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FUEL SUBSIDY AND PRICE CONTROL- SOLUTION TO ECONOMIC HARDSHIP IN NIGERIA
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
News
EU Unveils Major Investment Drive in Nigeria with €290m Global Gateway Package and €50m Health Manufacturing Facility
EU Unveils Major Investment Drive in Nigeria with €290m Global Gateway Package and €50m Health Manufacturing Facility
By: Michael Mike
The European Union has announced a significant expansion of its strategic partnership with Nigeria, unveiling a €290 million investment package under its Global Gateway Strategy to support digital infrastructure, healthcare manufacturing, agricultural value chains and migration management.
The announcement was made during the Eighth Nigeria–EU Ministerial Dialogue held in Abuja and co-chaired by Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar and the EU High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission, Kaja Kallas.
European officials said the seven new investment operations demonstrate a renewed political commitment to deepen cooperation between both partners while supporting Nigeria’s development priorities.
“In the current geopolitical context, the European Union is keen to enhance its partnership with Nigeria,” Kallas said. “Bringing more EU investment to Nigeria, aligning with the Renewed Hope agenda for the Nigerian Federal Government is a key priority for both sides.”
The EU Commissioner for International Partnerships, Jozef Síkela, said the investments are designed to support long-term economic growth while strengthening critical sectors.
“Together with Nigeria, we are investing in the modernisation of the digital sector, a stronger health system and in the development of agriculture,” Síkela said. “These Global Gateway investments create quality infrastructure, sustainable jobs and long-term economic opportunities that benefit the Nigerian people while also creating new opportunities for Europe.”
The digital sector received the largest share of the investment package, with €131 million earmarked for improving connectivity, expanding digital services and strengthening digital skills.
Under the programme, the EU will support the rollout of approximately 90,000 kilometres of fibre-optic cable across Nigeria in partnership with the European Bank for Reconstruction and Development.
The project aims to deliver secure and affordable internet access to an estimated 33 million Nigerians who currently lack reliable connectivity.
It will also support the development of secure and interoperable digital public infrastructure and contribute to Nigeria’s technical talent development initiative aimed at training millions of digital professionals.
Alongside the broader investment package, the development arm of the European Investment Bank, EIB Global, signed a €50 million financing agreement with the Bank of Industry to boost healthcare manufacturing in Nigeria.
The facility will support local companies producing pharmaceuticals, vaccines, diagnostic products and other medical devices through a dedicated credit line aimed at addressing financing gaps in the sector.
The agreement was announced in the presence of senior officials including the Bank of Industry’s Managing Director and Chief Executive Officer, Olasupo Olusi, Nigeria’s Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, and the EU Ambassador to Nigeria and ECOWAS, Gautier Mignot.
Olusi said the initiative represents a major step toward building Nigeria’s domestic pharmaceutical and medical manufacturing capacity.
“This partnership marks a pivotal step in Nigeria’s journey from being a major importer of essential health commodities to becoming a competitive producer within regional and global value chains,” he said.
“By mobilising long-term patient capital into local pharmaceutical, vaccine and diagnostics manufacturing, we are not only strengthening health security but also catalysing industrial growth, skills development and high-quality job creation.”
The initiative is financed under the Human Development Accelerator programme backed by the European Commission and implemented by the European Investment Bank in partnership with the Bill & Melinda Gates Foundation.
Vice President of the European Investment Bank, Ambroise Fayolle, said the partnership demonstrates the EU’s commitment to strengthening health systems across Africa.
“By financing the development and local manufacture of essential medicinal and nutritional products, we enhance access to affordable, safe and high-quality treatments for diseases while improving the resilience of supply chains,” Fayolle said.
The EU investment package also includes €86 million to support agricultural development, particularly in Nigeria’s cocoa and dairy value chains.
The financing will provide easier access to credit for smallholder farmers and agribusiness companies through the Bank of Industry while supporting climate-smart agriculture policies and sustainable production.
Officials said the initiative aligns with Nigeria’s ambition to expand dairy production and strengthen cocoa exports to European markets.
Another €16 million will support migration management programmes, including reintegration support for returning migrants and efforts to combat human trafficking networks.
The funding will provide social, economic and psychological assistance for voluntary returnees while strengthening Nigeria’s capacity to tackle smuggling and trafficking networks.
The latest commitments build on earlier EU investments in Nigeria in sectors including urban transportation in Lagos, renewable energy, democratic governance and programmes to combat gender-based violence.
With the new package, total Team Europe commitments to Nigeria since 2025 have reached €962.5 million.
Officials said the growing portfolio highlights the EU’s intention to deepen economic cooperation with Nigeria while promoting sustainable development, industrialisation and private sector growth.
The European Investment Bank alone has invested more than €2.3 billion in Nigeria since beginning operations in the country in 1978, supporting projects in infrastructure, climate resilience, innovation, agribusiness and small business financing.
European officials said the new investments are expected to strengthen Nigeria’s capacity to build resilient industries, create jobs and expand opportunities for regional trade across West Africa.
EU Unveils Major Investment Drive in Nigeria with €290m Global Gateway Package and €50m Health Manufacturing Facility
Ex-civilian joint task force member arrested for threatening family with rifle in Plateau
By: Zagazola Makama
Troops of Operation Enduring Peace have arrested a former member of the Civilian Joint Task Force (CJTF) in Bassa Local Government Area of Plateau State for threatening a family member with a firearm.
According to sources, the arrest occurred at about 0700 hours on March 22 at Maraban Zallaki village, where the ex-CJTF member was found in possession of a locally made rifle and two live.
“The suspect was reportedly threatening to shoot a family member of his ex-wife when troops intervened,” the sources said.
Preliminary investigations revealed that the suspect is mentally unstable.
He, along with the recovered firearm and ammunition, is currently in troops’ custody for further investigation and appropriate action.
Ex-civilian joint task force member arrested for threatening family with rifle in Plateau
Army arrests four suspects over attempted transformer vandalism
By: Zagazola Makama
Troops of Operation Udo Ka have arrested four suspects in Afikpo Local Government Area of Ebonyi State for attempting to vandalize a transformer at the SETRACO live camp in Amasiri.
According to source, at about 0650 hours on March 21, troops from 24 Special Engineering Regiment and 2 Works Battalion responded to a distress call from the camp’s Public Relations Officer about a suspected individual trying to tamper with a transformer.
“On arrival, troops confirmed that one suspect had been apprehended by camp security personnel while attempting to carry out the act,” the source said.
Preliminary interrogation of the suspect led to the arrest of three additional accomplices and the recovery of a large quantity of copper wires, aluminum cables, batteries, cutting tools, and other equipment believed to be intended for theft or vandalism.
The suspects and recovered items are now in the custody of the troops for further investigation and appropriate legal action.
Army arrests four suspects over attempted transformer vandalism
EU Unveils Major Investment Drive in Nigeria with €290m Global Gateway Package and €50m Health Manufacturing Facility
Ex-civilian joint task force member arrested for threatening family with rifle in Plateau
Army arrests four suspects over attempted transformer vandalism
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