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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

Dr Bello Matwallle: Why Dialogue Still Matters in the Fight Against Insecurity

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By Musa Iliyasu Kwankwaso

In the history of leadership, force may be loud, but wisdom delivers results. This is why security experts agree that while military action can suppress violence temporarily, dialogue is what permanently closes the door to conflict. It is a lesson the world has learned through blood, loss, and painful experience.

When Dr. Bello Matawalle, as Governor of Zamfara State, chose dialogue and reconciliation, it was not a sign of weakness. It was a different kind of courage one that placed the lives of ordinary citizens above political applause. A wise leader measures success not by bullets fired, but by lives saved.

Across conflict zones, history has consistently shown that force alone does not end insecurity. Guns may damage bodies, but they do not eliminate the roots of violence. This understanding forms the basis of what experts call the non-kinetic approach conflict resolution through dialogue, reconciliation, justice, and social reform.

When Matawalle assumed office, Zamfara was deeply troubled. Roads were closed, markets shut down, farmers and herders operated in fear, and citizens lived under constant threat. Faced with this reality, only two options existed: rely solely on military force or combine security operations with dialogue. Matawalle chose the path widely accepted across the world security reinforced by dialogue not out of sympathy for criminals, but to protect innocent lives.

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This approach was not unique to Zamfara. In Katsina State, Governor Aminu Bello Masari led peace engagements with armed groups. In Maiduguri granted amnesty to repentant offenders of Boko Haram, In Sokoto, dialogue was also pursued to reduce bloodshed. These precedents raise a simple question: if dialogue is acceptable elsewhere, why is Matawalle singled out?

At the federal level, the same logic applies. Through Operation Safe Corridor, the Federal Government received Boko Haram members who surrendered, offered rehabilitation and reintegration, and continued military action against those who refused to lay down arms. This balance
rehabilitation for those who repent and force against those who persist is the core of the non-kinetic approach.

Security experts globally affirm that military force contributes only 20 to 30 percent of sustainable solutions to insurgency. The remaining 70 to 80 percent lies in dialogue, justice, economic reform, and addressing poverty and unemployment. Even the United Nations states clearly: “You cannot kill your way out of an insurgency.”

During Matawalle’s tenure, several roads reopened, cattle markets revived, and daily life began to normalize. If insecurity later resurfaced, the question is not whether dialogue was wrong, but whether broader coordination failed.

Today, critics attempt to recast past security strategies as crimes. Yet history is not blind, and truth does not disappear. Matawalle’s actions were rooted in expert advice, national precedent, and global best practice.

The position of Sheikh Ahmad Gumi, who publicly affirmed that Matawalle’s approach was appropriate and that military force accounts for only about 25 percent of counterinsurgency success, further reinforces this reality. Such views cannot be purchased or manufactured; they reflect established security thinking.

In the end, dialogue is not a betrayal of justice it is often its foundation. And no amount of political noise can overturn decisions grounded in evidence, experience, and the priority of human life.

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Opinion

Matawalle: The Northern Anchor of Loyalty in Tinubu’s Administration

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By Adebayor Adetunji, PhD

In the broad and competitive terrain of Nigerian politics, loyalty is often spoken of, yet rarely sustained with consistency, courage and visible action. But within the administration of President Bola Ahmed Tinubu, one Northern appointee has demonstrated this quality not as a slogan, but as a lifestyle, as a political principle and as a national duty — Hon. (Dr.) Bello Muhammad Matawalle, Minister of State for Defence.

Since his appointment, Matawalle has stood out as one of the most loyal, outspoken and dependable pillars of support for the Tinubu administration in the North. He has never hesitated, not for a moment, to stand firmly behind the President. At every turn of controversy, in moments of public misunderstanding, and at times when political alliances waver, Matawalle has continued to speak boldly in defence of the government he serves. For him, loyalty is not an occasional gesture — it is a commitment evidenced through voice, alignment, and sacrifice.

Observers within and outside the ruling party recall numerous occasions where the former Zamfara State Governor took the front line in defending the government’s policies, actions and direction, even when others chose neutrality or silence. His interventions, always direct and clear, reflect not just loyalty to a leader, but faith in the future the President is building, a future anchored on economic reform, security revival, institutional strengthening and renewed national unity.

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But Matawalle’s value to the administration does not stop at loyalty. In performance, visibility and active delivery of duty, he stands among the most engaged ministers currently serving in the federal cabinet. His portfolio, centred on defence and security, one of the most sensitive sectors in the country, demands expertise, availability and unbroken presence. Matawalle has not only embraced this responsibility, he has carried it with remarkable energy.

From high-level security meetings within Nigeria to strategic engagements across foreign capitals, Matawalle has represented the nation with clarity and confidence. His participation in defence summits, international cooperation talks, and regional security collaborations has positioned Nigeria as a voice of influence in global security discourse once again. At home, his involvement in military policy evaluation, counter-terrorism discussions and national defence restructuring reflects a minister who understands the urgency of Nigeria’s security needs, and shows up to work daily to address them.

