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FUEL SUBSIDY AND PRICE CONTROL- SOLUTION TO ECONOMIC HARDSHIP IN NIGERIA

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FUEL SUBSIDY AND PRICE CONTROL- SOLUTION TO ECONOMIC HARDSHIP IN NIGERIA

By: Victor Emejuiwe

No sane government should watch its citizens suffer untold hardship and live in poverty. The primary responsibility of government is to protect the life’s and to secure the welfare of the people. President Ahmed Bola Tinubu spontaneously announced the removal of fuel subsidy on the day of its inauguration without considering the attendant consequences of such a decision. In fairness to the removal, the amount of money claimed to be payment of subsidy in Nigeria was quite humongous from N300 billion during the Good Luck Jonathan administration in 2012, to N2.7 trillion in 2022. However, beyond the doubt as to the authenticity of the real value paid on subsidy, the secrecy and corruption associated with the entire subsidy regime was very un-palatable. It was as a result of this, that many Nigerians canvassed for the removal of subsidy. Nevertheless, there are some other school of thought who believes that the government was not sincere on its own part due to the lack of transparency and accountability in petrol consumption and subsidy payment. Also, even where several reports indicting subsidy saboteurs were released, the federal government did nothing to investigate and prosecute those who were accused of corruptly enriching themselves from the subsidy payments. Therefore, the payment of subsidy on its own was not the problem but the willingness of government to come clean with its transaction on subsidy payment and muster the political will to pervert corruption amongst the stakeholders was the major problem. The view on re-introduction of subsidy becomes necessary given the fact that payment of subsidy is a common global practice by governments all over the world. It is taken to ameliorate hardship faced by majority of citizens in the purchase of very expensive commodities. In this case, Nigeria being a mono-economy driven by sales of crude oil, has made the price of every other commodities reflective in the rise or fall in the price of crude oil. The subsidy regime cushioned a lot of hardship amongst Nigerian in the past and with its removal today, Nigerians have not been able to recover from the effect, as we can witness the continuous increase in the prices of all commodities in Nigeria. Most workers do not report to work on a daily basis, some business closed shops and the general standard of living has reduced. Couple with this fact, is government inactiveness in controlling the hike in the prices of locally produced commodities. The lack of a price stabilization and mechanization control which was hitherto implemented in the 70’s have made it possible for middle men to determine the prices of commodities in the market. The practice of the middle men is to acquire these goods from the dealers and hoard them so as to create scarcity and speculate a market price before they sell, with wide profit margin. If government enforce the price control Act as ordered recently by the federal high court on goods and commodities that are locally produced in Nigeria, the hoarders and speculators would run out of business and food items and other commodities would be available at the normal rate. The lack of a price control mechanism is what led to the failure of most government policies on agriculture. It is so unfortunate that the past government of President Muhammed Buhari, made efforts to encourage local production of food commodities such as rice and even provided subsidies to farmers to embark on local rice production, but instead of having the price of rice reduced, it rather led to more than 200 percent increase in the price of rice. Rice which was sold for N9600 before the ban on imported rice, skyrocket to N19,800, at a point, it rose to N36,000 and the government could not do anything to stop the hike. Under this present administration, a bag of rice sells for N77,000. It is an anomaly for government to provide incentives to local producers of commodities and at the same time, do not have control of the market price.
In light of the above, in the interim, the Federal Government should re-introduce subsidy on petrol and diesel under a more transparent regime and deal with saboteurs who divert the products to other countries and in the long run, the Federal government should get our refineries working at optimum capacity so that any attempt to remove subsidy on petrol and diesel will not have much impact on the price on petrol. Also, a list of commodities and items produced locally should be established and the market price should be determined under a price control, stabilization and mechanization regime. The government should enforce the laws and policy on price control. Finally, for resource mobilization, the government should stop oil theft so that more resources can be generated from crude oil and this would help us pay for the subsidy on petrol and also pay for the functionality of our refineries.

*Victor Emejuiwe
Monitoring and Evaluation/Strategic Communication Manager
Centre for Social Justice.
Abuja
08068262366

FUEL SUBSIDY AND PRICE CONTROL- SOLUTION TO ECONOMIC HARDSHIP IN NIGERIA

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Nigeria, Aid Partners Seek $516m to Support 2.5 Million Vulnerable People in North-East in 2026

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Nigeria, Aid Partners Seek $516m to Support 2.5 Million Vulnerable People in North-East in 2026

By: Michael Mike

The Federal Government, in collaboration with humanitarian partners, has launched an urgent appeal for US$516 million to deliver life-saving assistance to 2.5 million people affected by conflict and deprivation in Borno, Adamawa and Yobe (BAY) States in 2026.

The appeal is contained in Nigeria’s 2026 Humanitarian Needs and Response Plan (HNRP) and targets the most severe humanitarian cases in the conflict-affected north-east, where women and children account for nearly 80 per cent of those in critical need.

