SUBSIDY: Tinubu Govt Putting Cart Before Horse – Motorists, Activists Lament

The removal of fuel subsidy has had an adverse effect on businesses, particularly small businesses that depend on petrol or diesel to power their generators, and the increase in the cost of fuel has led to an increase in the cost of production.

Overall, the removal of fuel subsidy and its attendant negative impact on the lives of many Nigerians has been phenomenal, hence there have been urgent calls on the government to find a way to alleviate the hardship faced by the citizens, especially the vulnerable members of society.

Amid the removal of subsidy on petrol, Nigeria’s inflation rate rose to 22.41 per cent in May 2023, up from 22.22 percent in April 2023. This is according to the May inflation data contained in the latest Consumer Price Index (CPI) report released on Friday by the National Bureau of Statistics (NBS). The CPI measures the rate of change in prices of goods and services.

The report stated that the May 2023 inflation rate showed an increase of 0.19% points when compared to April 2023 headline inflation rate. “Similarly, on a year-on-year basis, the headline inflation rate was 4.70% points higher compared to the rate recorded in May 2022, which was (17.71%). This shows that the headline inflation rate (year-onyear basis) increased in May 2023 when compared to the same month in the preceding year.

“Likewise, on a month-on-month basis, the headline inflation rate in May 2023 was 1.94%, which was 0.03% higher than the rate recorded in April 2023 (1.91%). This means that in May 2023, on average, the general price level was 0.03% higher relative to April 2023,” according to the NBS.

The report also disclosed that the percentage change in the average CPI for the twelve months ending May 2023 over the average of the CPI for the previous twelve months period was 21.20%, showing a 4.75% increase compared to 16.45% recorded in. This is not a good story for the average and mid-level Nigerians.

Some motorists in Katsina State, during the week, described the removal of the subsidy as not palatable because it has reduced their financial status to the lowest ebb. According to them, commuters have resulted in using other means of transportation, as it is now cheaper to move on a motorcycle than buses and others.

A motorist and activist, Abubakar Mamuda said he has resolved to purchase a new motorcycle because he can no longer continue to buy fuel at the new pump price. “I have been using a car for the last six years but with the present fuel pump price I decided to park my car for a motorcycle to at least move around to my workplace and carry out other essential businesses.

“I must state here that this government led by Bola Tinubu has not started well at all. He appears to be playing to the gallery and satisfying the elite that other Nigerians. How can you announce a policy as sensitive as fuel subsidy removal by doing the first thing first—putting the poverty-alleviating architecture first? There is chaos and confusion everywhere, everyone is on his own and does what he likes, this is not what we expected,” he said.

He added that to fuel his car for as much as N24,000 is no longer feasible, with a motorcycle, “I can still afford to buy fuel of N3,000 to reduce the burden caused by the removal of subsidy.”Another motorist, Michael Buhari said he abandoned his car for a secondhand motorcycle that could at least take him to his workplace and do other business.

“How much is the take-home pay that would be enough to cater for me, my wife and my children in a month with the present fuel pump price,” he asked. He maintained that taking his children and wife to and from school is a routine but I have devised other means to make ends meet.

“Yes, the removal of subsidy is in the best interest of all, but how it was done is taking a toll on Nigerians who are not prepared to contain the after-effects. The Federal Government should have allowed for a gradual removal with at least some soft landing for the generality of the people,” he added, saying, “No one can adjust to the new price in a jiffy.

“This has portrayed Tinubu and his Government as insensitive for not allowing for a gradual removal with the desired palliatives in place before enforcing the removal to ease the burdens of Nigerians. The experiences are the same. While the motorists are complaining of the high cost of the commodity, commuters are crying foul about the high fares as a result of the removal.”

Mr. Kunle Issac, a real estate manager, disclosed to our correspondent in Akure, Ondo State that he has reduced the distances he covers with his car every day due to a hike in pump price. According to him, “There are some sites that I visit twice daily, but I have reduced my visit to once daily. I consider how much I spend on fueling my car to go to the site. I, therefore, visit either in the morning or in the evening. I choose where to go in the morning or evening depending on my reason for the visit.”

