Consumers bemoan impending hike in prices as FG announce subsidy removal
By Oghale Mafuru
Coming on the heels of the official announcement of the subsidy removal by President Asiwaju Bola Tinubu during his inaugural speech, consumers have expressed fears over its adverse implications on the economy especially as the nation still grapples with inflation amid dwindling purchasing power.
The President in his inaugural address titled, “The Nigerian Ideal,” while declaring an end to subsidy stated that the removal is due to the fact that it was not captured in the 2023 budget.
He said, “Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.
“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor.”
Meanwhile, shortly after the announcement, there were reports of long queues in fuel stations nationwide, further exacerbating concerns over the exponential increase of cost items particularly foodstuffs.
Some consumers, who spoke to MARKETING EDGE, decried the harsh economic realities noting that it has become very challenging for households to survive the rising costs especially as income levels remain static.
“I do not know where we are going with this subsidy removal. The government needs to know that survival has become a struggle for Nigerians. We are basically trying to survive. Life is hard. The new President should try and make life easy for us” Pat Amami said.
Frederick Ejighe, a motorcyclist who affirmed that the subsidy removal has heightened tension and anxiety as most Nigerians are currently in a state of confusion, expressed worry over its impending impact on businesses.
“Transportation cost will definitely rise and that will affect the cost of items. I worry that we may get to a point where survival will be extremely hard. I have faith in the government of Bola Tinubu and I understand that the subsidy removal has some far-reaching economic benefits for Nigeria but I worry about the immediate impact” he said.
According to the National Bureau of Statistics (NBS), inflation rate increased to 22.04 per cent on a year-on-year basis in March 2023 for the third consecutive time.
However, with President Tinubu’s determination to revitalize and stimulate economic growth through infrastructural development and favourable policy formulation, there is renewed hope for Nigerians.
According to the President, his administration will address concerns about double taxation as well as other issues that are inimical to the growth of businesses in the country.
He announced thus:” I have a message for our investors, local and foreign: our government shall review all their complaints about multiple taxation and various anti-investment inhibitions. We shall ensure that investors and foreign businesses repatriate their hard earned dividends and profits home.
“Budgetary reform stimulating the economy without engendering inflation will be instituted. Electricity will become more accessible and affordable to businesses and homes alike. Power generation should nearly double and transmission and distribution networks improved. Industrial policy will utilize the full range of fiscal measures to promote domestic manufacturing and lessen import dependency” he added
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