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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.

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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

Opinion

Kano North Must Not Get lt Wrong : Why Returning Senator Barau Jibrin CFR is a Strategic Imperative

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By Muazu A. Ishaq

In moments of electoral decision, societies are often confronted with a choice that goes beyond sentiments and party affiliation to the deeper question of consolidation and continuity versus disruption, a moment when the electorate must pause, look beyond the noise of detractors and ask a fundamental question; can we afford to make this costly mistake? For the good people of Kano North Senatorial District that moment is now, the coming 2027 electoral cycle presents such a moment one that demands careful reflection, not sentiment. The stakes are not about party loyalty or sentimental rhetoric, it is about avoiding a mistake whose consequences could reverberate for years.

The Deputy President of the Senate, Barau I. Jibrin PhD CFR, has, over time, built a record that is both visible and measurable. His re-election, therefore, is not merely about sustaining a political career; it is about preserving a strategic advantage that Kano North currently enjoys within Nigeria’s national power structure.

As the number five citizen in the country, his position offers the zone direct access to influence, opportunities, and federal preseence, assets that are neither automatic nor easily replaced.

One of the most remarkable aspects of Senator Barau’s stewardship is his deliberate investment in human capital development.
While some politicians are busy sponsoring mudslinging campaigns to tarnish his growing national image, Senator Barau has been busy building a future for Kano youth.

Recently, the first batch of his foreign-trained scholars returned home; 16 graduates in Cyber Security and Forensic Science and 10 graduates in Artificial Intelligence and Machine Learning. These are not ordinary certificates. These are the tools of the 21st-century economy, and they are now in the hands of sons and daughters of Kano North.

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Subsequent batches are on the way. This is a pipeline of excellence. Lose Barau, and you lose the architect of this intellectual revolution.

If anyone doubts the scale of Senator Barau’s grassroots reach, let them examine the events of April 19, 2026. In a continuation of his legendary mega empowerment programmes, the Deputy President of the Senate distributed 47 brand new cars and 282 motorcycles to critical stakeholders and grassroots mobilizers across the 13 LGAs in Kano North including party chairmen, party secretaries, primary school headmasters, and secondary school principals among others. This was a strategic injection of mobility and dignity into the very fabric of the zone’s leadership.

Just five days later, on April 24, 2026, Senator Barau proved that his empowerment is not a one-off event but a continuous process. He announced the continuation of yet another significant programme that was launched previous month; a cash donation of ₦100,000 each to 100 beneficiaries in every single one of the 13 LGAs of Kano North.

Taken together, these initiatives reflect a leadership approach that is both strategic and people-centered. They are not isolated gestures but components of a broader vision aimed at uplifting communities, strengthening institutions, and preparing the next generation for global competitiveness.
It is, therefore, not surprising that such a rising profile at the national level may attract political opposition and attempts at distraction.

However, elections should ultimately be guided by evidence, performance, and the long-term interests of the people not by transient narratives.
Kano North today occupies a position of relevance in Nigeria’s political and developmental landscape. This is not accidental; it is the product of deliberate engagement, years of strategic alliances, and consistent delivery. To risk losing this standing would be to step back from a trajectory of progress that is already yielding results.

The decision before the electorate is therefore clear. It is a choice between consolidating and sustaining democratic gains or starting afresh; between sustained access to national influence or uncertain repositioning. In making that choice, the people must ask themselves a simple question: which path best secures their future?

Avoiding a regrettable mistake requires clarity of purpose and fidelity to facts. The record speaks for itself. Continuity, in this instance, is not just desirable, it is essential.

As Kano North looks ahead, the imperative is to protect its voice, preserve its advantage, and ensure that the momentum of development is not interrupted. Re-electing Senator Barau Jibrin is, therefore, not just a political decision it is a strategic investment in the future of the constituency.

Muazu A. Ishaq
+2348038981655
muazuabdullahi29@gmail.com

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Opinion

DSP Barau and “Abandoned Projects” : An Appraisal

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By Abba Anwar

Only those who know and understand the sluggish nature of budget implementation under different administrations, can understand whether projects are deliberately abandoned by their initiators and facilitators. Or whether the onus is on the pattern of implementation and implementors.

