Nigerians recount economic realities three years after subsidy removal

By Abubakar Yunusa

Three years after the removal of petrol subsidy by President Bola Tinubu’s administration, many Nigerians say the policy has worsened their economic conditions, forcing households to make difficult choices as the cost of living continues to soar.

Across the country, workers, traders and low-income earners have expressed frustration over rising transportation costs, expensive food items and shrinking purchasing power, insisting that their incomes have failed to keep pace with inflation.

Speaking with Peoples Daily, Anabel Idowu said life had become increasingly difficult since the subsidy was removed.

According to her, the policy triggered sharp increases in the price of Premium Motor Spirit(PMS), which subsequently affected virtually every sector of the economy.

“Incomes have not kept pace with the rising cost of living. When the subsidy was still in place, things were better. Now, everything has become worse. The most painful aspect is that many Nigerians do not even know what the subsidy savings are being used for,” she said.

Idowu noted that food prices, transportation fares and household expenses had risen dramatically, adding that products previously sold for a few hundred naira now cost several times more.

She argued that the removal of subsidy had negatively affected her finances and lowered her standard of living.

Another respondent, Michael Audu, described the impact of the policy as devastating, saying inflation had eroded the value of money and pushed many families into economic hardship.

He said many households that previously enjoyed three meals daily now struggle to afford two or even one meal.

“The standard of living we once considered normal has declined significantly because many households can no longer afford basic necessities,” Audu said.

According to him, the rising cost of education, transportation, feeding and other essential services has forced many Nigerians to adopt a more modest lifestyle.

He added that parents who once enrolled their children in relatively expensive schools are now seeking cheaper

alternatives because of financial constraints.

A trader, Suleiman Ismael, also lamented the economic realities facing Nigerians, saying the subsidy removal had made people more cautious with spending.

He explained that a monthly budget that previously sustained a household now requires more than double the amount to cover basic needs.

“Transportation costs skyrocketed, food prices increased and utility bills became more expensive. Whatever income many people earn now goes into meeting immediate needs, leaving little or nothing for savings,” he said.

Ismael noted that the development had affected the ability of many young Nigerians to invest in skills acquisition and career development, particularly in the technology sector where training and certifications often require substantial financial commitments.

While many Nigerians continue to complain about the hardship associated with the policy, supporters of the administration insist that the decision was necessary to rescue the economy and fund critical infrastructure projects.

Speaking on behalf of the ruling All Progressives Congress, the Special Adviser on Media and Information Strategy to the party’s National Chairman, Abimbola Oladokun, said the administration had recorded notable achievements despite prevailing economic challenges.

He cited the Lagos-Calabar Coastal Highway, Kaduna-Kano Road and Kaduna-Sokoto Road projects as key infrastructure initiatives aimed at improving connectivity and boosting economic activities across the country.

According to him, such projects would facilitate commerce, create jobs and contribute to long-term national development.

Economic analyst Muhammad Hamza, however, argued that government policies should ultimately be judged by their impact on ordinary citizens.

Assessing the administration’s performance over the last three years, Hamza said Nigerians had endured “three years of policies accompanied by excessive pain.”

He maintained that the removal of subsidy had contributed significantly to rising prices and declining living standards, with many families struggling to afford food and other basic necessities.

The economist also raised concerns about insecurity, questioning whether citizens were safer today than they were before the current administration assumed office.

He pointed to recurring attacks in parts of the country and the continued abduction of women and children as evidence that more needed to be done to improve security and intelligence gathering.

Hamza argued that Nigerians expected governance to deliver tangible improvements in their daily lives, stressing that the true measure of government performance lies in implementation rather than promises.

Despite government assurances that the subsidy removal was necessary to prevent economic collapse and create fiscal stability, concerns persist among citizens, particularly low-income households and vulnerable groups who continue to bear the brunt of rising living costs.

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