The Bola Tinubu government has started off with the removal of the fuel subsidy, the controversial scheme that has existed for more than 30 years. Experts have argued the fuel subsidy is expensive, unsustainable and a fodder for corruption. Critics worry its absence could further squeeze Nigeria’s poorest. Is Tinubu’s ‘brave new era’ one to anticipate or dread?
On New Year’s Day in 2012, when many Nigerians were in their villages and hometowns celebrating the holidays (as is the common tradition) and preparing to return to the cities to begin another year of work, then-president, Goodluck Jonathan, announced his government was ending the fuel subsidy. Through the Petroleum Products Pricing Regulatory Agency, the Jonathan’s government explained that it was deregulating the petroleum sector, which meant that Nigerians would start buying petrol at the international market price. Overnight, the price of petrol went up from N65 to N141. The price hike, which led to an increase in the cost of transport fares, sparked outrage among Nigerians, many of whom had been forced to buy the commodity at the black market rate during the Christmas holiday, a situation typically caused by fuel suppliers’ hoarding.
The removal of the subsidy on New Year’s Day had a domino effect at a level perhaps not expected by the government. Transportation costs increased by more than 200 per cent and many Nigerians that had travelled for the holidays and spent money in celebration were left stranded. Some were forced to sell their belongings at prices less than their original values to raise money for transportation...
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