By Meikudi Ashiat
Is the removal a relief or burden in Nigeria and on Nigerians? Does the removal of subsidy relieve Nigerians of their lingering suffering or decline their predicament?
Does the removal curb the mischievous perpetration in the administration and relieve Nigerians of their abject poverty and suffering?
These are questions many Nigerians would spew without darting an eye, the hardship accompanied by the removal of subsidy on fuel has left many Nigerians to the bleak of mystery and hardship.
Subsidy removal has always been a double-edged sword in Nigeria. Aside from the domino effect it has on the economic sector of the country, indigent Nigerians are usually the recipients of the nemesis.
In May 2023, following the resumption into office of the present administration, President Bola Tinubi announced the end of subsidy on fuel making daily consumption skyrocket their normal prices and Nigeria entered the unyielding doom of suffering.
A report by the National Bureau of Statistics (NBS) stated that the rate of food inflation in January 2024 quickened to 35.41 percent on a year-on-year basis, which was 11.10 percent points higher compared to the rate recorded in January 2023 (24.32 percent)
Apart from its ardent effect on the cost of living, the surge in fuel prices is directly affecting the costs of transportation and subsequently impacting the prices of goods and services.
Transportation is known as the lifeblood of Nigeria’s economic activities, and the livelihood of the majority of Nigerians. As fuel prices increase, the cost of transportation follows suit, resulting in a spike in the prices of essential goods. This ripple effect is especially challenging for low-income earners who allocate a significant portion of their income to necessities.
Moreover, subsidy removal on fuel contributes to inflationary pressures, making the overall economic landscape more challenging for the average Nigerian. Inflation erodes the purchasing power of consumers, making it, ennui for people to meet their basic needs. This situation becomes more pronounced for vulnerable populations, amplifying the existing socioeconomic disparities.
For decades, The Nigerian government has subsidized fuel with untold effects on people. For instance, the announcement of subsidy removal on petroleum raised a dust of protest and stiff resistance among Nigerians when then-president Goodluck Jonathan announced the end of subsidy on January 1st, 2012, Nigerians trooped out in agony decrying the laborious life of the subsidy removal. They reacted negatively toward the regression and degradation it inflamed on their life and this caused President Goodluck Jonathan to withdraw his ardent decision.
Subsidy removal also brought about mass poverty and hardship to Nigerians, the president’s decisions are hurting not only the poor but Nigerians as a whole.
In navigating the complexities of fuel subsidy removal, the Nigerian government must implement accompanying measures to protect the vulnerable segments of society. Social safety nets, targeted subsidies for essential commodities, and initiatives to bolster small and medium-sized enterprises can help cushion the impact on the masses.