Ilorin Residents Groan Under the Aftermath of Nigeria’s Fuel Subsidy Removal

Hassein Imam has just concluded his undergraduate studies at the University of Abuja. With fulfilment, he got up one Saturday morning in January, packed his properties and decided to return to his family at Ilorin. The first shock that hit him on arrival came from the motorcyclist who charged N500. Before he left for school, he would not spend up to N200 from the bus stop to his house.

“A lot had changed when I got home. My parents have now left their cars at home. They now climb bikes to work daily,” Mr Imam complained.

On 29 May 2023, President Bola Tinubu deviated from his inauguration speech, declaring, “Subsidy is gone.” Following this announcement, fuel prices swiftly tripled from N197 per litre to N650 per litre. 

The consequences of subsidy removal are being felt nationwide, including in Ilorin, the capital of Kwara state. Removing subsidies has escalated food and transportation prices, further burdening the struggling residents. Currently, Mr Imam is preoccupied with how to afford the average lifestyle he was already accustomed to.

Imam’s case is one among many

Aminat Abdulkadir, a trader in Ilorin, also voiced concerns about the impact that the inflation caused by subsidy removal has had on her business. In addition to increased transportation costs, Mrs Abdulkadir also mentioned a drastic reduction in sales as one of the challenges.

She said: “It has really affected my business, pertaining to Ilorin where I reside. It has been a hectic situation for me, doubling school expenses and business. I live for school every day and deliver goods for my customers.”

Campus Reporter also spoke to Abdulganiyu Taiye, an aluminium engineer who gave his own share of the difficult experiences.

“The effect honestly goes beyond words. I was shocked that the price for a Sliding Aluminium window earlier was N25,000 around January 2023; now it has increased to N37,000,” he complained bitterly.

Mr Taiye begged the government to reduce the price of fuel to ease the challenges that entrepreneurs face. 

Amidst these challenges, Suleiman Abiola, a commercial motorcyclist in Ilorin, wondered how low-income earners survive.

He said that the hike in commodity prices was not on purpose and that road drivers would not do anything to hinder the economy’s progress.

“But how do we survive on our own and take good care of our families if our income is less than our standard of living?” Mr Abiola questioned.

Is fuel subsidy only benefiting the rich? 

Speaking with Campus Reporter, Dr Ahmed Zakariyah, a lecturer at the Department of Economics at the University of Abuja, described the removal of fuel subsidy as favouring the ruling class and causing distress to the majority of citizens. He pointed out that the subsidy removal has led to inflation, increased commodity prices, and lost jobs in the informal sector.

Dr Zakariyah suggests that eliminating the fuel subsidy favours the ruling class, attributing it to their considerable wealth circulation, which results in detrimental consequences for the citizens.

“Removal of fuel Subsidy is a welcoming development in most developed nations, but in Nigeria, it is at detriment to the citizens because it places heavy burden on citizens,” he said.

“It’s of no good to the citizens and economic state of the country as we speak,” he added.