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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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Experts Urge Evidence-Based Energy Reforms as Nigeria’s Transition Debate Intensifies

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Experts Urge Evidence-Based Energy Reforms as Nigeria’s Transition Debate Intensifies

By: Michael Mike

Energy policy experts have called for stronger data-driven decision making in Nigeria’s energy transition process, warning that ambitious climate targets must be balanced with economic realities, job security, and the country’s persistent energy access challenges.

The call was made during a national policy dialogue where researchers presented findings on the economic, environmental, and political implications of different energy transition pathways for Nigeria.

At the event, the Stakeholders Research Workshop on Supporting Just Transition in Nigeria, organized on Tuesday in Abuja by the Ministry of Environment and Society for Planet and Prosperity (SPP), analysts said the study was designed to help guide policymaking by providing empirical insights into how various decarbonisation strategies could impact growth, employment, and emissions.

President of the Society for Planet and Prosperity, Professor Chukwumerije Okereke, said Nigeria’s existing commitments under its Nationally Determined Contributions (NDCs) and Energy Transition Plan (ETP) are ambitious but require stronger technical validation before full implementation.

He noted that current projections suggesting up to 85 percent adoption of electric vehicles by 2060 and large-scale solar electricity generation of about 150 gigawatts may be difficult to achieve under current infrastructure and investment conditions.

“Policy targets are not enough on their own,” Okereke said. “What matters is how these targets will be achieved and what the economic and social consequences will be.”

He added that the research explores multiple transition scenarios, including gas-centered development, renewable-focused expansion, and hybrid energy strategies combining both gas and renewable technologies.

According to him, a balanced transition pathway may be more realistic for Nigeria, allowing the country to gradually reduce emissions while still leveraging its vast natural gas resources to support industrial growth and electricity access.

Researchers also emphasized that Nigeria’s transition strategy must address energy poverty, noting that millions of households still lack reliable electricity supply. They said distributed renewable energy systems, particularly solar mini-grids, could play a crucial role in expanding electricity access to rural and underserved communities.

Energy economists involved in the study explained that their analysis combined energy modelling with macroeconomic projections to assess how different policy choices would influence GDP growth, employment creation, and carbon emissions.

Senior Research Fellow, ODI Global, Dr. Timothy Kelsall said the research does not attempt to predict future outcomes but instead evaluates possible consequences of policy decisions.

“We are not predicting the future,” Kelsall said. “We are showing policymakers what could happen under different scenarios so they can make informed decisions.”

He explained that the study models three major transition pathways — gas-focused transition, renewable-dominated transition, and hybrid energy development — noting that each pathway would create different economic and political impacts across sectors.

Analysts also stressed that energy transition policies must consider Nigeria’s political economy realities, as policy reforms often create winners and losers across industries and interest groups.

Experts warned that abrupt policy changes could trigger economic disruptions, particularly in regions and sectors heavily dependent on fossil fuel revenues. Instead, they recommended a gradual transition supported by investment incentives, industrial development policies, and workforce reskilling programs.

The research also examined the use of savings from fuel subsidy reforms, noting that simply removing subsidies without clear reinvestment strategies would not automatically translate into development gains.

Stakeholders said subsidy savings could be redirected toward renewable energy infrastructure, social protection programs, and industrial development initiatives that support economic diversification.

While Nigeria continues to depend heavily on oil and gas exports for foreign exchange earnings, analysts said diversification efforts remain critical for long-term economic stability.

However, they stressed that natural gas could play a transitional role in supporting electricity generation and industrial expansion while renewable energy capacity continues to grow.

Researchers urged stronger collaboration between government institutions, private sector investors, and civil society organisations to ensure successful implementation of transition policies.

As Nigeria navigates its climate and energy future, experts say the country must pursue a pragmatic energy strategy that balances environmental protection with economic growth and improved access to reliable electricity for its growing population.

Experts Urge Evidence-Based Energy Reforms as Nigeria’s Transition Debate Intensifies

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Nigeria Expands Citizen Feedback Infrastructure as PEBEC, FAAN Launch ReportGov Kiosks at Major Airports

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Nigeria Expands Citizen Feedback Infrastructure as PEBEC, FAAN Launch ReportGov Kiosks at Major Airports

By: Michael Mike

The Federal Government has intensified efforts to strengthen transparency, accountability, and public service efficiency with the reactivation and upgrade of the national ReportGov feedback system across major international airports in Nigeria.

The initiative, driven by the Presidential Enabling Business Environment Council (PEBEC) and the Federal Airports Authority of Nigeria (FAAN), was formally unveiled at the Murtala Muhammed International Airport Terminal 2 in Lagos, with plans to extend the system to airports in Abuja, Port Harcourt, Enugu, and Kano.

Officials said the project is part of broader governance reforms aimed at improving citizen trust in public institutions while enhancing Nigeria’s business environment and service delivery standards across government agencies.

