By M.B.Musa, PhD
When President Bola Ahmed Tinubu assumed office on May 29, 2023, his administration swiftly removed Nigeria’s long-standing fuel subsidy, leading to a sharp rise in fuel prices. Initially, prices jumped from 200 naira to 500 naira per liter.
This was followed by gradual increases, first to 670 naira per liter, and now, as of late 2023, to over 1,000 naira at most fueling stations.
The removal was presented as a necessary economic reform, yet it has plunged millions of Nigerians into deeper financial hardship.
While the government justifies this move, President Tinubu’s extravagant spending on personal luxuries—including a 5 billion naira yacht, a 150 billion naira presidential plane, and a bulletproof vehicle worth more than 300 billion naira—has fueled public outrage.
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At a time when citizens are being asked to endure economic pain, their leaders seem to be indulging in lavish lifestyles at the expense of public funds.
Meanwhile, many oil-producing countries continue to enjoy lower fuel prices due to government subsidies, further exacerbating frustrations in Nigeria.
Fuel Prices and Subsidies in Oil-Producing Countries
While Nigeria has opted for subsidy removal, other oil-producing countries continue to provide fuel subsidies that allow their citizens to enjoy lower fuel prices.
These subsidies are often seen as a way to share the wealth of natural resources with the population. The following examples highlight countries where fuel prices remain relatively low:
Saudi Arabia: As one of the world’s largest oil producers, Saudi Arabia has historically kept domestic fuel prices low for its citizens through subsidies.
While recent economic reforms have led to modest price increases, fuel remains far cheaper than in Nigeria. As of 2023, fuel in Saudi Arabia costs about 2.33 riyals per liter (approximately 182 naira), a fraction of Nigeria’s current price.
Venezuela: Despite its economic turmoil, Venezuela continues to offer some of the world’s cheapest fuel, thanks to government subsidies. Venezuelans pay as little as 0.02 USD per liter (about 15 naira).
The stark contrast with Nigeria, another oil-producing nation, is glaring, as Venezuelans continue to benefit from heavily subsidized fuel while Nigerians face steep hikes.
Kuwait: Another major oil producer, Kuwait keeps fuel prices relatively low. In 2023, fuel prices in Kuwait were approximately 105 fils per liter (roughly 142 naira).
The government continues to subsidize fuel to keep it affordable for citizens, reflecting a different approach to oil wealth distribution compared to Nigeria.
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Iran: Iran, a major player in the global oil market, has long provided significant fuel subsidies. Even after recent economic challenges, Iranians pay around 15,000 Iranian rials per liter (about 90 naira).
Despite facing international sanctions, Iran still manages to keep fuel prices significantly lower than Nigeria’s post-subsidy price hike.
Malaysia: While not a major oil exporter, Malaysia is an oil-producing country that offers subsidies to keep fuel prices relatively low for its citizens. In 2023, the price of fuel in Malaysia hovered around 2.05 Malaysian ringgit per liter (about 340 naira).
Malaysia’s decision to maintain fuel subsidies reflects a prioritization of public welfare, in stark contrast to Nigeria’s current approach.
Nigeria’s Fuel Price Hikes and Public Outrage
The subsidy removal in Nigeria was justified by the government as an essential step towards freeing up funds for critical infrastructure and reducing the fiscal burden on the state. However, the effects have been devastating for ordinary Nigerians.
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The gradual increase in fuel prices—from 500 naira, to 670 naira, and now over 1,000 naira—has triggered a spike in inflation, leading to soaring transportation costs, higher food prices, and a sharp rise in the cost of living.
Nigerians, already struggling with economic hardship, are now being forced to endure even more pain. The government’s message is one of endurance and sacrifice, urging citizens to bear the brunt of these changes for the promise of long-term economic stability.
Yet, this call for sacrifice is juxtaposed with reports of President Tinubu’s lavish spending, further stoking public anger.
Tinubu’s Extravagant Spending: A Growing Disconnect
The public’s frustration has been further fueled by President Tinubu’s excessive spending at a time when Nigerians are being asked to tighten their belts.
Reports of his purchase of a 5 billion naira yacht, a 150 billion naira presidential plane, and a bulletproof vehicle costing over 300 billion naira have raised serious concerns about the priorities of his administration.
Furthermore, the government’s approval of a 15 trillion naira Lagos-Calabar coastal road project, in which Tinubu’s son reportedly holds a board position, has led to allegations of fiscal mismanagement and nepotism.
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While Nigerians are being asked to endure economic hardship, their leaders appear to be living in luxury. This growing divide between the ruling elite and the masses has left many questioning whether the removal of the fuel subsidy was truly in the nation’s best interest, or simply a means to shift the burden of economic recovery onto the poor while the wealthy continue to benefit.
The Way Forward: Transparency and Accountability
As fuel prices continue to rise, the Nigerian government must urgently address the concerns of its citizens. The funds saved from the removal of the fuel subsidy must be transparently allocated to projects that will benefit the broader population, such as healthcare, education, and infrastructure.
Moreover, President Tinubu and his administration must demonstrate fiscal responsibility by curbing unnecessary expenditures on luxury items.
The examples of countries like Saudi Arabia, Venezuela, and Kuwait show that it is possible for oil-producing nations to manage their resources in a way that benefits the people.
If Nigeria is to overcome its current economic challenges, it must learn from these examples and adopt policies that prioritize the welfare of its citizens.
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Ultimately, the government must recognize that asking the masses to endure hardship while the elite enjoy extravagant privileges is not a sustainable path forward.
Transparency, accountability, and a commitment to shared sacrifice are essential if Nigeria is to achieve economic stability and regain the trust of its people.