When the President’s government announced the end of the fuel subsidy scheme on his inauguration day of May 29, 2023, few could have predicted the devastating impact the move would have on the Nigerian populace. Indeed, this was followed by the abolition of multiple foreign exchange systems a few weeks later, thereby plunging many citizens into unprecedented economic distress.
Unfortunately, the policies put in place by the current government have led to a spike in the prices of petrol, food and other essential consumer goods, leading to uncontrollable hyperinflation. The recent increase in the pump price of petrol from N858 to over N1,000 per litre at the Nigerian National Petroleum Company Limited (NNPCL) filling stations is a tangible proof of this.
It would be recalled that fuel was selling at N198 before the government declared the end of the subsidy. Similarly, the exchange rate of the naira which was below 600 to the dollar is now above 1,700 in the parallel market since its devaluation.
While many Nigerians have expressed their pain and called on the President to roll back some of these measures to provide relief to the masses, the Federal Government has maintained its position, arguing that these reforms are necessary to turn around the Nigerian economy.
This was seconded by Dr. Ndiame Diop, World Bank Country Director for Nigeria, during the launch of the Nigeria Development Update (NDU) report in Abuja on Thursday, October 17, 2024. Diop warned that “rolling back these reforms would be detrimental and would spell disaster for Nigeria.”
Meanwhile, the Minister of Finance and Minister of Economy, Mr. Wale Edun, has testified to the government’s commitment to keeping these reforms in place despite the challenges faced by the people.
It is clear from this situation that the economic decisions taken by the government have had a huge impact on the lives of ordinary Nigerians. While combating inflation and reviving the economy are laudable goals, it is crucial to strike a balance between the necessary reforms and the welfare of the most vulnerable citizens.