Introduction
The recent removal of fuel subsidy by the Nigerian government has sparked debates across the nation, raising concerns about its impact on the average Nigerian citizen. Subsidy removal entails the removal of government subsidies on essential commodities such as fuel, resulting in increased prices. This article aims to unravel the effects of subsidy removal on Nigerians and explore potential solutions to alleviate the burden on the general populace.
Rising Cost of Living
One of the immediate consequences of subsidy removal is the significant increase in the cost of living. Fuel is a critical component in transportation and power generation directly impacting prices of goods and services. With the removal of subsidies, transportation costs have skyrocketed leading to a surge in prices of food, rent and other daily necessities. Nigerians are burdened with the increased cost of living as their purchasing power weakens while inflation rates spike.
Transportation Woes
The removal of fuel subsidies has a drastic impact on transportation leading to increased fares for buses, tricycles and motorcycles. This heavily affects the masses who rely on public transportation to commute to work, school and run their daily activities. The increased transportation costs eat into their already limited disposable income, leaving many struggling to afford basic necessities.
Adverse Effect on Small Businesses.
Small businesses, the backbone of Nigeria’s economy, bear the brunt of subsidy removal. Already faced with numerous challenges including exorbitant taxes and inadequate infrastructure, small businesses now grapple with higher transportation costs. The increased cost of transporting goods impacts bottom-lines, often leading to reduced profitability, layoffs or even closure. This creates a ripple effect on employment rates and exacerbates the economic challenges faced by the country.
Education and Healthcare Accessibility
The removal of subsidies has repercussions on education and healthcare accessibility. With increased transportation cost, students struggle to get to school and even afford fees. Similarly, patients from underserved communities face challenges accessing healthcare facilities due to the high transportation cost. This hinders educational and healthcare outcomes, perpetuating the cycle of poverty and inequality.
Potential solutions
To alleviate the burden on Nigerians the government should consider implementing measures to cushion the effects of subsidy removal. These may include:
1. Development of efficient and affordable public transportation systems to reduce the reliance on fuel-powered vehicles, thereby lowering transportation costs for the citizens.
2. Investing in renewable energy sources to reduce dependency on fossil fuels for power generation, this will ultimately lower electricity costs and mitigate price hikes.
3. Implementing social welfare programs targeted at the most vulnerable citizens providing subsidies or grants to help them cope with the increased cost of living.
4. Improving infrastructure especially roads and railways to optimize transportation and distribution lowering costs for businesses and consumers alike.
5. Promoting and supporting entrepreneurship by providing access to low-interest loans, skill development programmes and tax incentives to spur economic growth and job creation.
Conclusion
The removal of subsidies in Nigeria has triggered a chain reaction of higher living costs transportation challenges and adverse effects on small businesses, education and healthcare accessibility. It is crucial for the government to consider sustainable solutions to alleviate the burden on Nigerians and create an enabling environment for economic growth. By implementing measures to reduce dependency on fossil fuels investing in public transportation and supporting small businesses Nigeria can navigate through the challenging terrain ahead ensuring a brighter future for its citizens.
VENESSA is a student of the Department of English and Literary Studies of Delta State University, Abraka
