Removal of fuel subsidy plunges Nigeria into more economic hardship

By Nonso David in Abuja

Nigerians are yet to recover from the naira and fuel scarcity that rendered the economy weak, prior to and after the February 25, 2023, presidential elections.

As citizens in the Federal Republic are trying to pick up their broken pieces of life after months of hardship. The Nigerian government dived into full implementation of the fuel subsidy removal.

Just a day after his inauguration as the 16th President of Nigeria, filling stations increased the prices from 194 Naira in Abuja to 540 Naira, while other States now sell at almost the same price but a difference of a few Naira.

Bola Ahmed Tinubu, the new president, in his speech, recognized that the subsidy has been removed. “Subsidy is gone,” he said.

This statement alone pushed filling station owners and managers to immediately implement the new prices.

During a retreat for the National Assembly members-elect and other positions for the opposition party, PDP, Peoples Democratic Party, Atiku Abubakar, the February 25, 2023, candidate who came second, said, “I would have provided palliatives before subsidy removal”

Nigerians have been reacting to the almost tripled prices of petrol with some cursing those who voted for the All Progressive Congress, APC, candidate Tinubu.

His election is being contested by the Labor Party and PDP.

On May 10, 2023, Cool FM reported that ‘the Federal Government announced that as part of its subsidy palliative measures, it has received an $800 million World Bank grant targeting 50 million vulnerable Nigerians or 10 million households.’ It is not yet clear how these palliatives will be handled by the new regime.

The newly elected Vice President, Kashim Shettima, said the subsidy removal is a well-calculated plan by their regime to stop the scams perpetrated by people of the upper class. he added that they are well prepared for any resistance.

Nigerian react

Reactions on and off social media have been massive with many cursing the few days old Tinubu government. While others think that the subsidy removal is justice done to those who used to sit on their money, others think that this will plunge Nigeria into an irreparable economic quagmire.

“If we put politics aside and analyze the policy very well and we will understand the benefits and positive effects the policy would have on the economy and development and prosperity of Nigeria and Nigerians in the future. But the only problem is that the government must be very friendly and brotherly with the masses (Nigerians) interns of implementation of policies and timing (durations).  I am very optimistic and strongly believed that Nigeria will be a great country in the future because the government is going to recover very important quantities (millions of litters) of petroleum products and discourage smuggling because most dealers would prefer to buy directly from NNPC because the unification of the price (unique price) will kill and discouraged the black market in the future,” a concerned Nigerian said.

Another said the subsidy claims be investigated and those who filled their pockets with government money, arrested, “Oil subsidy is deliberate stealing after all. Ñigerians call for a comprehensive investigation into the oil subsidy issue with a view to exposing and punishing the perpetrators of this monumental stealing.”

“This wouldn’t have been a topic to discuss today if only the so-called No 1 of today had not ganged up against it over a decade ago, the suffering coming with it then would have easily been cushioned because there was a lot of money in circulation then, but now that an average Nigerians are struggling with just one square meal per day,”

Workers to go on strike

Members of the Nigerian Labour Congress, NLC, and the Amalgamated Union of public corporations, civil service technical and recreational services employees have said they will withdraw their services from Wednesday, June 7, 2023.

The nationwide strike action is aimed at pushing the Nigerian Government and the Nigerian National Petroleum Company, NNPC, to withdraw the new prices which they describe as “illegal”