Nigeria don enter new economic reality since the federal government remove the fuel subsidy. This decision, wey President Bola Tinubu announce for his inaugural speech, don cause sharp rise in petrol prices and inflation. Petrol prices don rise to between N998 and N1,030 per litre in different parts of the country, including Abuja and Lagos.
The removal of the subsidy has led to a significant increase in the cost of living. Inflation don reach 32.7 per cent, and many Nigerians no fit afford essential items again. Businesses, especially Micro, Small and Medium Enterprises (MSMEs), dey face increased operational costs which might lead to reduced profit margins and job cuts. The Nigerian Association of Chambers of Commerce Industry Mines and Agriculture (NACCIMA) say the new petrol prices go stifle many small businesses out of operation.
Experts and business leaders like Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprises (CPPE) and Mr. Adewale-Smatt Oyerinde of the Nigeria Employers’ Consultative Association (NECA) dey criticize the timing of the subsidy removal. Dem say the decision no consider the difficult economic conditions wey Nigerians dey face. Dem urge the government to think about social, economic, and political implications before making such policy choices.
The government say the removal of the subsidy go allow the oil sector to function independently, with prices reflecting the true cost of production. But for now, Nigerians dey struggle with the immediate effects. Fuel queues dey everywhere, and people dey find it hard to get petrol. The government also introduce some interventions, but dem no effective due to high exchange rate and other economic challenges.
Former Minister of Police Affairs, Humphrey Abba, describe the current situation as ‘hardship pro max.’ He say the government’s economic policies only aggravate poverty and inflation, making it hard for many Nigerians to survive. He and other critics urge the government to reconsider their policies and find a balance between reducing fiscal deficit and ensuring citizens no plunge deeper into poverty.