If Kaduna Eastern Bypass, initiated 2002, Abuja-Lokoja highway started in 2006, Kano-Maiduguri of 2007, Sokoto – Tambuwal- Jega-Kontagora, flagged – off in 2009, Abuja-Minna of 2010, among other abandoned federal projects, are not marked as noise making hubs, why then is Kano-Gwarzo-Dayi, that was flagged – off in June, 2021, can deliberately be tagged as point of condemnation by noise makers?

Kano-Gwarzo-Dayi federal road, as facilitated by the Deputy President of the Senate, His Excellency Barau I Jibrin, CFR, since 2021, though abandoned at a point, up to January, 2026, the work has resumed since February, 2026, this year.

Senator Jibrin worked hard and made sure that, the sum of Thirty Seven Billion Naira (N37,000,000,000) only was appropriated in 2026 Appropriation Bill, which has now become Act. After that he also pushed, very well for the additional Six Billion and Three Hundred Million Naira (N6, 300,000,000) only.

Unlike DSP’s facilitated federal road project of Kano-Gwarzo-Dayi, which was flagged – off in 2021, as contractors are back to site, since February, this year, there are many abandoned federal road projects, scattered around the country, whose resumption of work, with so many of the projects, is still elusive.

Such as Makurdi-Naka-Adoka-Ankpa federal road flagged – of in 2012, Calabar-Itu-Ikot Ekpene, of 2010, Benin-Sapele-Warri road, which was flagged – off in 2009, Enugu – Onitsha road, of 2013, Kano-Katsina dualization project, that was started in 2013, as contractor left in 2022, among many other abandoned federal roads.

Abuja-Kaduna-Zaria-Kano federal road is another case of study, in this context. The project has been in limbo for many years, with touch-and-go strategy.

So to me, castigating or rather blaming DSP for this singular Kano-Gwarzo-Dayi road is either premature or not necessary at all. In his own case, the work has resumed. And look at what he pushed to be reflected in 2026 national budget. Which has already become, 2026 Appropriation Act.

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Another constituency project for DSP Jibrin, is E-learning Centres across 5 local governments from his Kano North Senatorial District, in collaboration with National Information Technology Development Agency (NITDA), was facilitated by the Senator in 2015.

The Centres are across 5 local governments, Tofa, Gwarzo, Kabo, Bichi and Dambatta.

Some people erroneously blame the Senator, advancing that, the E-learning Centres were abandoned by him, since 2015, which, according to them, shows his “negligence” over his constituency. As a matter of fact, the truth of the matter is this, all the 5 E-learning Centres were converted to become Study Centres for National Open University of Nigeria (NOUN). Amongst other locations from the remaining local governments that constitute Kano North Senatorial District.

Another great project that some are blaming His Excellency DSP is Barau Initiative for Agricultural Revolution in the North West (BIARN). Many things were said about it by opponents. But the truth of the matter is this, that the project is yet to take-off fully due to the issue of cash flow from the end of the partner agency. Which is Bank of Agriculture (BOA).

Coincidentally I came across a press statement issued by the
Special Adviser to the Deputy President of the Senate on Media and Publicity, Ismail Mudashir, narrating that, the Chairman of the Initiative, Prof. Bashir Fagge Muhammad, disclosed that, “Following the signing of a Memorandum of Understanding (MoU) with the BOA management, applicants were invited to participate in the initiative. However, implementation was stalled due to challenges relating to cash flow.”

As the programme was unveiled March, 2025, it aims to revolutionise agriculture and encourage young Nigerian graduates to venture into farming.

Part of the statement reads, “Specifically, the programme was designed to empower 558 young farmers with loans ranging from N1 million to N5 million for rice and maize cultivation across the seven North West states in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda on food security and youth empowerment.”

Adding that, “Applicants are therefore urged to remain patient, as the Board of the Initiative, under the chairmanship of Professor Bashir Fagge Muhammad, is working closely with the BOA management to resolve the issue.”