The humanitarian crisis in the BAY states has been worsened by a prolonged 16-year insurgency, widespread displacement, limited access to essential services, climate-related shocks, economic hardship, and shrinking livelihood opportunities.

Speaking at the launch in Abuja, UN Resident and Humanitarian Coordinator in Nigeria, Mohamed Malick Fall, warned that humanitarian needs are escalating at a time of declining global funding. He noted that delays in closing funding gaps could have fatal consequences, especially for malnourished children.

According to projections, about 3 million Nigerian children under the age of five are expected to suffer from severe acute malnutrition in 2026, with one million of them living in the BAY states. In addition, nearly 35 million Nigerians may face acute food insecurity during the 2026 lean season, including 5.8 million people in the north-east.

The 2026 HNRP places strong emphasis on a transition to nationally-led humanitarian action, as international funding continues to decline globally. The plan highlights the need for closer collaboration between government institutions and humanitarian actors to sustain assistance during this transition.

In his remarks, the Minister of Humanitarian Affairs and Poverty Reduction, Dr. Bernard Doro, reaffirmed the Federal Government’s commitment to leading and coordinating humanitarian responses. He said government efforts would focus on aligning humanitarian action with national reforms aimed at poverty reduction, human capital development, and community resilience.

Governors of the BAY states — Professor Babagana Zulum of Borno, Ahmadu Umaru Fintiri of Adamawa, and Mai Mala Buni of Yobe — also pledged stronger cooperation with humanitarian partners to deliver urgent aid while pursuing long-term solutions for displaced and conflict-affected populations.

Funding for the **2025 HNRP stood at $282

Nigeria, Aid Partners Seek $516m to Support 2.5 Million Vulnerable People in North-East in 2026

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Troops clear multiple settlements in Shiroro LGA, neutralize IEDs during clearance operation

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Troops clear multiple settlements in Shiroro LGA, neutralize IEDs during clearance operation

By: Zagazola Makama

Troops of 1 Division Nigerian Army have successfully cleared multiple settlements in Shiroro Local Government Area of Niger State, neutralizing improvised explosive devices (IEDs) and sustaining pressure on insurgents in the area, a development that marks a significant milestone in ongoing efforts to secure the North Central region.

Sources told Zagazola Makama that the clearance operation, which commenced on Jan. 20, faced challenges from difficult terrain and vehicle breakdowns, including MRAP and Armoured Fighting Vehicle faults.

Despite these setbacks, troops advanced to clear settlements including Galadima Kogo, Danpkala, Angwan Shawo, Kaure, Onagbi, Iburo, Kudogo, Kori, Kampani Kpakari, Chigwamya, Chikuba, and Nabwi.

At Nabwi, troops encountered a roadside IED followed by enemy fire, which was neutralized through superior firepower.

The sources added that Nigerian Air Force assets provided close air support throughout the operation, while unmanned aerial vehicles from the Niger State Government assisted in monitoring and reconnaissance.

Zagazola note that the operation has broader strategic implications. Shiroro LGA has served as a key operational hub for Boko Haram splinter groups, particularly JAS and ANSARU elements.

These groups, led in the Northwest and North Central zones by top lieutenants including Saddiku, Umar Taraba, Kabiru Doctor, and Mamman Kabir, have exported IED-making expertise to expand attacks into Niger, Zamfara, Kaduna, and Kogi States. Their presence in Allawa–Madawaki and other settlements allowed them to establish clandestine cells, smuggle weapons, and enforce informal taxation on local communities.

Military sources stress that sustained clearance operations, coupled with intelligence-led surveillance and cooperation with air component, remain critical to denying freedom of action to insurgents.

The ongoing operations in Shiroro will not only restore civilian confidence but will also prevent JAS and Boko Haram splinter cells from consolidating influence in key strategic corridors linking the Northeast to the Northwest and North Central regions,” a source said.

Troops clear multiple settlements in Shiroro LGA, neutralize IEDs during clearance operation

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Troops recover AK-47 rifle in Taraba during cordon-and-search operation

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Troops recover AK-47 rifle in Taraba during cordon-and-search operation

By: Zagazola Makama

Troops of the 114 Battalion, in conjunction with Department of Intelligence and Analysis (DIA) operatives, have recovered an AK-47 rifle and ammunition during a cordon-and-search operation in Murubai Village, Ardo Kola Local Government Area of Taraba State.

Sources told Zagazola Makama that the operation, conducted on Jan. 22, followed credible intelligence regarding the presence of arms in the village.

The source said the search was carried out at the residence of one Bazoe John, who was not found during the operation. Authorities recovered one AK-47 rifle, one magazine and four rounds of 7.62mm special ammunition, which are now in the custody of the troops.

The source added that the operation comes after the earlier arrest of two suspected gunrunners, identified as Christopher Adamu and James Yangyang, at Sebos Joint in Mayo Dassa, Jalingo LGA and Tautre Village in Ardo Kola LGA on Jan. 11 and 12 respectively.

Troops recover AK-47 rifle in Taraba during cordon-and-search operation

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