The recent surge in the price of fuel across the country has worsen the country’s cost of living crisis as households struggles to keep up with the rising cost of goods and services.
Over the past year, Nigerians have been struggling to afford basic needs and desperately seeking financial support as inflation erodes household incomes.
The situation has continued to worsen shortly after Tinubu resumes office with prospects of more due to the recent hike in fuel prices.
On Monday, May 29, President Bola Tinubu announced during his inaugural speech the removal of the petrol subsidy.
“Fuel subsidy is gone. The subsidy can no longer justify its ever-increasing costs in the wake of drying resources,” he said.
“We shall instead re-channel the funds into better investments in public infrastructure, education, health care, and jobs that will materially improve the lives of millions,” Tinubu said.
Barely three hours after the speech, fuel prices across the country increased to 617/litre
Since the announcement, commuting has been difficult for many Nigerians. Transport fares for commercial vehicles have doubled and buses have been scarce. Nigerians now spend a lot of time queuing at petrol stations for fuel.
Fuel drives our economy so you can imagine the effect of the recent surge.
I usually pay #2000 from Okene to Ayingba but I paid #5000 because of the recent surge in fuel prices.
Nigeria’s inflation at 22.22 percent in April is far outpacing wage growth, according to data from the National Bureau of Statistics.
Food prices are up by over 150 percent, and transportation costs have almost doubled respectively year-on-year, according to BusinessDay’s market checks.
With food inflation hitting 24.61 percent, the key driver of Nigeria’s core inflation as over 90 percent of the country’s working population spends 60 percent of their income on food and related expenses, analysts say.
An FAO 2023 report, said 25.3 million Nigerians are food insecure, and malnutrition rates in most northern states have more than doubled.
Analysts believe that the removal of the petrol subsidy will cause inflation to surge and cause the cost of living to rise in the short term but foresee a long-term benefit.
Fuel price hikes have a negative impact on our economy, especially in a country like Nigeria where fuel is a critical commodity and cost of living is still a major crisis. As fuel prices increase, it has led to higher transportation costs, which in turn has increase the cost of goods and services. This can lead to inflation and reduced purchasing power for consumers. Additionally, it can lead to a reduction in economic activity and investment, as businesses may be less likely to invest in new projects or expand operations.
Many Nigerians are already living in fear of what this means to their standard of living.
– Ibrahim Michael Adinoyi
300 Level, Mass Communication Department,
Prince Abubakar Audu University Anyigba, Kogi State.
