The increasing cost of fuel is more than just a number on a pump; it is a stark reality that affects every aspect of daily life. For millions of ordinary Nigerians, the relentless rise in fuel prices has become a heavy burden, suffocating their daily lives and exacerbating economic challenges.
Therefore, as global energy markets fluctuate, the impact is acutely felt by citizens, Nigerians who generally earn N30,000 ($38) the lowest minimum wage in the world, according to a recent report by Picodi, a global e-commerce company find themselves grappling with soaring costs and limited opportunities and buying fuel at the same price with nations that earns $2,140 as minimum wage.
Sadly, the consequences of escalating fuel prices permeate every aspect of Nigerian life, with transportation costs bearing the brunt. Public transportation fares surge, stretching the budgets of commuters who rely on affordable transit options. Meanwhile, for those whose livelihoods depend on private vehicles, the rising fuel expenses strike at their earnings, leaving many struggling to make ends meet.
Beyond transportation, the ripple effects of expensive fuel reach into every household. As businesses grapple with higher operating costs, they pass on the burden to consumers, leading to increased prices for goods, food, and services. This inflationary pressure further exacerbates the challenges faced by millions of Nigerians already living below the poverty line.
Amidst this crisis, the government has proposed palliatives and infrastructure support to provide relief to struggling citizens during times of crisis. However, skepticism abounds as Nigerians raise critical questions about the accountability of those in power. The mismanagement of resources intended to alleviate their hardships only fuels public distrust.
A stark example of this mismanagement was witnessed during the COVID-19 lockdown, where palliatives meant for the masses were discovered in state government warehouses, rather than reaching those in dire need. Sadly, public’s anger erupted leading to the looting of the warehouses across the country, and the incident shed light on the urgent need for transparency, accountability, and ethical governance.
Recall that the federal government’s N8,000 initial proposal of palliatives faced vehement rejection from Nigerians, who demanded functional refineries within the country as a long-term solution to reduce dependency on expensive imported fuel. In response, the government shifted its approach, announcing Infrastructure Support Fund for 36 States. However, without accountability and transparency, these initiatives may fall short of their intended impact.
“To combat this crisis and ensure meaningful change, Nigerians must stand united and demand accountability from their leaders. Civil Society Organisations, the media, and other stakeholders play a crucial role in advocating for transparency and exposing any corrupt practices. Holding those in power accountable for their actions is essential to foster trust between the government and its citizens,” a development communication strategist expert and historian, Eigbe Augustine.
Augustine said the struggle faced by ordinary Nigerians due to expensive fuel prices is a poignant reminder of the urgent need for accountability in governance.
In place of short-term palliatives, Augustine said that Nigerians need sound fiscal and monetary policies that will foster national economic growth and development in the short, medium, and long term.
He asserted that the focus should be on ensuring a good life for all citizens rather than relying on temporary measures that may not address the root causes of the country’s challenges.
“The promises of palliatives and infrastructure support are steps towards providing relief, but the true test lies in transparent and ethical resource management. By standing together and demanding accountability, Nigerians can strive for a brighter and more equitable future,” he said.
He criticised the planned distribution of monetary palliatives by the new administration of President Bola Tinubu to disburse N8,000 to 12 million households. He also condemned any attempt to distribute cash to Nigerians via the recently announced Infrastructure Support Fund.
He believed that it is a faux pas, especially considering that the government might rely on the previous register compiled and used by the immediate past regime of President Muhammad Buhari for social intervention programmes.
According to Augustine, “These programmes were used as conduits to siphon public funds for self-centered interests by officials, why should they repeat it.”
Furthermore, Augustine warned that giving money directly to individuals could trigger hyperinflation in the country. Instead, he suggested that the funds should be used for capital projects that benefit the public as a whole.
Regarding the allocation of N70 billion to members of the 10th National Assembly from the N500 billion proposed palliative to cushion the effects of fuel subsidy removal, Augustine strongly criticised it as ridiculous and the apogee of absurdity.
He condemned the government’s insensitivity towards the plight of Nigerians, pointing out that such a massive amount is being allocated to fewer than 500 lawmakers while the rest of the over 200 million citizens receive only a paltry balance. He believed this reflects the disdain and contempt of the political class towards ordinary Nigerians.
Also, an independent, not-for-profit, research, training, advocacy and capacity-building organisation Centre for Democracy and Development (CDD) has emphasised the essence of effective leadership, stating that it revolves around the ability to wield influence, comprehend complex situations, and make accurate forecasts.
