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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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Troops arrest 14 suspects in cordon-and-search operation in Borno

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Troops arrest 14 suspects in cordon-and-search operation in Borno

By: Zagazola Makama

Troops of Sector 1, Operation Hadin Kai, have arrested 14 suspects during a cordon-and-search operation in Bama Local Government Area of Borno.

Sources said the operation, conducted by troops of 21 Special Armoured Brigade, followed credible intelligence on the activities of a suspected terrorist and kidnapper identified as Baba Ali.

The sources disclosed that the operation took place at about 2:20 p.m. on March 25 at Ngurosoye village, where the suspect was being tracked through intercepted communications.

During the operation, troops apprehended 14 suspects at the location where the tracked calls were received.

Two bags of fertiliser, suspected to be for illicit use, were also recovered from the scene.

The suspects are currently in military custody for further investigation and necessary action.

Troops arrest 14 suspects in cordon-and-search operation in Borno

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Troops recover weapons, rescue injured civilian in Zamfara operations

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Troops recover weapons, rescue injured civilian in Zamfara operations

By: Zagazola Makama

Troops of Operation Fansan Yamma have recovered weapons and rescued an injured civilian during clearance and response operations in Maru and Maradun Local Government Areas of Zamfara State.

Sources said troops of 1 Brigade conducted exploitation operations at about 10:15 a.m. on March 27 across Magami, Yartasha, Yargaladima, Mashayanzaki, Hanutara and Dansadau communities.

The source explained that the operation followed an earlier attack on troops at Yatashi Sahabi community in Maru LGA, aimed at dominating the general area and denying terrorists freedom of action.

“During the exploitation, troops recovered one QJC anti-aircraft gun l, one AK-47 rifle and a burnt Hilux vehicle,” the source said.

The source further disclosed that at about 2:30 p.m., troops deployed at Forward Operating Base Maradun, alongside Community Protection Guards (CPGs), responded to intelligence on terrorists blocking the Randa–Magamin Didi road in Maradun LGA.

“However, the terrorists fled before troops arrived at the scene.

Troops rescued one civilian who sustained injuries during the incident and evacuated the victim to General Hospital Maradun for medical attention,” he said.

According to the source, troops have continued to dominate the affected areas with aggressive patrols to deter further terrorist activities.

Troops recover weapons, rescue injured civilian in Zamfara operations

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FG Unveils Unified System to End Fragmented Aid, Accelerate Poverty Exit

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FG Unveils Unified System to End Fragmented Aid, Accelerate Poverty Exit

By: Michael Mike

The Federal Government has unveiled a sweeping reform of Nigeria’s humanitarian and poverty reduction architecture, adopting a new unified framework aimed at ending years of fragmented interventions and placing vulnerable citizens on a clear path from survival to self-reliance.

At the close of a four-day National Technical Workshop in Abuja, the Minister of Humanitarian Affairs and Poverty Reduction, Dr. Bernard Doro, announced the adoption of the One Humanitarian – One Poverty Response System (OHOPRS) as the country’s new national coordination framework for humanitarian action, social protection and poverty reduction.

Speaking during a press conference at the United Nations House in Abuja, the minister said the initiative represents a decisive shift in Nigeria’s approach to addressing poverty and humanitarian challenges.

“Today marks a defining moment in our journey towards reforming humanitarian interventions and reducing poverty at scale,” Doro told journalists and development partners.

He explained that the workshop, convened by the ministry in collaboration with international and local partners, was designed to tackle what he described as a fundamental weakness in Nigeria’s humanitarian ecosystem — the fragmentation of programmes and lack of coordination among institutions.

The minister illustrated the urgency for reform with a story shared by a field team working in Nigeria’s conflict-affected North-East.

According to him, the team encountered a mother of four who had spent three years receiving intermittent humanitarian support but remained trapped in poverty.

“She received enough food to survive the week, but never enough tools to change her life,” he said.

Quoting the woman’s words, he added: “We are always helped… but we are never moving forward.”

Doro said the story reflects a broader systemic failure in the country’s poverty response mechanisms.

“It is not that support is not reaching people,” he said. “It is that our systems are not designed to move people from survival to self-reliance.”

The minister warned that failure to reform the system would continue to waste scarce resources and leave vulnerable communities trapped in cycles of dependence.

“If a patient arrives at a hospital and ten different doctors each treat one symptom — with no shared notes, no shared diagnosis — that patient may survive the day but will never truly recover,” he said.

“Nigeria’s poor have had many doctors. What they have not had is a consultant who sees the whole person.”

To address these gaps, the government adopted the One Humanitarian – One Poverty Response System (OHOPRS), which the minister described as a national operating system rather than another standalone programme.

“OHOPRS is not another programme,” he stressed. “It is intended as a national operating system.”

The framework is designed to unify humanitarian interventions, social protection programmes and poverty reduction initiatives under a single coordination platform.

According to Doro, the new system will drive five major structural changes in how assistance is delivered across the country.

These include the transition from multiple coordination mechanisms to a single national system, the integration of several beneficiary databases into one national registry architecture, and the shift from project-based funding to a pooled financing structure with stronger accountability mechanisms.

He added that the new framework would also focus on measurable poverty exit outcomes rather than mere intervention delivery, while introducing real-time monitoring systems to strengthen transparency.

Central to the reform is what the minister described as a “Ladder of Progress”, a structured pathway designed to track the journey of every beneficiary from identification to economic resilience.

Under the system, vulnerable citizens will first be identified through the National Social Register. Their interventions will then be tracked using a Unified Beneficiary Register.

Beneficiaries will subsequently move through a Poverty Exit Pathway designed to guide them towards economic independence, after which they will be monitored through a Growth Register to ensure they remain resilient and do not relapse into poverty.

Doro emphasised that the success of the initiative will depend on the alignment of institutions across all levels of government and development partners.

He called on ministries, departments and agencies, state and local governments, development partners, the private sector, civil society organisations and non-governmental organisations to integrate their interventions into the unified national system.

“This reform requires collective commitment,” he said.

The minister also framed poverty reduction as a strategic national priority under the administration of President Bola Ahmed Tinubu, noting that addressing vulnerability is central to national stability.

“Poverty reduction is not an act of charity; it is a pillar of national security,” he said.

“We are no longer content with managing poverty. Our goal is to end it.”

He added that the government’s new approach aims to move beyond temporary relief and focus instead on long-term economic empowerment.

“We are moving from helping Nigerians survive to enabling them to thrive,” he declared.

The workshop brought together government officials, development partners, humanitarian organisations and policy experts to deliberate on the structure, financing and operationalisation of the new system.

With the adoption of the framework, the Federal Government said the next phase will focus on implementation, integration of existing programmes and nationwide alignment of humanitarian and poverty reduction interventions under the OHOPRS platform.

FG Unveils Unified System to End Fragmented Aid, Accelerate Poverty Exit

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