At the unveiling ceremony, PEBEC Director-General Princess Zahrah Mustapha Audu said the reactivation of ReportGov kiosks represents the federal government’s commitment to placing citizens at the center of governance reform.

She explained that the platform is designed to capture real-time complaints, commendations, and service improvement suggestions from citizens while helping government institutions respond faster to service failures.

According to her, institutionalizing feedback mechanisms will help reduce bureaucratic delays, improve inter-agency coordination, and ensure that public service performance is measured by actual service outcomes experienced by citizens.

FAAN Managing Director Olubunmi Kuku described airports as strategic economic gateways where service quality directly affects Nigeria’s international reputation.

She said improving passenger experience is critical for attracting foreign investment, promoting tourism, and strengthening business travel confidence. Kuku added that FAAN would continue supporting initiatives that promote transparency, operational efficiency, and customer-centered service delivery across Nigeria’s aviation facilities, noting that airport efficiency is closely linked to national economic competitiveness.

ReportGov serves as Nigeria’s official national grievance redress platform designed to capture citizen feedback on service delivery challenges across Ministries, Departments, and Agencies.

The newly upgraded physical kiosks will operate 24 hours daily in high-traffic public locations, allowing travellers and citizens to submit complaints, compliments, and policy suggestions directly into government monitoring systems.

Officials said the platform is structured to track complaints from submission to final resolution, helping authorities identify systemic service gaps and discourage unethical practices in public service interactions.

Government reform advocates said the initiative reflects a broader shift toward citizen-centered governance, where public satisfaction becomes a key performance indicator for government institutions.

Stakeholders noted that improving feedback infrastructure is particularly important as Nigeria continues efforts to diversify its economy and strengthen investor confidence in key sectors such as aviation, trade, and services.

Industry analysts said strengthening service delivery at airports is particularly important because aviation facilities serve as Nigeria’s international interface with the global economy. They explained that passengers’ first experiences at airports often shape perceptions about business conditions, investment potential, and tourism opportunities in the country. Improved feedback systems, they said, will help authorities address operational challenges such as passenger processing delays, service quality issues, and infrastructure maintenance gaps.

Officials also emphasized that the expanded deployment of ReportGov kiosks aligns with national anti-corruption and governance reform objectives. By creating structured reporting channels, the government hopes to strengthen transparency, reduce rent-seeking behavior, and improve coordination among agencies responsible for public service delivery.

As Nigeria continues its economic reform and infrastructure development agenda, authorities said citizen feedback will remain a central tool for measuring public service performance and guiding future policy decisions.

Nigeria Expands Citizen Feedback Infrastructure as PEBEC, FAAN Launch ReportGov Kiosks at Major Airports

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KACRAN Calls for Increased Funding for Northeast Development

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KACRAN Calls for Increased Funding for Northeast Development

By: Michael Mike

The Kulen Allah Cattle Rearers Association of Nigeria (KACRAN) has commended the North East Development Commission (NEDC) for demonstrating transparency and accountability following its recently concluded month-long inspection of development projects across the Northeast region.

In a statement released by KACRAN National President Hon. Khalil Mohammed Bello, the association described the inspection exercise as a strong indicator of responsible public administration, noting that comprehensive project verification remains a key test of accountability in public service delivery.

KACRAN stated that the NEDC’s decision to conduct high-level inspections of both ongoing and completed projects reflects a commitment to ensuring that public funds are translated into tangible developmental outcomes for citizens in the region.

The association further praised what it described as the “boldness and confidence” displayed by the Commission during the inspection tour, saying it signals that projects executed by the agency meet required standards and represent value for money.

Of particular interest to KACRAN members are the Commission’s investments in water infrastructure and livestock support projects aimed at improving pastoral livelihoods across the Northeast.

The association noted that such initiatives are critical to sustaining the livestock sector and supporting pastoral communities, while also aligning with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritizes livestock development, food security, and economic diversification.

KACRAN said strengthening livestock production could help reduce Nigeria’s reliance on imported dairy and meat products while positioning the country as a potential exporter of livestock products in the long term.

The group also commended the composition of the NEDC inspection team, which included the Commission’s Governing Board Chairman, Managing Director, and senior directors from finance, operations, and humanitarian affairs. KACRAN said the inclusion of senior management personnel and media representatives during the nearly 30-day inspection tour demonstrates transparency and accountability in governance.

The inspection covered several development sectors including road infrastructure, drainage systems, primary healthcare facilities, educational projects, water points for livestock, and distribution of humanitarian relief materials to internally displaced persons (IDPs).

KACRAN described the NEDC as a model of sincerity and dedication in Nigeria’s public sector, praising the Commission’s efforts toward the rehabilitation and economic recovery of the Northeast region.

The association, however, called on President Bola Ahmed Tinubu to ensure timely and adequate funding for the NEDC to enable the Commission to sustain its development and humanitarian programs.

It stressed that increased funding would strengthen infrastructure development, livestock productivity, peace-building efforts, and humanitarian interventions across the Northeast.

KACRAN Calls for Increased Funding for Northeast Development

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