The subsidy removal in Nigeria by the country’s federal government has far-reaching implications, it is gradual, but it is surely taking shape. In a country of over 200 million people, petrol has been an essential commodity, especially as power supply has been problematic for Africa’s most populous country.
The subsidy removal has been causing untold hardship; however, given a clear distrust between the government and the people, the coming days would certainly be tough on the people. With no clear plan for palliative, the country suffers one of the highest inflation rates currently; food and safe water assessability is still a huge concern, and the corrupt record of Nigeria raises the question of whether, even if something is done by way of palliative, the question is if such suffering assuaging measures won’t end up looted.
Aside from these concerns, shrinking markets and job losses loom as a result of the subsidy removal, the volume of petrol used in the country has reduced, and gridlock has significantly reduced across major roads in the country, signaling a reduction in vehicle use, this trend, if it continues, would certainly threaten the car dealership, spare parts and service or repair of automobile across the country.
This and a whole lot of other terrible scenario bedeviling the country at this critical time is most likely going to get worse over time; this, however, is not the only critical concern of the country as before the subsidy removal in Nigeria, there have been other issues of grave concern such as farmer-herder crisis, terrorism and rebellion. Secessionist groups in the South Eastern part of the country have been imposing a civil disobedience type of protest where residents are forced to sit at home on certain days and sometimes for a whole business week, this has hitherto limited economic activities in the East and now all of these coupled with the reality of the subsidy removal in Nigeria, the reality becomes bleaker for millions of people.
The current devaluation of the Nigerian naira has also played a critical part in intensifying the suffering of the people, as the naira has been on a free fall against other major currencies, and food prices and prices of other essential products and services have significantly increased. All these would impact the economic environment, where several businesses would close, and many more workers would be laid off.
The proposed salary increase of the Nigerian federal government sounds like a Greek gift as there could be massive employment cuts if the pay rise is implemented, then what becomes more important? Paying fewer people more or paying more people less. The future is currently a mirage; the more you look, the less you see; everything is heading south, and there is no realistic approach to finding a solution to a shrinking market, a shrinking economy, looming job loss and increasing pains and suffering; it is not just the subsidy removal in Nigeria, it is a lot more than meets the eyes, Nigerians are currently going through a lot.
The current Tinubu administration doesn’t seem in touch with reality, while understanding that at some point, the country would have to go through some level of pain and suffering to be redeemed and rebuilt into a successful Nation, pulling millions of people from a position where essential items like petrol and education were provided at a subsidized rate to a stage where the price of these earlier subsidized goods and services skyrockets to over 300% is worrisome, life is becoming tougher under this regime, the current situation in Nigeria is already becoming a humanitarian crisis, and something needs to be urgently done.
What we know today is that things are going terribly, and we can foresee the potential economic impact; however, the way the people will react to these radical reforms if nothing is hastily done remains to be seen; it isn’t funny already, people seem to be dying in silence, but we don’t know how long the majority of the population can endure this, what Nigerians make of this is as important as what this makes Nigerians into. It can awaken the passion and zeal for patriotism or wake something undesirable in the population, these are speculative but would have impacts, yet it all remains to be seen in the coming days; the future is unpredictable, and I hope we come out of this one stronger and better. I strongly pray that the subsidy removal in Nigeria will be looked at someday as one of the things we overcame.
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