Is the Decline of Nigeria’s Nightlife a Blessing in Disguise?

President Bola Ahmed Tinubu campaigned under the slogan of ‘Renewed Hope’. Yet, the manner of his emergence as president in 2023, and subsequent economic policies implemented by his administration, have created a prevalent sense of hopelessness, Tinubu’s inauguration on 29 May 2023 came with a major economic shake up, following the announcement of the removal of subsidies on premium motor spirit. Less than a month later, the government unified exchange rates by disbanding the two-tier valuation system and creating a single, transparent market rate—finally allowing the naira to find its realistic value.

The decision to remove the fuel subsidy was driven by its unsustainable fiscal cost. Its removal was intended to free up fiscal resources and allow government to reallocate funds to welfare and infrastructure projects. In 2022, the government spent over 2.2 per cent of the nation’s GDP (around $10 billion) on the subsidy, an amount that exceeded critical sectoral budgets like defence and security at ₦2.41 trillion ($5.69 billion), infrastructure at ₦1.45 trillion ($3.42 billion), education at ₦1.29 trillion ($ 3.05 billion) and health at ₦820 billion ($3.05 billion). The burden only intensified in 2023, with ₦3.36 trillion expended on subsidy in the first five months before it was abolished. On the other hand, the exchange rate unification was aimed at encouraging foreign investments and further liberalizing the economy.