By Oluseye Ojo
President Bola Tinubu has been urged to restore fuel subsidy with a view to alleviating the severe economic hardships being faced by Nigerians.
The appeal was made by an Australia-based Nigerian publisher of 9News Nigeria and Chief Executive Officer of Nine Communications Nigeria Limited, Mr. Obinna Ejianya, during an interview with 9News Nigeria, in Abuja, yesterday.
Tinubu had on May 29, 2023, in his inaugural speech as president of Nigeria, announced removal of fuel subsidy. The announcement made costs of commodities and living to skyrocket.
According to him, “The fuel subsidy removal was implemented with the intention of reducing government expenditure and promoting economic growth.
“However, the consequences of this decision have been far-reaching and detrimental, particularly for the most vulnerable members of society.
“The sudden increase in fuel prices has led to a surge in transportation costs, making it more expensive for people to commute to work or school. This, in turn, has negatively impacted their ability to earn a living and access essential services.
“Moreover, the rise in fuel prices has also caused a domino effect on the prices of other essential commodities. Food prices have skyrocketed, making it increasingly difficult for families to put meals on the table.
“The cost of electricity has also increased, putting an additional burden on households already struggling to make ends meet. Overall, the removal of fuel subsidies has had a cascading effect on the cost of living, exacerbating the suffering of poor Nigerian citizens.”
The Nigerian economy, Ejianya noted, heavily relies on fuel, with many sectors dependent on it for production. “An increase in fuel prices can have catastrophic consequences for the economy, overshadowing any benefits from other policies,” he added.
The sharp rise in fuel costs, he argued, has a direct negative impact on Nigeria’s Gross Domestic Product (GDP) per capita, as it reduces the purchasing power of citizens, limits economic productivity and increases the cost of goods and services.