Fuel Subsidy Removal: Between Economic Reform and the Suffering Masses

When President Bola Ahmed Tinubu announced the removal of fuel subsidies on May 29, 2023, it was met with both applause from international observers and anxiety from millions of Nigerians. For decades, fuel subsidy was seen as a form of relief for the average citizen—a cushion against the harsh realities of an unstable economy. But with the stroke of a speech, that era came to an end.

According to the President, the subsidy was a drain on national resources, benefiting only a few corrupt middlemen while costing the nation trillions. He argued that the funds saved would be better directed to infrastructure, healthcare, education, and job creation. On paper, the logic was sound. Nigeria could no longer afford to burn billions on subsidies while borrowing to fund basic governance. But in practice, the policy shift triggered a wave of suffering that continues to sweep through the nation.

Within days, petrol prices soared from under ?200 per litre to over ?600 in many states. The domino effect was immediate. Transportation fares tripled. Food prices skyrocketed. Small businesses that depended on petrol to power generators began shutting down or laying off workers. The informal sector—where most Nigerians earn their daily bread—suffered the most. A market woman in Port Harcourt lamented, “Before, I could go to the market with ?5,000 and come back with food for my children. Now, ?5,000 is barely enough for rice and oil.”

The organized labour, through the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), staged protests and threatened nationwide strikes. Their message was simple: Nigerians cannot breathe. While the government urged patience and promised palliatives, many citizens saw these as too little, too slow, and poorly distributed.

To cushion the effects, the federal government announced ?5 billion grants to each state and promised the rollout of Compressed Natural Gas (CNG) buses and direct cash transfers to vulnerable households. Yet, the impact of these measures has been marginal at best. Questions remain about the transparency of distribution and the long-term sustainability of such palliatives.

Critics argue that a phased removal of the subsidy, coupled with improvements in local refining and a crackdown on oil sector corruption, would have reduced the shock. Nigeria, after all, is an oil-producing nation still importing refined petrol—a paradox that continues to baffle the populace.

The pain is real, and the people are tired. But this moment also presents an opportunity: to reset the nation’s economy on a path of transparency and self-reliance. For that to happen, the government must do more than issue promises. It must act—quickly, wisely, and with compassion.

Until then, Nigerians will keep asking: must economic reform always come at the cost of the poor?

By: Comrade Sundrix Ogor, International human rights commission IHRC SMM, MEMBER 

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