Opinion
Our Faulty Foundation
The founding fathers of this nation built a strong foundation on which they erected three floors. Given the economic enablement of that substructure, the nation thrived and achieved landmarks that put the French behind us in television broadcasting and we led Africa in other areas of human development; we were the reference point for African development. It was such that, at Independence, the colonial masters adjudged Nigeria as one of the developing economies the world should watch. They rated Nigeria at par with India in terms of development capacities and prospects of emerging as a great nation. Then the founding fathers put one more floor and it was okay because the foundation was strong and had the load-bearing capacity to carry such superstructure.
In 1966, a group of misguided and ill-informed men in uniform took over the reins of state and, in response to centrifugal forces, they extended the floors to twelve and, rather unfortunately, they dealt the nation a mortal blow by weakening the foundation; that singular act added the concepts of “commonwealth” and “national cake” to the lexicon of Nigerian politics and heralded the slide down a slippery economic slope. Thus, Nigeria degenerated into a “baaabiyalla” (beggarly) federation. Consequently, heightened disintegrative nationalism took the center-stage of our national discourse all in the quest for a share of the national cake and in response to this, we further increased the structure bit-by-bit to thirty-six floors and a penthouse on the same faulty foundation; and that is why we are where we are today. At a point, we even toyed with the idea of furthering the floors to fifty-four. This was a product of having idiots and tribesmen instead of citizens (in the Greek sense of these words) at the helm of affairs.
Departing from the metaphor of an engineering structure, the truth remains that Nigerians were systematically dispossessed of their land through a string of ill-conceived land use acts. Having been so dispossessed of their basic capital and therefore incapacitated, the people streamed in their droves into government, which became the highest employer of labour and the only thriving subsector of the national economy. Resultantly, the private sector became comatose and the nation degenerated into a government-driven economy. It was only a matter of time before Nigeria acquired the ignominious status of poverty capital of the world.
Now that the youths who are the major stakeholders in Nigeria’s future have woken up from their slumber and docility, it is time to review the foundation of this nation. Decisive and progressive steps must be taken to burrow beneath the faulty foundation and strengthen it such that it is able to carry the humongous superstructure we hoisted on it as a result of disarticulated and narrow-minded leadership that yielded to unremitting disintegrative nationalism.
As a Niger Deltan, I feel pained to the marrow by the double standards of vesting the rights to the gold in Zamfara State in the state while the oil in the Niger Delta is vested in the Federal Government; this is an insult and assault on the psyche of the oil bearing communities of the Niger Delta. However, as a patriotic citizen (in the Greek tradition) of Nigeria, I think that that is a step in the right direction though it stopped short of hitting the necessary target; it is, therefore, a half measure.
Unbridled kleptomania and squandermania coupled with government’s obvious inability to punish culprits since they all live in glass houses indicates that vesting the resources in the state (federal, state or local government) is modus vivendi; that would simply move the point of profligate pilfering from the national treasury to the state treasury.
Government should give back the people their land which it stole through dispossessional laws. The land owners in Zamfara State should be empowered to mine their gold; the people of Igbeti should harness their marble; the people of the Niger Delta should extract their oil and the peoples of various communities in this prodigiously endowed nation should be allowed to harness the resources of their land and pay tax to the various levels of government, which should concentrate on its regulatory role. At this, government will become lean and unattractive for bounty hunters while attracting only those who desire to serve their community and the nation; do-or-die politics will be a thing of the past and the political firmament will become cool. Granted that this thesis has the propensity of creating systemic imbalances and socioeconomic disparities, these can be ameliorated through instituting a discriminatory tax regime such that the agricultural sector pays minimally while the other sectors pay carefully and objectively determined and graded percentages.
I travelled to every continent of the world except Australia before I turned twenty-eight years. Coming home in 1980, I travelled by road and low-altitude aircraft throughout Nigeria. What I saw was (as it still is) a massive mosaic so richly endowed that it has no business with poverty; it was that I averred that no nation on earth is more endowed than Nigeria. This nation is so amazingly gifted it can be what London and Rome are for Caucasians, what Mecca and Medina are for Moslems, what Jerusalem is for the Jews and much more. Nigeria has abundance of natural and human resources to lead Black Africa if only it had citizens at the helm of its affairs.
In his 1776 economic classic titled Wealth of Nations, Adam Smith offered that the wealth of the nations lies in building the capacities of the people and positively engaging them in economic activities; this is the kernel of this thesis. With an economy that is driven by a robust private sector, productive employment will be ensured for the people, business will flourish, tax payers will acquire the capacity to demand accountability from authority figures and government will, inevitably, jettison its iguana syndrome and acquire functional ears. This foundation is the elixir for unbridled kleptomania, illiteracy, mass unemployment, poverty, social unrest and the innumerable malaises that bedevil the Nigerian economy and society; its essence is the capacity to give the private sector a shot in the arm, empower the people and ditch the ignominious status of poverty capital of the world.
Dr Osai is an Associate Professor in the Rivers State University, Port Harcourt.
Jason Osai
Opinion
A Renewing Optimism For Naira
Opinion
Don’t Kill Tam David-West
Opinion
Fuel Subsidy Removal and the Economic Implications for Nigerians
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
By: Amarachi Amaugo
-
Rivers4 days ago
NLNG, NCDMB Launch ICT Hub To Boost Tech Skills In Nigeria
-
News4 days agoResident Doctors Begin Indefinite Strike Nov 1
-
Oil & Energy4 days agoProffer Solutions To Energy Crisis, PTI Urges FG. Stakeholders
-
Business4 days agoCustoms Launches Digital Vehicle Verification System To Tackle Smuggling
-
Maritime4 days agoBoard Approves Disciplinary Actions Against 31 Immigration Officers
-
Oil & Energy4 days agoNMDPRA To Clamp Down On Illegal Oil And Gas Facilities
-
News4 days agoPerm Sec Bags Award Of Excellence
-
Oil & Energy4 days agoHysteria Clashes with Missing Oil Barrels
