It is clear to all that Nigeria is presently at the edge of the precipice in terms of economic, security and food affordability. Each day, the hardship is biting very hard the situation has pushed many people to take extreme measures, even as bad as taking their own lives.
Partly the cost of living was driven by the reforms introduced by President Bola Tinubu when he took office. On the day he was sworn in almost a year ago, the president announced that the long-standing fuel subsidy would be ending.
The so-called fuel subsidy is gone which critically forced essential commodities manufacturers to increase prices to the consumers.The most recent hardship unleashed on the citizens was a hike in electricity charges.
On arguably the decisions will force more medium and small-scale factories, and shops to closedown operations whereby the citizens would lose their jobs.
All these measures have not brought any meaningful relief to millions of Nigerians who fall below the poverty line each day. The present administration’s policies have worsened the economic crisis and its worst economic crisis in a generation, leading to widespread hardship and anger. In Simple assessment of the overall, annual inflation, is now close to 30 percent – the highest figure in nearly three decades.
For decades, petroleum subsidies have been a contentious issue in Nigeria. The government provided subsidies to keep fuel prices artificially low, ostensibly to alleviate the financial burden on citizens. However, the system was rife with corruption and inefficiencies, leading to vast amounts of public funds being squandered. The present government under president Bola Tinubu made the bold decision to eliminate petroleum subsidies, arguing that it was no longer economically viable.While the move was intended to free up resources for investment in critical sectors and reduce the strain on government finances, its implementation had immediate consequences for the average Nigerian. Overnight, fuel prices skyrocketed, leading to a surge in the cost of transportation, food, and other essential goods. For low-income families already struggling to make ends meet, the subsidy removal represented a significant blow to their livelihoods.
In addition to the removal of petroleum subsidies, the Nigerian government also implemented steep hikes in electricity tariffs in a bid to address the longstanding issues plaguing the power sector. The rationale behind the tariff hikes was to attract private investment, improve infrastructure, and ultimately deliver more reliable electricity services to consumers. However, the reality has been far from the promised benefits.The electricity tariff hikes have hit the average Nigerian hard, with many unable to afford the increased cost of power. For households already grappling with sporadic power outages and inadequate service delivery, the prospect of paying more for electricity has only added insult to injury. Small businesses, which form the backbone of Nigeria’s economy, have been particularly hard hit, as the higher electricity costs eat into their already slim profit margins.
Beyond the economic implications, the removal of petroleum subsidies and electricity tariff hikes have had a profound human cost. Many Nigerians, especially those living in poverty, have been forced to make difficult choices between buying food, paying for healthcare, or accessing education. The burden falls disproportionately on the most vulnerable members of society, exacerbating inequality and widening the gap between the rich and the poor.
Moreover, the lack of adequate social safety nets means that those hardest hit by these policies have little recourse for assistance. The government’s failure to implement comprehensive support measures has left many Nigerians feeling abandoned and disillusioned with the political establishment.
To this end Nigeria’s policies regarding petroleum subsidies removal and electricity tariff hikes have had far-reaching implications for the masses. While these policies were ostensibly designed to promote fiscal sustainability and improve service delivery, their implementation has come at a significant cost to the average citizen. As Nigeria continues to grapple with these challenges, it is imperative that policymakers prioritize the needs of the people and implement measures to mitigate the adverse effects of these policies on the most vulnerable segments of society.
Aishatu Ibrahim Mato, wrote from Department of mass communication, Abubakar Tatari Ali polytechnic Bauchi. aishatuibrahimmato151@gmail. com.
