Fuel Subsidy Removal: Nigerians Face The Consequences While The Political Elite Reap The Benefits
By
Taoreed Abdullahi
Many discussions have centred on whether the fuel subsidy should be reinstated or kept. Who actually gains from the government’s decision to remove subsidies on fuel and parts of electricity? And what are the real effects on ordinary people?
It seems that our politicians should pay closer attention to how policies impact the masses. From the government’s perspective, the decision has helped meet financial needs at different government levels. The truth is, state governments no longer owe salaries.
The government claims that with subsidy removal, state and local governments have been able to pay workers and improve infrastructure. They cite achievements like the NELFUND and the construction of roads such as the Lagos-Calabar Coastal Road and the Badagry-Sokoto Road.
However, NELFUND has also contributed to higher school fees in both state and federal institutions. This money is a loan, not a grant, so students, after gaining knowledge and degrees, will need to pay it back. The question remains: has the government created enough jobs for graduates to repay these loans?
Supporters of restoring the subsidy argue that it negatively impacts their livelihoods, making it difficult to survive. The removal has reduced Nigerians’ purchasing power, leading to increased transportation costs. Many have abandoned or sold their vehicles to cover other expenses.
From my perspective, President Bola Tinubu has managed funds well, but much of the money allocated to governors and local government chairmen has not translated into tangible improvements. It has boosted their status but failed to bring meaningful development to the grassroots, except in Lagos, where projects are visibly ongoing.
The hardship resulting from subsidy removal has been felt acutely at the grassroots level. Many are suffering—navigating society has become even more difficult for many since the policy change.
For civil servants, subsidy removal has worsened their financial strain. Although the government claims that a minimum wage of seventy thousand Naira has been implemented, it isn’t reflected adequately in their paychecks. Making ends meet requires over half of their salary, but little is done to ease these hardships.
Often, workers stay late at work to cope with the challenges, sometimes sleeping in offices or sharing vehicles with colleagues to save fuel.
Housing is unaffordable for many; a simple one-room apartment in Lagos now costs over a million Naira, while a level fourteen civil servant earns less than three hundred thousand Naira monthly. The increase in building material costs, driven by high power and transportation expenses, has pushed housing prices beyond reach, leading many to blame the government for their struggles despite working hard.
Food prices have also soared, making daily survival costly. For a family of five or six, at least ten thousand Naira a day is needed just for basic sustenance, which is increasingly difficult on a seventy-thousand-Naira salary. This surge in food prices, driven by policies, has pushed many into poverty. Since civil servants are unable to patronise small and medium enterprises, the entire economy suffers in the long run.
TAOREED ABDULLAHI WROTE FROM LAGOS
