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Nigerian Economy And The Subsidy Removal -Nwobi

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President Bola Ahmad Tinubu

 

The economy’s key sectors suffer due to low earnings already consumed by inflated subsidy payments. The trade deficit of $20 million recorded in November 2022 from the low crude oil export receipts signals the urgency to jettison petrol subsidy, develop local production capacity and end fuel import dependency for a favourable balance of trade.

Fuel subsidy was riddled with corruption, manipulation and mismanagement. The N3.92 trillion allocated for petrol subsidy between January 2020 and June 2022, surpasses the combined federal budgets for healthcare, education, and defence throughout the 30-month period. Nigeria spent about 10 trillion Naira on petroleum subsidies between 2006 – 2018. It gulped N5.82 trillion 2021 – 2022 and N3.36 trillion being proposed for the first six months of 2023. These figures indicate a significant drain on the government’s finances, impeding its ability to invest in crucial sectors which could bolster economic growth and people’s well-being

Such a dilemma and tough decision. The government is confronted with either continuing the subsidy and deepening an unsustainable fiscal deficit or risk potential social and economic unrest by its removal. Notwithstanding, the subsidy had to go. Fuel subsidy removal could save Nigeria around N7tn annually which could be channelled to infrastructure, education and health.

Over the years, the Nigerian economy has been subsidised in various ways for many years and this includes fuel, education, electricity forex etc. Fuel subsidies began in the 1970s and became institutionalised in 1977 following the promulgation of the Price Control Act which made it illegal for some products (including petrol) to be sold above the regulated price. While the concept of subsidy itself is noble, its administration in Nigeria has been plagued with serious allegations of corruption and mismanagement.

Thirteen years after diesel was deregulated, kerosene subsidy was removed in 2016. However, the subsidy on Petroleum Motor Spirit (PMS) has proven to be the biggest challenge to the managers of the Nigerian economy. On an annual basis, a substantial portion of the national inflow is committed to funding the subsidy scheme. Of course there are good reasons for the astronomical growth in subsidy amount-price of crude oil in the international market, volume of PMS consumed albeit debatable, and Naira devaluation are some of the drivers. In view of the significance of the amount committed to funding the subsidy regime, I strongly believed that there is a need to have a close look at this scheme.

According to the World Bank, Nigeria’s total revenue in 2000 was USD10.8 billion. By 2010, this amount increased to USD 67.9 bilion. Yet the Nigerian government has spent over USD 30 billion on fuel subsidies over the past 18 years. This has had a significant impact on funds available for critical infrastructure and other essential sectors such as education, health, and defence. According to the Debt Management Office, the country’s public debt stock is being increased as the government had to borrow N1tn to finance fuel subsidy in the year 2022.

According to a report, households in the bottom 40% of the income distribution account for less than 3% of all fuel purchases. Furthermore, it is reported that three-quarters of all fuel sold in Nigeria is consumed by private firms, public transportation services, government agencies, and other businesses. Most vehicles used for carrying large numbers of people (such as molue) and goods are diesel powered which is already deregulated.

Again, household Kerosene which is mostly used by the poor is no longer subsidised, meaning that the poor are already to a large extent paying market prices for their fuel. This effectively means that the government is subsidising mostly those who can afford fuel (PMS) at market rates and not the poorest of the poor who need subsidy. This is one of the major problems with the way fuel subsidy is being implemented in Nigeria. For the benefit of subsidy to reach its intended recipients, the current structure will need to be reviewed and creatively restructured.

Nevertheless, there are always ways to make things better for ordinary Nigerians in the phase of hardship occasioned by the subsidy removal. The government needs to implement mitigating measures swiftly to protect vulnerable households from the adverse effects of fuel price increases, investments in health, education, and infrastructure to support the poor, as well as expanding safety net programs to shield vulnerable populations from the immediate impact of subsidy removal in addition to a fair and equitable transition to a sustainable and economically secure future.

Written by: Cosmas Chukwunonso Nwobi

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Opinion

Let President Tinubu Rename University of Lagos After Gowon, Not Abuja

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Adnan Mukhtar Tudun Wada

 

 

Adnan Mukhtar Tudun Wada

I was not happy when Northwest University Kano was renamed to Yusuf Maitama Sule University, as student leaders of that University then, we followed the interest of the students who were also not happy with the renaming at that time for one reason; the renaming was politically motivated, to hurt the founder of the institution Senator Rabiu Kwankwaso. I was busy mobilising students to protest, the next day I was invited to the DSS for questions where I spent hours and all the people we were mobilising the protest together ran and dissociated themselves from it. I have no option but to plead with the DSS to release me, assuring them that not a single student would protest the government’s action.

