[The Polity with Senator Reformed] The Removal of Fuel Subsidy: An Anti-People Policy — By Senator Reformed

On May 29, 2023, President Bola Tinubu, while delivering his presidential speech announced the removal of the fuel subsidy. This policy shift, with the legitimate goal of improving the economic outlook of Nigeria, has instead precipitated an economic crisis that is disproportionately affecting ordinary Nigerians. As validated by reality, the decision has proven to be an anti-people policy that continues to place severe hardship on the masses with a simultaneous effect of triggering a cascade of economic hardships across various sectors.

It is a cliche that since the removal of the fuel subsidy, petrol prices have soared to unprecedented heights, and this increase has indeed had a domino effect on the cost of goods and services, most notably the transportation sector being one of the hardest hit, as the cost of commuting has soared, making it increasingly unaffordable for many Nigerians to use public transportation. And as transport fares rise, many businesses have been forced to inflate their prices to cover the higher costs of transporting goods.

Even the deaf can hear and the blind can see clearly that one of the most alarming consequences of the subsidy removal is the escalation of food prices. Vendors, forced to pay higher transportation costs to move their goods, are left with no choice but to pass these costs onto consumers. This has developed into a significant increase in the price of foodstuffs— a development that further exacerbates hunger and food insecurity in a country where many already live below the poverty line.

It must also be established that the crisis extends beyond transportation and food prices, as Nigeria’s already unreliable electricity supply means that many households and businesses rely heavily on petrol and diesel generators. With fuel prices at an all-time high, the cost of running these generators has become prohibitive, eating into profits for businesses and straining household budgets. The high cost of fuel has forced some businesses to shut down, unable to stay afloat and sustain operations under such financial pressure.

One should be reminded that the fundamental principle of governance is that the country exists for the people, not the other way around, as the primary responsibility of the government is to protect the lives and property of its citizens, while ensuring their welfare. While economic growth is indeed important, it should not come at the expense of the very people who constitute the nation. The severe economic strain placed on Nigerians by the removal of the fuel subsidy therefore contradicts this principle, as the policy, is glaring, disproportionately burdens the most vulnerable segments of society.

The economic hardship resulting from the fuel subsidy removal is also evident in the ongoing issues surrounding the minimum wage. The current minimum wage of 33,000 Naira is grossly insufficient to meet basic needs, especially in the context of skyrocketing living costs.

Even the proposed increase falls short of addressing the real economic challenges faced by workers, as it cannot cover the price of a bag of rice, which now exceeds 80,000 Naira. This inadequacy has constantly occasioned protests, with the demonstration by factory workers at Yale in Oluyole, Ibadan, demanding better living conditions, being the latest of all. And what this means is that, it highlights the dire living conditions and the growing discontent among the working class.

Since the removal of the subsidy, the purported savings have not translated into tangible benefits for the people. There has been no visible improvement in critical areas that would justify the sacrifices being demanded of the Nigerian populace. Instead, the government has resorted to distributing palliatives to states to cushion the hardships, a short-term solution that fails to address the root problem. Compounding the issue is the revelation that the Federal Government has been reportedly paying subsidy secretly, casting doubt on the sincerity of the subsidy removal. This infact raises questions about the true motives behind the policy and whether it was indeed intended to benefit the nation economically.

To therefore prevent a situation similar to the widespread protests seen in Kenya, the Nigerian government must reconsider its stance on fuel subsidy as it is not just a matter of policy; it is a moral imperative to protect the well-being of the citizens.

Recall that Tinubu himself, as a critic of the Jonathan-led administration took to the streets to protest, warning against the removal of fuel subsidy due to its adverse effects on the populace. Now, it is time for him to reconsider his stance on fuel subsidy, and listen to the growing demands and yearnings of the Nigerian people who are bearing the brunt of his anti-people economic policy. This is the ripe time for him to heed his own advice by reinstating the fuel subsidy which economic experts have adjudged to best, for now, provide immediate relief to struggling Nigerians and restore some measure of economic stability. Even the proponents of Tinubu and this current APC-led government—save some select few— are not spared from the resultant effects of this anti-people policy.

With the beauty of leadership being to truly serve the people, the government must place priority on the well-being of the people and reconsider policies that harm the most vulnerable, by aligning them with the fundamental principle that the country exists for the people, not the other way around. Tere are alternative ways to give the economy a facelift, such as combating corruption and exploring other avenues, rather than removing fuel subsidy, which has failed to yield any tangible benefits and only caused widespread hardship. This is the only way to true economic growth, stability, and a better life for all Nigerians, where the government’s primary responsibility is to protect the lives and property of its citizens, while ensuring their welfare, and where economic growth is people-centered, not people-sacrificing.

Senator Reformed writes from Ibadan Southwest Local Government.

 

 

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