Beyond Subsidy Removal: 4 Critical Areas Nigeria Must Invest In Now -By Ismaheel Taofeeq Adisa

You’ve felt the pinch at the fuel pumps recently, haven’t you? The long-awaited removal of fuel subsidies in Nigeria has finally happened. While the cost of living has increased, the government argues this policy shift is critical for the economy. But what next? Simply removing subsidies isn’t enough. The government needs to invest in initiatives that directly impact people’s lives to make this bitter pill easier to swallow. Here are four critical areas the government should prioritize investment in now that the subsidy savings are available:

Invest in Infrastructure

The removal of fuel subsidies is a step in the right direction, but the government must now double down on investments that will cushion the impact on citizens and support economic growth.

First, infrastructure like roads, railways, and ports are in dire need of upgrade and expansion. Improved infrastructure will make it easier and cheaper to transport goods and people across the country, reducing costs of living and doing business. The government should prioritize completing stalled road and rail projects and dedicate funding to new infrastructure development.

Electricity generation and distribution also require significant investment. Unreliable power supply severely hampers businesses and daily life. The government should increase investment in solar and wind energy which Nigeria has in abundance, as well as upgrading transmission infrastructure to reduce wastage.

Next, spending on healthcare and education must increase. A healthy, skilled populace is essential for productivity and economic progress. The government should recruit and train more doctors and teachers, and invest in facilities, equipment, and education programs especially in rural areas.

Finally, programs that support small businesses and job creation should be expanded. The majority of Nigerians earn a living from small informal businesses and the MSME sector. The government should increase funding for skills training, business advisory services, and access to credit for small business owners and new entrepreneurs.

With strategic investments in these four critical areas, Nigeria can overcome the short-term pains of subsidy removal and position itself for sustainable growth and prosperity. The time for action is now.

Support Small Businesses

The federal government recently removed subsidies on petroleum products, leading to price hikes that will impact small businesses. To cushion the effect, the government should prioritize supporting these small businesses in the following ways:

Provide tax breaks and incentives. Giving small businesses tax credits, deductions, and rebates can help offset costs from higher fuel prices. This may encourage business growth and job creation.

Increase access to funding. The government should expand funding opportunities like low-interest loans, grants, and matching funds for small businesses. This can help them invest in more energy-efficient technology and operations to lower costs.

Cut red tape. Streamlining regulations and bureaucratic processes for small businesses can save them time and money that they now have to spend on more expensive supplies and transportation. Minimizing paperwork and simplifying application processes are easy steps the government can take.

Improve infrastructure. Upgrading infrastructure like roads, bridges, ports, and the power grid will facilitate the movement of goods and reduce waste, allowing small businesses to operate more efficiently. Reliable infrastructure is also attractive to investors and can boost the overall economy.

Supporting small businesses through targeted policy and funding is crucial for economic growth in Nigeria. By prioritizing tax incentives, access to capital, reduced regulations, and improved infrastructure, the government can empower small businesses to overcome challenges from the subsidy removal and continue driving development across the country. Focusing on these four critical areas will pave the way for a more robust and vibrant small business sector.

Improve Healthcare

With the subsidy removal, the government now has more funds to invest in critical areas like healthcare. Nigeria’s healthcare system is in dire need of improvement to provide citizens with basic care.

Improve Access to Healthcare

Make healthcare more accessible to the average Nigerian. This could include building more primary healthcare centers, especially in rural areas, and ensuring they are properly staffed and equipped. Provide free or low-cost care and medications for common illnesses. Expand health insurance programs to cover more citizens.

Invest in Medical Training

There is a shortage of doctors and nurses in Nigeria. The government should increase funding for medical schools and nursing programs to train more healthcare professionals. They should also provide scholarships and loan forgiveness programs to make these careers more attractive. Continuously educating current doctors and nurses is also important to keep their knowledge and skills up to date.