The renaming has affected many students who are seeking admission abroad; it’s Northwest University on my transcript and Yusuf Maitama Sule University on my certificate. This is kinda confusing and not good at all.

Politicians should immortalise individuals in their new projects not existing ones. The renaming of the University of Abuja to Yakubu Gowon University is not good for the university’s alumni.

The President should have found a new project or built a new University by naming it after the former Head of State.

I don’t support the idea of playing politics by renaming our universities and this happens mostly in Nigeria.

Imagine waking up renaming the University of Maiduguri to Mohammed Goni University, Yobe State University to Ibrahim Geidam University, the University of Ibadan to Abiola Ajimobi University, the University of Lagos to Lateef Jakande University.

It will be bad for the alumni of the aforementioned universities to come across this.

Why is this only happening in Africa? Look at Makerere University in Uganda, it was established in 1920 but despite Yoweri Mosevenni’s long reign; he didn’t for once attempt to change it to even his name for selfish reasons.

He didn’t think of renaming the Entebbe International Airport after him but in Nigeria, we have this culture of renaming everything after individuals.

If you want to be immortalised, leave a lasting legacy as Gowon did in establishing NYSC. That enough is Okay and better than naming an institution after him.

President Tinubu should have renamed the University of Lagos after Gowon, not Abuja. I’m sure his people will reject this not for any reason but because of the large number of people that will be affected by it.

The University of Abuja Alumni were all crying over this painful decision.

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Opinion

Ibrahim Abdullahi Waiya: Champion of Civil Society and Good Governance in Northern Nigeria

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Ibrahim Abdullahi Waiya, is an influential Civil Society figure in Kano State and Northern Nigeria. He is currently serving as the Executive Director, Citizens for Development and Education (CDE), he has dedicated many years of his civil society activism as advocate for the promotion of democracy, good governance, anti-corruption, peace building and women empowerment

Amb. Waiya, holds number of academic qualifications, including a Higher National Diploma in Public Administration from Kano State Polytechnic, a Bachelor of Laws (LLB) from Usmanu Danfodio University, Sokoto, Master’s in Public International Law at Maryam Abacha, American University, Maradi, and he is currently pursuing a doctor of philosophy at Skyline University, Kano in International Relations

In the course of his career, he held several positions and managed a number of projects. He served as the Director, Alhilal Foundation, from 2003 to 2007, an organization which focused on women empowerment, through basic literacy and skills acquisition. He later coordinated the North West Zonal Office of the Mallam Aminu Kano International Foundation. Amb. Ibrahim Waiya, led and coordinated a number of Local Government Councils Elections Observation missions across 19 Northern states.

In 2011, Waiya managed the Campaign against Drug Abuse under the auspices of Northern Youth Assembly, a youth driven platform with leadership structures in the Nineteen Northern States. He served as Secretary, for both, Kano State Stakeholders Committee on Anti-Drug Abuse Campaign and Kano State Stakeholders Committee on Anti-Child Abuse, a project which was coordinated by the office of the Special Adviser, Child Welfare and National Drug Law Enforcement Agency. His involvement in election observation coordination missions and various public engagements, highlights his commitment to civic engagement towards community development, democracy and good governance

Waiya’s extensive experience includes free consultancy support services to numerous Government Ministries and Agencies such as: Kano State Ministry for Women Affairs and Social Development, Kano State Ministry for Community and Rural Development, office of the Special Adviser to the Governor of Kano State on Child Welfare, Ministry for Special duties, office of the special adviser, joint security services. He has facilitated numerous training workshops and seminars, impacting his knowledge, skills, experience on the community, particularly for community based organizations

