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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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Four Killed, Three Injured in Attack on Illegal Mining Site in Plateau

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Four Killed, Three Injured in Attack on Illegal Mining Site in Plateau

By Zagazola Makama

Four persons have been killed and three others injured following an attack by unknown gunmen at an illegal mining site in Barkin-Ladi Local Government Area of Plateau State.

Security sources said the incident occurred at about 1:30 p.m. on May 2 at Mazat mining site, where the victims were reportedly engaged in unauthorised mining activities.

The sources disclosed that the assailants opened fire on the victims, killing four on the spot while three others sustained varying degrees of gunshot injuries.

According to the sources, the injured victims—two females and one male—were rushed to a nearby hospital for medical attention and are currently receiving treatment.

They added that the corpses of the deceased have been deposited at the hospital morgue for autopsy.

The sources further noted that security operatives were mobilised to the scene, while additional deployments have been made to track down the perpetrators.

They reiterated that night mining activities remain prohibited in the state, stressing that investigations into the incident are ongoing.

Four Killed, Three Injured in Attack on Illegal Mining Site in Plateau

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Security Operatives Repel Attack in Benue Community Over Land Dispute

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Security Operatives Repel Attack in Benue Community Over Land Dispute

By Zagazola Makama

Security operatives have repelled an attack on Okpute Ainuette community in Oju Local Government Area of Benue State following a renewed land dispute with a neighbouring community.

Security sources said the incident occurred at about 9:15 a.m. on May 2 when armed men, suspected to be from a community in Obi Local Government Area, invaded the area.

The sources disclosed that operatives swiftly responded to a distress call and mobilised to the scene, where they engaged the attackers in a gun duel.

According to the sources, the assailants fled into nearby bushes after being overpowered by superior firepower.

They added that no casualty was recorded during the encounter.

The sources further said security teams have commenced combing operations in surrounding bushes to track down and arrest the fleeing suspects.

They noted that additional deployments have been made to reinforce ongoing operations in the area, with efforts focused on restoring calm and preventing further clashes between the communities.

Security Operatives Repel Attack in Benue Community Over Land Dispute

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“Act Now or Lose the North”: KACRAN Issues Stark Warning as Insecurity Spirals Out of Control

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“Act Now or Lose the North”: KACRAN Issues Stark Warning as Insecurity Spirals Out of Control

By: Michael Mike

The Kulen Allah Cattle Rearers Association of Nigeria (KACRAN) has called on Northern leaders to set aside political differences and take decisive, collective action to address the worsening insecurity in Nigeria’s North-West and North-Central regions.

In a strongly worded press statement at the weekend signed by its National President, Hon. Khalil Mohammed Bello, the association expressed deep concern over the prolonged crisis, which it said has led to the deaths of thousands of innocent citizens, the destruction of property worth trillions of naira, and the widespread rustling of livestock—the primary source of livelihood for millions of families.

KACRAN described the situation as both tragic and avoidable, warning that continued inaction could inflict irreversible economic and political damage on the region.

The association particularly highlighted a disturbing report by Amnesty International concerning an incident in Kwara State, where several pastoralists—including women and children—were allegedly detained at a National Youth Service Corps (NYSC) orientation camp. According to the report, more than 150 detainees reportedly died due to disease and poor living conditions.

KACRAN called for a full, transparent investigation into the incident and demanded the immediate release of innocent individuals still in detention.

Central to KACRAN’s message is the assertion that Northern Nigeria possesses the resources and leadership required to end insecurity if there is genuine commitment. The group pointed to the region’s pool of experienced leaders—including former Heads of State, military officers, traditional rulers, and business figures—as critical assets that must be mobilized.

“The solution lies with us,” the statement emphasized, urging Northern stakeholders to take ownership of the crisis rather than shifting blame.

While calling for regional responsibility, KACRAN acknowledged efforts by President Bola Tinubu noting key security appointments and significant budgetary allocations—reportedly exceeding ₦5 trillion—to the defence sector as evidence of federal commitment.

However, the group cautioned that relying solely on the Federal Government without complementary local action would delay meaningful progress.

KACRAN also underscored the importance of dialogue, citing relative peace achieved in areas such as Birnin Gwari in Kaduna State and parts of Katsina State as proof that collaborative engagement among leaders can yield results.

Despite the reported incident, the association praised the Kwara State Government for its efforts in livestock development, particularly the creation of a dedicated ministry. It said these initiatives demonstrate goodwill toward pastoral communities, while urging authorities to ensure justice and prevent future occurrences.

KACRAN stressed the enduring unity of Northern Nigeria, warning against allowing political divisions to undermine shared heritage and coexistence.

“The North must not allow politics to destroy a house we all inhabit,” the statement read, calling for urgent action to restore peace, mutual respect, and stability across the region.

The association expressed hope that its appeal would galvanize leaders into coordinated action capable of ending the cycle of violence and rebuilding trust among communities.

“Act Now or Lose the North”: KACRAN Issues Stark Warning as Insecurity Spirals Out of Control

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