Focus on Preventative Care

Rather than only treating illnesses, focus on preventing them in the first place through education and access to resources like vaccines, prenatal care, and health screenings. Educate people on hygiene, nutrition, exercise, and other healthy behaviors. Make vaccinations and checkups for health conditions like high blood pressure or diabetes easily available and affordable. These steps can help reduce costs over the long run by stopping health issues before they start or catch them early on.

Improve Emergency Response Services

Nigeria’s emergency response infrastructure needs significant improvement. Invest in new emergency vehicles, training for paramedics and EMTs, and an expanded emergency call center. Work to reduce emergency response times across the country through improved roads and more strategically placed emergency hubs. Quick access to emergency care can save lives in crisis situations.

With targeted investments in these critical areas, Nigeria can build a healthcare system that supports the health and well-being of all its citizens. An improved system will lead to a happier, more productive population that powers further growth and development.

Focus on Education

The removal of fuel subsidies is a bitter pill to swallow, but a necessary step towards economic reform. While the government works to cushion the effect on citizens, focus should also be placed on critical areas that will drive growth and opportunity in the long run.

Education

Education is the bedrock of any society and a prerequisite for meaningful development. Nigeria’s education sector needs urgent intervention at all levels. At the primary and secondary levels, more investment is needed in infrastructure, learning materials, and teacher training. This will ensure students have a solid foundation to reach their full potential.

For higher education, funding should be increased for STEM fields like engineering, computer science, and medicine. These skills are in high demand and can spur innovation. Scholarship and exchange programs should also be expanded to give students exposure to new ideas.

Vocational and skills training programs should be prioritized for youth and adults. Programs in areas like renewable energy, agriculture, and information technology can equip people with practical skills to gain employment or start businesses.

Lifelong learning should be encouraged through public libraries, online courses, and community education centers. This will help workers gain new skills to adapt to changes in the economy and labor market.

To fast track development, education must be seen as an investment, not an expense. Increased funding, improved infrastructure, teacher training, and relevant curricula can help transform Nigeria’s education sector into one that nourishes talent and fuels progress. The benefits will reverberate across all sectors of the economy for generations to come.

Increase Security and Tackle Corruption

The government has taken the difficult but necessary step to remove fuel subsidies. While the impact may be felt across the economy, there are critical areas the government should invest in now to cushion the effect.

Increase Security and Tackle Corruption

With increasing revenue from fuel sales, the government must prioritize improving security and fighting corruption. Insecurity and corruption have been huge drags on Nigeria’s economy, costing the country billions each year.

By investing in advanced security equipment, training programs, and increasing the number of personnel in security agencies like the police and military, the government can better tackle threats like terrorism, kidnapping, armed robbery and other crimes. This will make citizens and businesses feel safer to go about their activities, which boosts economic growth.

Corruption at all levels of government also needs to be addressed through transparent processes, strict consequences and incentives for accountability. Recovering stolen funds and ensuring they are utilized for critical infrastructure and social programs will increase trust in the system.

The government should also simplify bureaucratic processes that enable corruption like obtaining licenses or permits. Digitizing more government services and records will increase transparency and reduce human interaction where bribes and kickbacks often occur.

With improved security and reduced corruption, Nigeria can attract more foreign direct investment, create a more business-friendly environment for companies and give citizens hope for continued progress. The fuel subsidy removal is a chance for Nigeria to shore up security, fight corruption and advance into a new phase of ethical governance and economic growth. By investing in these key areas, the government can show its commitment to lasting change that benefits all Nigerians.

Conclusion

So there you have it, four areas Nigeria absolutely must invest in now that the fuel subsidy removal means more money in the coffers. Education, healthcare, infrastructure, and job creation are non-negotiables if the government wants to soften the impact on citizens’ wallets and position the country for a better future. Pour funds into these critical sectors and Nigeria will start to see real progress. Keep ignoring them, and, well, you know how that story ends. The money saved from cutting the subsidy won’t last forever. The time for action is now. What’s the plan, policymakers? The 200 million citizens of Nigeria are waiting.