Away from partisan battles, Matawalle has proven to be a bridge — between North and South, civilian leadership and military institutions, Nigeria and the wider world. His presence in government offers a mix of loyalty, performance and deep grounding in national interest, the type of partnership every President needs in turbulent times.

This is why calls, campaigns and whisperings aimed at undermining or isolating him must be resisted. Nigeria cannot afford to discourage its best-performing public servants, nor tighten the atmosphere for those who stand firmly for unity and national progress. The nation must learn to applaud where there is performance, support where there is loyalty, and encourage where there is commitment.

Hon. Bello Matawalle deserves commendation, not suspicion. Support — not sabotage. Encouragement, not exclusion from political strategy or power alignment due to narrow interests.

History does not forget those who stood when it mattered. Matawalle stands today for President Tinubu, for security, for loyalty, for national service. And in that place, he has earned a space not only in the present political equation, but in the future judgment of posterity.

Nigeria needs more leaders like him. And Nigeria must say so openly.

Adebayor Adetunji, PhD
A communication strategist and public commentator
Write from Akure, Ondo State, Nigeria

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Opinion

Drug Abuse Among People With Disabilities: The Hidden Crisis Nigeria Is Yet to Address

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By Abdulaziz Ibrahim

Statistically Invisible, Persons with Disabilities feel shut out of Nigeria’s drug abuse war as a report from Adamawa reveals lacks data and tailored support needed, forcing a vulnerable group to battle addiction alone.

In Adamawa State, the fight against drug abuse is gaining attention, but for many people living with disabilities (PWDs), their struggles remain largely unseen. A new report has uncovered deep gaps in support, treatment, and data tracking for PWDs battling addiction despite official claims of equal access.

For nearly three decades, Mallam Aliyu Hammawa, a visually impaired resident of Yola, navigated a world increasingly shrouded by drug dependency. He first encountered psychoactive substances through friends, and what began as casual use quickly escalated into long-term addiction.

“I used cannabis, tramadol, tablets, shooters everything I could get my hands on,” he recalled. “These drugs affected my behaviour and my relationship with the people close to me.”

Family members say his addiction changed him entirely. His friend, Hussaini Usman, described feeling “sad and worried” when he realized Aliyu had fallen into drug use.

Aliyu eventually made the decision to quit. It was marriage and the fear of hurting his wife that finally forced him to seek a new path. “Whenever I took the drugs, I felt normal. But my wife was confused about my behaviour,” he said. “I decided I had to stop before she discovered the full truth of what I was taking.”

A National Problem With Missing Data

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Nigeria has one of the highest drug-use rates in West Africa, according to the United Nations Office on Drugs and Crime (UNODC). Over 14 million Nigerians between the ages of 15 and 64 use psychoactive substances. Yet, within that massive user base, PWDs are statistically invisible.

There is almost no national data on drug abuse among persons with disabilitiesa critical gap that experts warn makes it impossible to design effective, inclusive rehabilitation programmes.

Ibrahim Idris Kochifa, the Secretary of the Adamawa State Association of Persons with Physical Disability, told this reporter that PWDs face unique, systemic pressures that intensify their vulnerability to drug abuse, specifically citing poverty, unemployment, isolation, and social discrimination.

“Whenever a person with disability is caught with drugs, the common decision is to seize the drugs and let him go,” Kochifa said, speaking on behalf of the disabled community leadership. “But if they consult us, we have advice to offer on how they can be treated and rehabilitated. Without involving us, no programme will fully benefit people with disabilities.”

NDLEA Responds

At the National Drug Law Enforcement Agency (NDLEA) Command in Adamawa, officials insist their services are open to everyone without discrimination.

Mrs. Ibraham Nachafia, the Head of Media and Advocacy for the NDLEA Adamawa State Command, said during an interview, “Our rehabilitation centre is open to all. There is no discrimination. Anyone including persons with disabilities can access treatment.”

While the official position suggests inclusiveness, disability advocates call it “tokenistic.” They argue that equal access on paper does not translate to tailored support in practice. True rehabilitation for PWDs requires specialized counselling that understands their unique traumas, physically accessible facilities, and significantly stronger community engagement to prevent relapse.

A Call for More Inclusive Action

Advocates are now urging the Nigerian government and drug-control agencies to build a response framework that recognizes PWDs as a vulnerable group in need of targeted support.

The advocate Goodness Fedrick warns that until rehabilitation and prevention programmes reflect the realities faced by people with disabilities, Nigeria’s battle against drug abuse will remain incomplete.

For people like Aliyu Hammawa, who managed to recover without structured support, the message is clear: many others may not be as fortunate.

This story highlights the urgent need for inclusive, data-driven, and community-supported approaches in Nigeria’s fight against drug addiction. Until the nation sees and serves this ‘hidden crisis,’ its overall battle against addiction will continue to be fought with one hand tied behind its back.

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