The Struggles of the Common Man.
The recent 10-day protest that gripped the nation can be seen as a stark reminder of the frustration and desperation felt by many Nigerians. Despite the peaceful demonstrations, the federal government’s response fell short, failing to address the core demands of the protesters. The hardships brought on by this protest seem to have yielded little in terms of tangible change, raising the question: How long will the suffering of Nigerians continue before real solutions are implemented?
The hardship is linked to the removal of Subsidies in the Economy
Subsidies play a crucial role in the economic framework of many nations. They serve as a buffer for the vulnerable segments of society, ensuring that essential goods and services remain accessible. In developed nations, subsidies are not merely tools for political gain but are integral to sustaining sectors that are vital to the economy and the well-being of the populace. For instance, the European Union allocates over €40 billion annually to subsidize agriculture, supporting farmers and ensuring food security. Similarly, the United States extends substantial subsidies to energy, agriculture, and transportation sectors, understanding the long-term benefits of such investments.
These subsidies, while costly, are seen as necessary expenditures to ease the burden on citizens and ensure economic stability. In 2022, global fuel subsidies were heavily concentrated in East Asia and the Pacific, with China alone contributing over $2.2 trillion. The U.S. followed with $757 billion, while other nations like Russia, India, and Japan also made significant contributions.
In contrast, Nigeria’s abrupt removal of fuel subsidies has thrown the nation into a state of economic turmoil. President Bola Tinubu’s decision to discontinue subsidies, announced during his inauguration on May 29, 2023, has led to an unprecedented increase in fuel prices, escalating the cost of living and stoking inflation. While the move was intended to promote fiscal sustainability and attract investment, it has, in the short term, exacerbated the suffering of ordinary Nigerians.
The removal of subsidies has been a recurring policy issue since the return of democratic rule in 1999. However, the current administration’s approach has been particularly harsh, with no adequate measures in place to cushion the blow for the most affected. The consequences have been severe: decreased economic growth, rising inflation, increasing poverty levels, and a surge in fuel smuggling and crime. The informal sector, which constitutes a significant portion of Nigeria’s economy, has been hit hard, leading to job losses and further economic instability.
The Role of Leadership in Economic Reforms.
Leadership is about more than making bold decisions; it requires intention, purpose, and a deep understanding of the implications of those decisions on the populace. A good political leader must be capable of making decisions that benefit the greater good, manage issues effectively, and, most importantly, stand up for what is right, regardless of the political cost. However, in the case of Nigeria’s subsidy removal, it appears that the common man has been overlooked.
Countries that have successfully implemented subsidy reforms have done so by first establishing shock-absorbing measures to protect their citizens. For instance, while subsidies in China and the U.S. are expensive, they are justified by the benefits they provide in terms of economic stability and social welfare. Nigeria’s leaders must take a cue from these examples and recognize the importance of subsidies, particularly in sectors that directly impact the poor.
As Nigeria grapples with the aftermath of subsidy removal, it is clear that the government needs to adopt a more balanced approach. Reforms are necessary, but they must be implemented in a way that does not further marginalize the already struggling population. The government should consider reintroducing subsidies in critical areas, such as fuel, to alleviate the immediate suffering of Nigerians. Furthermore, investments in renewable energy, infrastructure, and social welfare programs should be prioritized to create a more sustainable and equitable economy.
While subsidy removal may have been intended as a long-term solution to Nigeria’s economic challenges, the current approach has placed an undue burden on the common man. The government must reconsider its policies, taking into account the lessons from other nations that have successfully balanced economic reforms with social welfare. Nigerians deserve leadership that is not only decisive but also compassionate, innovative, and committed to easing their suffering. Only then can we hope for a brighter future for all. Written by Daniel Okonkwo for Profile International Human Rights Advocate
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