CDD stressed the importance of these qualities for guiding Nigeria through its economic challenges.
Speaking on the issue of subsidy removal and the planned Infrastructure Support Fund, CDD senior programme officer, Austin Aigbe, condemned their impact, dubbing them a “scam.” They called for a clear direction and policy framework that goes beyond mere liberalisation, considering that Nigeria is not a liberalized economy.
Addressing the topic of deregulation, the Aigbe raised a critical concern: the simultaneous existence of regulation while advocating for deregulation.
He pointed out the confusion and contradiction in the system, specifically questioning the National Nigerian Petroleum Corporation’s (NNPC) role in determining fuel prices in what is supposed to be a deregulated economy.
In terms of utilising funds borrowed from the International Monetary Fund (IMF), Aigbe stressed the need to focus on refurbishing existing moribund refineries or constructing new ones within a two-year timeframe.
This move, according to Aigbe, could substantially improve Nigeria’s petroleum production capabilities and infrastructure.
Aigbe further emphasised that the Nigerian government should seek support for refinery projects similar to the assistance provided to Dangote’s refinery venture.
Proposing that the government submit a well-structured proposal to the IMF or the World Bank, he expressed confidence that they would offer their backing, potentially enabling the construction of a new refinery within one year.
In line with these recommendations, Aigbe advocated for the establishment of mini crude oil refining plants akin to those used in South Africa, capable of producing 5,000-10,000 mw daily.
He proposed implementing these mini refineries in oil-producing states or across all six geopolitical zones, emphasising their potential to boost the country’s refining capacities.
Shifting the focus to the pressing issue of hunger and social challenges, he highlighted the urgency of the situation. He lamented the growing cases of extreme measures taken to cope with hunger, including reports of child selling, exchanging sex for food, and a rise in social vices.
He termed the situation “sad” and underscored the critical need for immediate and comprehensive measures to address these challenges.
In the realm of social welfare, he firmly stated that Nigeria should not operate solely as a palliative state.
He urged the development of a robust social security system that provides care and support to those in genuine need, moving away from short-term palliative measures.
Reiterating the importance of a more comprehensive approach, CDD called for a systemic solution that lifts people out of poverty and ensures that every worker receives a living wage they can take pride in. By adopting such measures, he said that Nigeria can make significant progress in addressing its social and economic concerns.
“We don’t need palliative measures, but a system that will lift people out of poverty and provide a living wage for every worker to be proud of,” he added.
Joining the chorus, the president of the Civil Liberties Organization (CLO), Comrade Igho Akeregha expressed strong disapproval of the recent increase in the pump price of fuel.
He criticised the move, especially considering that it occurred just a few months after the removal of fuel subsidy, which had already pushed millions of Nigerians into poverty.
Comrade Akeregha asserted that this ongoing assault on the already impoverished citizens of Nigeria must not continue. He also criticized the promised Infrastructure Support Fund or palliative in any guise by Tinubu, labeling it a mere joke.
“Fuel is now being sold for N700 in most filling stations, and at NNPC, it is sold for N617. What does this mean for Nigerians? N700 per litre of fuel. Moreover, the prices of goods and services are also rising in response to this increase. It is worth noting that Tinubu secured $800 million in loans from Brenton Wood and the World Bank, which they are now distributing among themselves.
“We are aware that the National Assembly is taking N70 billion of that amount for itself, and N24 billion is going to the National Judicial Council. This appears to be a deliberate conspiracy to compromise the judiciary. However, Nigerians are no longer blind to these tactics. We must be vigilant and ready to confront these politicians.”
He emphasised that the current administration’s pattern of inflicting pain on the suffering population must be challenged and halted before it’s too late.
“Nigeria is officially rated as one of the poverty capitals of the world, with 133 million citizens living in multidimensional poverty. It is considered one of the most corrupt countries and a safe haven for bandits and terrorists. Despite its abundant oil and gas resources, Nigeria imports fuel and has four non-functional refineries that consume billions of dollars in maintenance costs, which become a channel for public funds embezzlement by each new government. Nigeria has now become a breeding ground for various criminal activities.”
The CLO President also highlighted a concerning report from the Debt Management Office, which revealed that Nigeria’s total foreign debt had risen to N49.85 trillion ($108.30 billion) by March 31st, 2023, from N46.25 trillion in December 21st, 2022.
