When President Bola Tinubu declared the end of fuel subsidy on May 29, 2023, his message was firm: “Subsidy is gone.” More than a year later, Nigeria continues to feel the tremors of that abrupt decision. While the subsidy system had long been criticized as wasteful and riddled with corruption, the suddenness of its removal without adequate safeguards or cushioning policies has left millions of Nigerians struggling.
The intention was to free up public funds for vital sectors, such as infrastructure, education, and healthcare. It was billed as a bold step toward economic reform and fiscal discipline. Yet, as transport fares soar, food prices rise, and inflation tightens its grip, the average Nigerian is left asking: Who is benefiting from this reform?
Pain without protection
On paper, the logic of subsidy removal is sound: allow market forces to set fuel prices, eliminate corruption in the supply chain, and end cross-border smuggling. But in reality, the policy shock was poorly managed. Fuel prices have more than doubled, and the cost of living has ballooned, while wages remain stagnant.
The informal sector, which forms the backbone of Nigeria’s economy, has been especially hard-hit. Public transport is now unaffordable for many commuters. Low-income families face skyrocketing food costs. Small businesses reliant on generators are spending more on fuel than on operations or salaries. Rather than economic progress, this feels like a policy-induced regression.
The illusion of savings
Government officials have repeatedly stated that trillions of naira have been saved since the end of subsidy payments. But where are the results of those savings? Citizens are yet to see meaningful improvements in public services or infrastructure. Promised palliatives, such as food distributions, cash transfers, and subsidised transport, have been poorly executed, delayed, or shrouded in secrecy.
There are also concerns that a disguised subsidy has quietly returned through opaque foreign exchange policies or hidden fuel import supports. The Nigerian National Petroleum Company Limited (NNPCL), now operating as a commercial entity, still lacks transparency in its pricing structure. Without clear disclosure of landing costs or forex allocations, it is difficult to believe that the market is truly deregulated.
Who carries the burden?
In the end, it is ordinary Nigerians who are paying the price for this policy. While elites may grumble, they can still afford the increased fuel costs. For most citizens, however, daily survival has become more difficult. In the absence of affordable public transport or effective social protection, the removal of subsidies feels more like abandonment than reform.
A call for transparent, inclusive reform
There is no denying that the fuel subsidy system was unsustainable. But economic reforms must be thoughtfully executed, people-focused, and transparent. The Tinubu administration must urgently account for the savings it claims to have made and demonstrate how those funds are being reinvested in ways that benefit citizens directly.
Nigeria cannot build a prosperous future by transferring financial burdens onto the backs of its most vulnerable. Real reform requires balance, fairness, and, above all, accountability.
