With the removal of fuel subsidy, south-eastern citizens in Nigeria have been hit below the belt because transit fares have become unaffordable to the majority. The situation is so bad that few motorists are on the roads, while a larger population of commuters walk long distances to work.
Last week, Lagos state launched LAMATA electric buses which indicate that they were aware of the impending subsidy removal, hence have prepared to mitigate the effects. So the question is, why remove fuel subsidies without adequate preparation to mitigate its effects across all states of the federation Mr. President?
Is Nigeria’s new president, Armed Bola Tinubu, incentive to the plight of the citizenry? Although Nigerians have been aware that FG have been romancing the fuel subsidy and considering its removal, many never expected it to be so abruptly.
On May 27, the Guardian Nigeria wrote about the dynamics of fuel subsidy, and highlighted the challenges. The paper indicated that full deregulation of petroleum products and subsidy removal will induce inflation, heighten fuel pump prices and impose undue hardships on Nigerians.
The paper mentioned that fuel subsidy removal required adequate preparation to mitigate the harsh economic effects that bus associated with it. Preparation included government reforms like
1. Investments in public transportation infrastructure to provide affordable and accessible alternatives to commuters.
2. Fostering competition in the downstream sector of the petroleum industry to encourage more efficient and cost-effective distribution of petroleum products.
3. Promotion of renewable energy,
4. Investment in refining capacity,
5. Strengthening anti-corruption measures,
Some of these reforms should have preceded the fuel subsidy removal. For example, the Dangote refinery which was reported to commence products distribution in July, is yet to kick-start so why remove subsidy before then?
Among all the 37 states, Lagos state appears to be better prepared for subsidy removal. So, dear Mr president, “Is this unplanned subsidy removal a deliberate, calculator knock on the head.”
Scripted by Ekeoma Uchechukwu.
photo Paul Okechukwu
Published by Nwachineke Ugwu Okechukwu, Obinwannem News, 2nd June 2023
