Opinion
Averting More Hardship On Nigerians
Barring any last minute intervention, Nigerian workers under the aegis of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), will on Tuesday, October 3, down tools over the federal government’s failure to address excruciating suffering and socioeconomic hardships across the country, occasioned by the removal of subsidy on Premium Motor Spirit (PMS), commonly known as petrol. Concerns have been raised over the frequency of labour strikes in the country and the fact that the previous strikes and protests hardly yield any positive results. Some people have observed that strike has become an easy way for the labour leaders to enrich themselves as they would suspend the strike as soon as the government greased their palms and left the workers, their followers to their fate.
Despite these, one would want to believe that the labour leaders cannot afford to dash the hope of millions of the citizens who look up to the labour unions to compel the authorities to sit up and take the necessary measures to bring the country and the citizens out of the current economic quagmire. A public analyst described Nigerians as “very nice and understanding people”. Perhaps that explains the quietness in the land, that despite the excruciating hardship, exacerbated by the floating of the Naira, removal of fuel subsidy and other economic policy so far put in place by the current government Nigerians – the poor, the middle class, the elite have remained cold. The youths are busy watching “Big Brother Naija” and seem to care little if the country is sinking or not.
So, Joe Ajero of the NLC and Alex Osifo of the TUC must restore the peoples’ trust and confidence in the unions, stand with the people and ensure that the strike yields positive results before it is called off. It has been four months since the unwanted pronouncement “fuel subsidy is gone” which has thrown the country into a severe energy crisis, ruptured the economy and made life hellish for the masses. Yet all the palliative measures promised by the federal government to cushion the effect of the removal are hardly seen. The buses to facilitate movement of government workers and other citizens are not there. The food items said to have been given to states to be distributed to the citizens are not within the reach of non-members of the ruling political parties in the states.
The free fall of Naira is unimaginable. It has passed the N1,000 rate against a dollar and there is no assurance that it will not get N1500 per dollar before the end of the year. Zimbabwe here we come. What about the scarcity of forex? People now pass through trauma getting foreign currencies to do their business, pay school fees, hospital bills and all that. One logical argument is that Nigeria’s woes predate Tinubu’s administration. That is a fact. But another undisputed fact is that Tinubu’s policies have worsened the situation. It is also true that the reason for having people in charge of institutions or entities is for them to direct the affairs of such bodies unto greatness and solve the problems that may arise.
Right from the time the debate on fuel subsidy removal was raging, some experts had warned that any policies that will throw the country into an energy crisis would have a devastating effect on the nation since everything in the country revolves around crude oil/ energy but little attention was paid to them. Nigerians rather believed the side of the story that stated that the cost of maintaining the subsidy was putting a serious strain on the country’s budget, and that removing the subsidy could free up funds for other critical sectors, such as healthcare, education, and infrastructure. Today, the country knows better. Has it not dawn on all and sundry that reliable and affordable energy is essential for the development of the country and well-being of citizens; that  stable and secure energy supply is essential for economic activities, industrial production, and the functioning of critical infrastructure in the country;  that fluctuations in energy availability or price volatility can directly impact Nigeria’s economic stability and that energy disruptions can lead to production slowdowns, increased costs, and economic downturns?
Therefore, the sooner the subsidy removal policy and the likes are reviewed with the aim of reversing the unworkable ones or introducing policies to stabilise things in the country, the better. The leadership of the country just has to find a way around these issues. It is a quality of good leadership not weakness to backtrack when a policy is not working or is causing more harm than good. And what better solution is needed at this precarious time than making the nation’s refineries functional. This has become the song of many concerned Nigerians including the labour unions.  The refineries should be made to work as quickly as possible and new ones built so that the exportation of crude only to bring it back as a refined product must stop. In the international market crude oil is getting to $100 per barrel. Nigeria should be happy about it just like other oil producing countries instead of facing increasing hardship internally.
The current administration must do everything possible to meet the demands of the workers so that the proposed indefinite strike does not shut down the system. President Tinubu should personally meet with labour leaders and tell them the truth about the state of the nation and the measures he intends to take to pull the country out of the woods. In the past few days, the presidency has fed Nigerians with many lies – Tinubu is the first African leader to ring the National Association of Securities Dealers Automated Quotations (NASDAQ) bell, the United Arab Emirate (UAE) has lifted the visa ban on Nigeria and all that. Only for them to retract the information and say they were not true. Too bad. Government for once, should be open to the citizens. As noted earlier, Nigerians have the reputation of being good and understanding citizens. If they know the truth and see the sincerity of the leaders to make things right, they will be willing to tighten their belts for the betterment of the country.
But let the leaders both the president, the vice president, governors and their deputies, federal and state lawmakers, ministers and all those in government lead by example. You cannot tell the people to tighten their belts when they see you every time you loosen yours. The cost of governance and the cost of opulence in government must be reduced. As a matter of fact, many people had expected Tinubu to pick up Steve Orosanya’s report and merge some ministries, agencies and departments and have a lean and workable government. But the contrary is what we see. He has exceeded the constitutional requirement of 36 ministers. We now have 48 ministers and still counting with numerous Special Assistants, advisers and the likes. Must everybody be in government at the same time? If the system is working, political appointments and politics will not be seen as the ultimate because people will profit from any other thing they do.
To whom much is given, much is expected. The position of Tinubu as the president has just been further solidified by the presidential election petition  tribunal. He has gone to the United Nations General Assembly and other countries to woo investors to Nigeria. It is time for him to sit down and draw a clear, workable roadmap on how to deal with the numerous challenges in the country so that investors will find the country attractive. The issue of corruption and insecurity across the country, economic hardship must top the list. All the states in the country have their unique endowments. It is time for the state governors to maximise these potentials so as to raise the economy of their domain instead of some of them folding their hands and waiting for monthly federal allocations. The states must be the drivers of Nigeria’s economy as it is seen in many countries of the world. It is said that he that seeks equity must come to equity with clean hands. Nigeria cannot be good as desired if all Nigerians at our various spheres of influence do not shun corruption and imbibe integrity. Patience and understanding are also required from the citizens knowing that what has taken a long time to destroy cannot be restored in a day.
By: Calista Ezeaku
Opinion
A Renewing Optimism For Naira
 
														Opinion
Don’t Kill Tam David-West
 
														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
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