Posted by Many Nigerians didn’t expect to hear President Bola Tinubu mention the elimination of fuel subsidies during his inauguration speech on May 29, 2023. The wakeup was terrible.
Fuel stations all throughout the nation have purposely hoarded their products before the announcement for obvious reasons. Fuel prices around the nation rose by 150–200 percent right away after the announcement. Many people are angry, which was to be expected.
Despite the fact that this problem is rife with controversy, the Federal government has attempted to address it before. Although the Goodluck Jonathan administration attempted to end the fuel subsidy, it’s possible that it lacked the political will and bravery to do so. Nigeria used to get monthly fuel subsidy payments in the neighborhood of $400 billion Naira. But this monster has finally been vanquished.
The withdrawal of subsidies, according to widespread opinion, will aid in putting a stop to the theft, smuggling, and siphoning of Nigeria’s Premium Motor Spirit (PMS) to other nations on the African continent. The nation suffers economically as a result of the ongoing thievery and illegal commerce along the borders, leaving the entire populace in absolute poverty.
The Federal government emphasizes that its current action in withdrawing the subsidy will have a good impact on people’s lives, even though Nigerians are finding it difficult to predict where their economic tide will swing. The funds that would have gone to a small number of people will be used to fund public services including healthcare, education, and infrastructure projects.
Stakeholders, public analysts, and the government are of the opinion that while this approach may be challenging at first, Nigeria’s economy would improve as the petroleum sector, which had previously been seriously monopolized, will be released from the clutches of the shylocks. Products will be easy to obtain.
People are quick to counter that the economy is also suffering from the massive overhead and heavy load of governance, in addition to fuel theft and the subsidy cabal. The fate of the average person still rests in the balance despite all economic twists and turns.
Unfortunately, the majority of Nigerians are not being included in the entire process. There are conflicting views due to obvious factors. While supporters of the strategy are willing to wait patiently to see how the situation plays out, others are unsure about the government’s goals and intentions.
Adversity, New Horizons
For the entire population, these are undoubtedly difficult times. The cost of basic necessities like food, services, and hygiene is rising beyond the reach of the average Nigerian. The cost of living has skyrocketed. Three square meals are no longer affordable for many individuals. Food products that were once staples and certain necessities are now considered luxury. The cost of public transportation has greatly increased.
The nation has the highest inflation rates on record. Although these harsh economic realities will undoubtedly become a part of people’s life, survival and adaptation are the buzzwords on many Nigerians’ lips.
Their adaptability and toughness have been further strained. These trying times are a simulation of COVID-19 in 2020. Adjustment is the ‘New Normal’. You must let go of what you cannot afford to keep.
People are adjusting to a new way of life across the country. Lagos inhabitants are ready to reduce the excesses of luxurious travel between locations. Only things that are extremely important are now given priority. Only very crucial locations are accessible to you. Others have turned to working from home after realizing that it is more productive to work from home. Some people journey vast distances to reduce the costs of commuting to and from work and from different destinations every day.
Bicycles, motorbikes, and tricycles are now frequently seen on the highways as alternative modes of mobility. Nowadays, it’s common for automobile owners to park their cars in a neighborhood that they feel safe in, then take the bus or train to their place of employment or company.
“New Normal”
Some state governments, such as those in Edo and Kwara States, have developed initiatives and plans to lessen the impact of the current challenges and the high energy costs that their inhabitants are now experiencing as a result of the loss of gasoline subsidies.
The governor of Edo State declared last week that the official workweek for civil personnel will be cut from five to three days.
Two days a week will now see employees working remotely. Gov. Godwin Obaseki stated that his administration will support the residents of Edo State and make every effort to lessen their hardship.
In addition, since their commute to school will be shortened, the government is also concerned about the misery of parents, teachers, and students. To save the cost of travel for parents, teachers, and students, the government is advancing the EdoBEST@Home plan to build additional virtual classrooms. In the coming days, the Edo SUBEB will give further information about this program.
In a same spirit, Kwara State’s civil officials last week celebrated the governor’s announcement that they would only be working three days each week. All of them represent the new normal and adaptations to the present circumstances.
Governor AbdulRazaq has also approved the deployment of government buses to support transportation of students and employees in public tertiary institutions within the Ilorin metropolis and its environs, in addition to the lowering of the official working days for civil personnel. The Kwara State administration is implementing two phases of efforts to mitigate the negative effects of high energy implications on the populace.
