Controversial policies of President Bola Tinubu, including removal of petroleum subsidy and electricity tariff hikes are making the masses to groan under serious economic strain.
While these policies were purportedly aimed at promoting fiscal sustainability and economic growth, their implementation has sparked widespread debate and raised concerns about their impact on the people.
It is clear to all that Nigeria is presently at the edge of the precipice in terms of economic downturn, insecurity and inability of the citizens to buy food. Each day, the hardship is biting harder and the situation has pushed many people to take extreme measures, including taking their own lives.
Partly, the high cost of living in the country is 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, which immediately forced essential commodities manufacturers to increase prices of their products beyond the reach of the masses. The most recent hardship unleashed on the citizens is a hike in electricity charges.
Unarguably the decisions will force more medium and smalls-scale factories and shops to close down operations and the workers would lose their jobs.
All these policies 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 situation in the country, leading to widespread hardship and anger. In simple assessment of the terrible situation, the inflation rate is now close to 30 per cent – the highest in nearly 30 years.
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 amount of public funds being squandered. The present government under 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 has 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 essentially 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 outage 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 hit hard, as the higher electricity costs eat into their already slim profit margins.
The removal of petroleum subsidy and the hike in electricity tariff have forced millions of Nigerians into poverty. Others are being 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 hope for assistance. The government’s failure to implement comprehensive support measures has left many Nigerians feeling abandoned and disillusioned with the political establishment.
Though these policies were ostensibly designed to promote fiscal sustainability and improve service delivery, their implementation has come at a very unfortunate 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 the society.
Mato wrote from Department of Mass Communication, Abubakar Tatari Ali Polytechnic, Bauchi. He can be reached via: aishatuibrahimmato151@gmail. com.
