetoric. The Education Minister must swing into action and do the needful to arrest the situation before it deteriorates.
Arnold Alalibo
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Opinion
Fuel Subsidy Removal and the Economic Implications for Nigerians
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
