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Disbursing N500bn to 12m homes won’t suffice

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By Abdulwasiu Usman

Aftermath of subsidy removal is affecting millions of Nigerians.

The hardship facing Nigerians, as a direct consequence of subsidy removal, has been brought to the spotlight by Africa Leadership Group (ALG), a citizen-centric and effective governance leadership organization, criticizing President Bola Tinubu swift decision to end fuel subsidy. ALG further voiced their displeasure on the matter in a press release signed by Lara Gureje-Oderinde, ALG Director of Publicity and Media Relations. It stated that the current administration’s plan to distribute N500 billion to 12 million households over the course of six months does not go far enough in addressing the underlying problems and consequences of the subsidy removal.

According to the statement, millions of Nigerians have grown concerned pertaining to the aftermath of the decision to end the petroleum subsidy, such as the spike in the cost of virtually everything from food to transportation. This has made it hard for average Nigerians to earn a living. Rising domestic fuel prices have an effect on household financial well-being in two distinct ways; in the first place, households are experiencing the effects of the increase in the price of fuels used for everyday activities like cooking, heating, lighting, and transportation.

48.7 percent of the fund should be invested in modular refineries.

Secondly, rising fuel prices have a knock-on effect due to the fact that it inevitably raises production costs and consumer prices for other goods and services purchased by consumers. The Africa Leadership Group, established by Pastor Ituah Ighodalo to cater to the calls for aid from Nigerians, polled the populace to assess public sentiment. The survey found that some analysts believed that the strategy cannot effectively address the basic difficulties and cannot suffice to cater for the people’s needs.

Rather than providing incentives to 12 million households, the group proposed three main parts pointed out by the citizens where the 500 billion naira could be adequately utilized. It said 48.7 percent of the fund should be invested in modular refineries to generate new employment opportunities. 48.1% should be invested in either manufacturing or agriculture, with concentration on SMEs and smallholder farmers. While 41.7% should be allocated to subsidize commercial transportation or fund the purchase and distribution of new buses to States to lessen the effect associated with transportation.

Populace welfare and food provision should be at the forefront.

Furthermore, the polled participants proposed concentrating on food security efforts, investing in regions hit hard by terrorism, subsidizing electricity bills, and providing funds to the poor in a transparent manner. The statement also noted that a gradual elimination of subsidies would have been preferable because it would have given people more time to prepare financially. This has strongly impacted my family’s welfare and even forced some to abandon their vehicles due to the skyrocketing fuel price.

With the aim of improving food security and decreasing reliance on imports, ALG claims that the government should explore investing part of the 500 billion naira in climate-smart agriculture pilot food production initiatives in various geopolitical zones. The populace welfare and food provision should be at the forefront. Planning and executing actions to alleviate the immediate effects of the subsidy elimination while simultaneously investing in long-term solutions can ensure a fair and equitable transition towards a sustainable and economically secure future.

ALG suggested boosting investment on healthcare, education.

To effectively create and win public support for any relief programme, it is essential to first identify who stands to gain from fuel price increases and how that will affect their welfare. The negative effects on low-income households highlight the urgency of taking precautions to safeguard those households. ALG suggested boosting investment on healthcare, education, and infrastructure as high-priority areas as well as extending existing safety net programmes with possible improvements in targeting to help the poor.


Related Link

ALG: Website


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Ask Nigeria
Admin
4 months ago

Disbursing N500bn to 12m homes won’t sufficeAftermath of subsidy removal is affecting millions of Nigerians.  – Express your point of view.

Abusi
Abusi
Member
4 months ago

How will this disbursement help the people?
There is need for immediate impact on the people. If households cannot be affected immediately, then the way of disbursement should not be adopted.

Adeolastan
Adeolastan
Member
4 months ago

I completely agree with your point of view that the aftermath of subsidy removal is affecting millions of Nigerians. While the government’s efforts to disburse N500bn to 12m homes is a good start, it may not be sufficient to address the widespread impact of subsidy removal.

It’s important for the government to continue to find ways to support those who are struggling as a result of this policy change. The government needs to listen to the concerns of the people and take action to help those who are most affected. There are many ways that the government could provide support, such as creating job opportunities, increasing access to healthcare, and providing financial assistance to those in need.

I believe that it’s important for the government to take a comprehensive approach to addressing the effects of subsidy removal. This will require a lot of effort and resources, but it’s essential to ensure that all Nigerians have access to the resources they need to thrive. I hope that the government will take the necessary steps to support those who are most affected by this policy change.

Haykaylyon26
Haykaylyon26
Member
4 months ago

Disbursing of money to people will not solve anything how much can they disburse for people that will be enough to take care of themselves something should be done and make things less from how things are high then people cam enjoy

Taiwoo
Taiwoo
Member
4 months ago

the government need handle the consequences of subsidy removal . by Making ensuring that all Nigerians are access to the resources they require to make use of things are really cost since the subsidy removal people are unable to get what they want The government needs to support people who are suffering due to the subsidy removal

Kazeem1
Kazeem1
Member
4 months ago

What can this disbursed money do for people when most goods are very cost people are suffering due to Aftermath of subsidy removal necessary step should be done so people suffering can be lessen

SarahDiv
SarahDiv
Member
4 months ago

The sudden removal of Fuel subsidy has increased the hardship of Nigerians leading to increase in production costs and livelihood without seeing alternatives to cuisine the effect.
Gradual subsidy elimination, diversification of the economy, social safety nets provision, investment in infrastructure, food security initiatives, targeted support, more importantly transparency in governance, public awareness, and full participation of our government should have been done ti solve this problem.