Mr Okafor, a commercial tricycle (keke) rider in Benin City, Edo State capital, has been unable to go about his daily enterprise. The price of Premium Motor Spirit (PMS), also known as petrol, which he needs to operate his tricycle, has gone up by over 100 percent since the Federal Government announced the removal of subsidy on the product. From an average of N200 per litre, the pump price of petrol has climbed to over N500 a litre depending on the location.
Like Mr Okafor, many Nigerians across the country are facing serious difficulties as a result of the removal of petrol subsidy, which was announced by President Bola Ahmed Tinubu in his inaugural speech on May 29.
The hike in the price of petrol arising from the subsidy removal has combined with an already high inflation, at 20.14 percent in April 2023, to further shoot up the prices of goods and services across the country – from transportation to basic foodstuff and other household needs – piling more pressure on already suffering Nigerians.
A cross-section of Benin City residents who spoke to The Nigerian Observer lamented that rising cost of commodities and services is putting a strain on their household incomes.
Mrs Vivian, a trader, complained that the sudden increase in the cost of transportation has affected the cost of foodstuff. According to her, transportation from Apple Road to Oregbeni Market in Benin, which used to cost N600, is now N1,000. This has forced traders to also increase the prices of their wares.
“A rubber of garri that was sold at N3,200 currently sells at N3,800. Coupled with the hike in transportation, I am compelled to sell a rubber at the rate of N4,500 to be able to make some profit,” she said.
A Bolt driver in Benin metropolis, who does not want his name mentioned, said the subsidy removal has put him in dilemma as it has practically wiped off his profit.
“On Saturday, I bought fuel worth N5,000 which is about 9 litres for my vehicle but was only able to make N4,200 before the fuel got exhausted,” the Bolt driver said.
When asked how much he made before the subsidy removal, he explained that 9 litres of fuel which previously cost N1,980 would last him four trips during which he would make about N4,500. But now, the once-lucrative business can no longer put food on his table.
Mrs Helen, a thrift collector (Olidara), said the removal of subsidy has affected her just like many middle- and low-income citizens. According to her, people that usually make daily contributions are no longer able to do so as they say the money they would save won’t be enough for them to buy fuel, especially those using generators to power their business. They would want to have more money to buy fuel in order to run their business. This has reduced the number of her clients and, consequently, affected her stream of income.
Mr Eze, a trader at Mission Road in Benin City, owns a car but has had to park his car at home because he could no longer fuel it at the present cost.
He said before the subsidy removal, he would buy 20 litres of petrol at N4,400 at the rate of N220 per litre and that would take him for like a week, but he has now parked his car at home because 20 litres of petrol, at the current rate of N520 per litre, would cost him N10,400.
Mr Eze now takes public transportation to his shop. Even then, the trader who resides at Upper Mission Extension said he spends nothing less than N1,200 to and from his shop daily since the removal of the petrol subsidy.
For Mrs Regina, a civil servant, the high cost of petrol means she can no longer afford to drive to her workplace every day. She considers it cheaper to go by public transportation, even though that is far from convenient.
“It is rather funny how I used to drive to the office every day, but after the declaration by our new president on subsidy removal, I am forced to use public transport because it’s a bit cheaper, though still on the high side,” Mrs Regina said.
“And honestly, I am not used to it. It is time wasting and stressful as the drivers squeeze us up in the vehicles in order to get more money,” she said.
She, however, reckoned that the policy would turn out good if only the funds could be properly channelled to cushion the effects of the subsidy removal by investing in the power sector, infrastructure and other key sectors of the economy. She also stated that the approach taken by the Federal Government was inhumane and seemed typical of the All Progressives Congress (APC) governments.
“Courtesy demands that the government tries to get the people on board with the plan and give them time to adjust by removing the subsidy gradually rather than the abrupt approach they have taken,” she said.
The Nigeria Labour Congress (NLC) and its associates, following the petrol subsidy removal, had threatened to go on strike, though they later suspended the plan. However, the Federal Government has insisted that the removal of subsidy, though painful at the moment, would be of long-term benefits to the nation.
Mr Gbenga Olawepo Hashim, a former presidential candidate and businessman, appealed to the labour movement and other social groups to accept the subsidy removal as a painful surgical procedure instituted to excruciate a dangerous cancerous cell in the life an ill patient.
But the presidential candidate of the Labour Party, Mr Peter Obi, while supporting subsidy removal, said he disagreed with the manner in which the Federal Government went about the implementation of the policy.
“If you want to remove a tooth, one should apply anaesthesia in order to reduce the pain, rather than pulling out the tooth by force,” Obi said in a recent interview at the court where he is contesting the results of the 2023 presidential election that brought Tinubu to power.