In the face of Nigeria’s transition to the post-fuel subsidy regime, the government stated that it will continue to provide immediate assistance for the people of Kwara State, looking into additional ways to ameliorate the situation while fostering sustainable economic growth.
The State Universal Basic Education Board’s Malam Dauda Lawal and the Ministry of Education’s Ramat Ajia commended the Governor for his consideration in cutting back on the number of working days. They characterized the action as beneficial, humane, and a positive advancement.
The shortening of the workweek to just three days is a welcome step, according to the state chairman of the Nigeria Labour Congress, Comrade Murtala Olayinka, as it will lower the cost of transportation for government employees.
Utilizing Potential
Nigerian youth have demonstrated creativity in a variety of ways to tackle the challenges of the twenty-first century and influence the future. Numerous inventive abilities have been documented in a variety of human endeavors. It includes things like mechanical inventions, medical breakthroughs, and other things. People have been known to construct motor vehicles and even airplanes out of scrap metal. Sadly, due to a lack of an enabling environment or government assistance, these endeavors frequently fail to materialize or expand beyond the creative sphere.
In Borno state about ten months ago, a young university dropout named Mustapha Gajibo produced electric cars to the admiration of former governor Zulum, who gave him five minibuses and some financial assistance. With this accomplishment, Gajibo established itself as the first automaker in Nigeria and Africa. According to an article in Leadership Newspaper, the young entrepreneur who founded this business in 2017 also manufactures locally built generator sets and tricycles.
A few days ago, a video of a young Nigerian man who had successfully switched a fuel-powered generator to use cooking gas was all over the internet.
A 2kg cylinder of gas would run the generator for 12 hours, the man (@kingsolya) said.
This is a clarion call for the government to unlock these potentials, harvest the inherent benefits, and shake-off shackles of technological weakness in order to fight the current challenges caused by the elimination of subsidies and the pursuit of renewable energy.
Reduce the exorbitant cost of government.
The Nigerian people have always been forced to pay for government policies. From arbitrary tax increases to excessive transportation costs, everything that the market indicates is true. The victims are frequently the people.
The strategy of eliminating fuel subsidies is here to stay, whether we like it or not. Whether the government uses the money to improve infrastructure for the benefit of the populace is quite different, and whether there is a policy policy summersault is likewise a topic for another day. No prior government in Nigeria has ever had the political guts to lower the enormous burden of spending associated with the bourgeois size of official portfolios, leaving the economic ramifications at the taxpayers’ doorsteps.
As a result, the federal government’s recurrent expenses have increased by more than 400% in the past nine years, reaching over N8 trillion, according to the contents of the 2023 budget.
The National Assembly was given N168 billion in the budget. According to information now available, the federal government’s projected N10.4 trillion in revenue for 2023 will be significantly reduced by the cost of administering the government.
It is understandable why Dr. Akinwumi Adesina, president of the African Development Bank (AFDB), urged the Tinubu administration to examine the cost of governance critically and drastically reduce it in order to free up more resources for development during his speech at the inauguration lecture. Nigeria makes very little investment in its growth.
People’s sacrifices are being observed frequently. What will the political class and the administration pay as their own price is the question. Despite President Tinubu’s media aide Dele Alake’s assurances that the current administration would “cut down the huge cost of governance,”
Civil engineer Ekeoma Phillip, who works in Calabar, recounts how shocked locals there were recently to see a member of the newly-installed cabinet driving through the city in a convoy of approximately 12 opulent cars.
Personally, I wanted to stone them. Imagine how much fuel 12 large automobiles would consume for just one person. That’s sad. We are discussing the high cost of living and the hardships that our people are facing. It is regrettable that these politicians are so obviously heartless toward the common people. In reality, government employees should cut back on their spending. He stated, “They are slaughtering the people.
Quantity surveyor Fabian Okpambo asks: “Would the nation’s economic prosperity come at the expense of just the masses? Nigerians have been enthralled by the government’s ability to make sacrifices in order to advance the nation so far.
Are politicians and members of the government not involved in this journey? Without making sacrifices to win the fight, you cannot be a leader. We are currently in a warlike situation. To win the fight, all hands must be on deck. Our politicians need to scale back their extravagant lifestyles. Their income and benefits are sufficient to cover the wages of millions of Nigerian employees. It’s regrettable how they drain this country dry.