So we can now understand that the programme is not, and can never be, abandoned, as some started speculating while peddling rumors around.

It is not the intention of this piece to start cataloging DSP’s long standing achievements as the Senator representing Kano North, in many areas of human endeavor.

From his Scholarship scheme where hundreds of students were sponsored for their undergraduate studies, across Nigerian universities and dozens, who were sponsored for Postgraduate studies abroad, as some completed their studies and started coming back. As thousands students from his constituency are given scholarship for their upkeep. Not to talk of his intervention in all other areas of education.

I’m not cataloging his intervention in the security sector. As he is the single individual from across North West whose intervention in the sector supersedes that of many. A Senator like no other.

His effort in sports development is unmatched. Apart from aiding football clubs and players, his completion of stadium in each of the 13 local governments under his constituency, is something to write home about.

All his interventions in such areas will come our way shortly.

Anwar writes from Kano
Wednesday, 29th April, 2026

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Opinion

The Ink Dried Up: An Open Letter to Matthew Hassan Kukah-Prince Daniel Aboki

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Dear Bishop Matthew Hassan Kukah

I write you with the utmost sense of respect.

Permit me to begin by congratulating you. Not in the usual way, but in a manner that reflects a keen observation of recent developments in our country. Since the emergence of Bola Ahmed Tinubu as President, and coincidentally since your assumption of office as Pro-Chancellor and Chairman of the Governing Council of Federal University of Applied Sciences Kachia, there appears to have been a remarkable shift in the narrative of insecurity across Nigeria.

From Zamfara State to Sokoto State, Katsina State, Benue State, Plateau State, Kwara State, and indeed across several troubled parts of our nation, one might be tempted to conclude that the k!llings have suddenly come to an end. The silence is striking. The headlines have softened. The urgency has waned.

It is this very contrast that compels this letter.

You will recall, Bishop, your powerful and courageous interventions during the administration of Muhammadu Buhari. Your voice rang loud through a series of open letters that captured national attention and stirred both conscience and controversy.

On Christmas Day, December 25, 2018, you wrote with piercing clarity about a nation drifting, warning of a “nation at w@r with itself.”

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Again, on December 25, 2019, your message, “A Nation in Search of Vindication,” questioned the moral and political direction of leadership, calling attention to bloodshed and division.

On December 25, 2020, in “A Nation in Search of Peace,” you spoke even more bluntly, addressing the worsening insecurity and the growing despair among Nigerians.

And on December 25, 2022, your letter once again raised concerns about governance, justice, and the value of human life in Nigeria.

These interventions were not just letters. They were moral signposts. They reminded leadership of its duty and the nation of its conscience.

It is against this backdrop that your current silence, or perhaps restraint, becomes more noticeable.

Has the situation improved so dramatically that the urgency of those words is no longer required?

Have the forests suddenly emptied?
Have the highways become safe?
Have the cries of victims ceased?

Or is it that the burden of national admonition must shift depending on who occupies the seat of power?

Lord Bishop, sir, your voice has always carried weight not because it was loud, but because it was consistent. Not because it was critical, but because it was principled.

Nigeria still needs that voice.

Not selectively. Not occasionally. But steadfastly.

If indeed peace has returned to the troubled lands of Zamfara, Sokoto, Katsina, Benue, Plateau, Kwara, and beyond, then you deserve commendation for witnessing such a transformation. But if, as many still believe, the reality on the ground has not changed as dramatically as the silence suggests, then your voice is needed now as much as it was then. Unless there is something we are not seeing that you would want us to see, could it be a case of “Tinubu I love, Buhari I hate”? Or should we begin to wonder whether conviction has given way to convenience?

Bishop, sir, would you recommend that we keep silent when we benefit and speak up only when we do not?

Over time, we have seen that history is kinder to those who remain constant in truth than to those who are convenient in silence.

I write not in condemnation, but in expectation.

Prince Daniel a Concerned Citizen and Head of cool Wazobia And Arewa Radio on Kano

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