He said moving from his home at Orita-Obele to the office at Alagbaka, he now pays N700 to and fro instead of N300 he used to pay. He explained that “The hike in pump price has forced the taxi drivers to increase the fare by about 50 percent, as a ride from Orita-Obele to his office at Adegbemile, which used to be N300, but since the subsidy was removed costs N700.”

Market women are also wailing, lamenting the rise in transport fares as a result of the subsidy removal. They disclosed that it has also caused a rise in prices of farm produce, food items and other commodities.

According to them, a measure of garri that used to sell for N300 is now N500. Likewise, prices of tomatoes, pepper, onion, and other vegetables have gone up. The soup that cost about N3000 before the subsidy issue now costs N5000 or more.

One of the market women disclosed that the transport fare from Oja-Oba in Akure, the Ondo State capital, to Shasha Market in Akure North Local Government Area was N200 before, but it has risen to N400. At the peak period, they pay more. This is the same report across the country.

Speaking on how the development has taken a toll on the social life of individuals, Mr. Jamil Temitope said the situation has forced him to reduce the number of bottles of beer he drinks every other day to just a bottle at a seat. He said the single bottle of beer is equivalent to one litre of petrol. Some men went further to tell our correspondent that the patronage of mistresses has been cut down to the barest minimum due to non-increment in inflow vis-a-vis the hike in pump price.

One of them told our correspondent on condition of anonymity that the hotel cum short rest points he uses have added to the price per hour. In some places, the former price was N1000 per hour but has added N500 due to an increase in the price of PMS.

“They will have to put on their power generating set so that their clients will feel comfortable using the facility. Though some of them have devised a method of using a small generator that consumes low fuel.”

Ironically, virtually all those who spoke to our correspondent agreed with the subsidy removal because they claimed President Tinubu told them the pains of the removal won’t last forever, a position Professor of Economics at the Kwara State University, Muhadeen Aberuja slightly disagreed with. He said the government has not marched action with the subsidy announcement. He said the government’s inability to put together a palliative package by now is exhibition insensitivity.

The austere economy has forced many to reduce embarking on frivolous trips or social engagements. Everyone appears to have declared austerity measures in their homes to cope with the consequences of the fuel subsidy removal which many see as a symptom of poverty. Nevertheless, they are all expectant of the palliatives being promised by the government to cushion the effects of the economic policy.

Since the hope of the people has been raised by President Tinubu through what the outcome of the economic policy would be and the series of palliatives to be rolled out soonest, the new government needs to know that these great expectations must not be dashed.

With the removal of subsidy without any cushion whatsoever yet, many more Nigerians are finding it extremely difficult to stay afloat financially. Fueling a 50 litre vehicle per week could be gulping between N24,000 and N28,500 weekly, depending on the side of the country. This is besides the cost of maintenance.

For the home too, the cost of running the generator has also risen sharply. This has expectedly escalated the cost of intra and inter-city transport with more people now forced to trek short distances or abort trips that are non-essential. Electricity tariff has also been on the steady rise at a time salaries remain stagnant. There are talks of a possible increase in the minimum wage by the government. This does not include private sector operators, even as many state governments owe months of salaries arrears.

To this end therefore some Nigerians say that in spite of the fact that the fuel subsidy removal may be intended in good faith, there is a dire need for President Bola Ahmed Tinubu to provide palliatives in the form of an increase in salaries of workers as well as other incentives to cushion the effects of hike in the pump price of petroleum products across the country.

For the Chairman Non-Academic Staff Union (NASU) of Nnamdi Azikiwe University Awka, Comrade Chukwugozie Ikegulu, the hike in the pump price of Premium Motor Spirit (PMS) is indeed a terrible blow to the masses. He told our correspondent that he now treks most of the time and in some cases uses public transport which is equally expensive nowadays.

The President-General of Building Materials International Market, Ogidi, Anambra State, Chief Jude Nwankwo said the situation is unbearable. He said he had to adjust himself to the present situation by reducing his schedule. He said while providing palliatives, there’s a need for government to build small refineries to refine petroleum products in the country rather than exporting the products to other countries for the same purpose and increasing point of sale costs when imported into the country. That the poor masses will enjoy more if the government managed the petroleum sector very well.

The Commissioner for Petroleum and Mineral Resources in Anambra State, Tony Ifeanya also expressed the need for the provision of palliatives to cushion the sufferings of the people.