In recognition of his contributions, he was appointed to several key positions, such as the President, of the Kano Civil Society Forum, Chairman of the Conference of Northern States Civil Society Networks, Convener, Nigeria for Peace Project, Managing partner, United Nigeria Project, Head of Secretariat, Kano Peace Committee, Secretary General, National Action for Women Agenda,(NAWA), chairman, Board of Trustees, Northern Youth Assembly, (Majalisar Matasan Arewa) Fellow, Institute of Security and Strategic Studies, Fellow, Institute of International Peace and Secure Society, Fellow, Institute of Business Diplomacy and Financial Management, member, Commission of Inquiry on Missing persons, member, Implementation Committee, on the Recommendations of the Report of the Commission of inquiry on missing persons, member, Commission of Inquiry to investigate, various political violence and cases of missing persons, that occurred in the State from 2015 – 2023, member, Commission of inquiry to investigate protest, arson and destruction of public and private properties that occurred from 1st – 10th August, 2024 Amb. Waiya, served as Consultant on various government projects, such as: Kano State Security Trust Fund, Safe Corridor, Campaign against Drug Abuse, across the 44 Local Government Council Areas. Amb. Waiya”s active participation in peace building, policy advocacy and legislative reform has continued to impact positive change in Kano State, the North and Nigeria at large.

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Opinion

“I Transition to PR and Digital Marketing to Transform Brands Globally” – Ibrahim Ayyuba Isah

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As 2024 comes to a close, Ibrahim Ayyuba Isah reflects on his journey from journalism to public relations (PR) and digital marketing. With over a decade of experience in media and communications, Ibrahim’s transition was fueled by a desire to empower businesses—starting with Northern Nigeria but extending globally—to build impactful narratives and achieve sustainable growth.

“Every brand, regardless of location, deserves access to the tools and expertise needed to thrive in today’s fast-paced world,” Ibrahim says. “My goal has always been to bridge the gap in strategic communication, ensuring that no business is left behind.”

From Journalism to Strategic Communication

Ibrahim’s illustrious journalism career spans over a decade, during which he served as a Senior Reporter at TVC News, covering critical developments, including the Kano State Government House for three successive administrations. His work involved breaking major news stories, producing multimedia content, and engaging audiences through digital platforms.

“I’ve always been passionate about communication, but I realized I wanted to do more than report stories—I wanted to help brands craft their own,” Ibrahim shares. “That’s what led me to pivot into PR and digital marketing.”

To equip himself for this new journey, Ibrahim pursued advanced studies, earning a Master’s in Communication Studies and a Master’s in Public Relations from Bayero University, Kano. He further honed his expertise with a Professional Certificate in Digital Marketing from the London School of Business Administration and a Master Diploma in Digital Marketing from the Digital Marketing Skills Institute. These credentials underscore his commitment to mastering the art of strategic communication.

Empowering Brands Through Ayrah Media Concept

As the CEO of Ayrah Media Concept (AMC), Ibrahim leads a PR and creative agency that provides businesses with tailored solutions, including PR consulting, social media management, corporate campaigns, and digital marketing.

“My vision is to empower brands to connect with their audiences, tell compelling stories, and achieve global relevance,” Ibrahim explains. “Through AMC, we’re showing businesses—whether in Northern Nigeria or beyond—that they can reach new heights with the right strategies.”

In 2024, AMC worked on several impactful campaigns, including Ibrahim’s role as a Lead Consultant for the WOFAN-ICON2 project in partnership with Mastercard Foundation, where he developed and executed PR and communication strategies to amplify the project’s impact.

Changing Perceptions and Building Bridges

Transitioning into PR and digital marketing came with challenges, including shifting perceptions about its value.

“Many businesses see PR and digital marketing as optional rather than essential,” Ibrahim says. “But the results are transformative. Strategic communication is not just about visibility; it’s about building trust, credibility, and lasting connections with your audience.”

This philosophy drives Ibrahim’s approach, ensuring that businesses of all sizes—whether local startups or established corporations—can access high-quality PR and marketing services.

Looking Ahead

Ibrahim’s vision for the future extends far beyond regional boundaries. While his roots and passion lie in Northern Nigeria, his focus is on creating strategies that resonate globally.

“Brands in Kano, Lagos, Abuja, or even New York share a common goal: to connect with people and make an impact,” he says. “My mission is to ensure that every business, regardless of size or location, has the tools and strategies to achieve that.”

In 2025, Ibrahim plans to document his professional journey in a book that will explore his experiences as a journalist and PR expert, offering insights into the evolving landscape of communication and its role in business success.

A Message of Gratitude

As he reflects on the year, Ibrahim expresses his gratitude to those who have supported his journey. “I’m incredibly thankful to my mentors, collaborators, and clients who have believed in my vision. Together, we’ve shown that impactful communication has the power to transform lives and businesses.”

With a clear vision and an unwavering commitment to excellence, Ibrahim Ayyuba Isah is poised to lead the way in redefining PR and digital marketing, not just in Nigeria but across the globe.

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