Economy
Subsidy Removal: FCT Residents Want Govt to Increase Purchasing Power of Workers
As the removal of fuel subsidy continues to negatively impact Nigerians, residents of the Federal Capital Territory (FCT) say there is a need for government to increase their purchasing power.
The residents said this in an interview in Abuja on Sunday.
Some residents said most of their income was spent on buying fuel, leaving them with very little to meet other needs.
NAN reports that President Bola Tinubu announced the removal of fuel subsidy on May 29 while delivering his inaugural speech.
After the president made the announcement, the price of petrol shot up from N195 per litre and currently sells for between N637 and N660.
The recent Petrol Price Watch for October 2023 released by the National Bureau of Statistics (NBS) said the average retail price of a litre of petrol increased from N195.
29 in October 2022 to N630.63 in October 2023.The NBS said the October 2023 price of N630.63 represented a 222.92 per cent increase over the price of N195.29 recorded in October 2022.
The increase in the price of petrol has caused a hike in the prices of food items, transportation, and goods and services across the country.
Joanna Madu, a public servant said the removal of subsidy was consuming most of her salary which had become insufficient, describing the situation as unsustainable.
“It has not been easy with the removal of fuel subsidy. Before the removal, N5, 000 fuel could last me for three days but now that N5, 000 is like buying N1,000 fuel.
“So for two days, I need to buy N12,000 fuel. By the time I come from Karu to town, and do some moving around, I need to buy fuel the next day. This is not sustainable.
“It is not like the salary of government workers has increased. Fuel subsidy has made it so that my salary is not enough for me, and fuel is consuming almost all my salary.
“The government needs to do something. Nigerians are really suffering, everywhere you go people are complaining and it has affected the price of everything,” she said.
Tinuke Afolabi, a civil servant said the removal of fuel subsidy had made it impossible for her to save and afford some of her needs
Afolabi said the government needed to increase the salaries of workers as a way to alleviate the impact of the fuel subsidy removal.
“I earn N140,000 monthly and I use almost N80,000 to buy fuel in a month. What is left for me to save after buying food which is on the increase every day, and paying for light, water, and other bills.
“I am surviving by the grace of God. One cannot even live a good life anymore because the quality of the lives of Nigerians is deteriorating.
“People cannot afford to buy good food. This festive season will be dry for many Nigerians,” she said
Mr Emma Attah, a public servant, said the removal of fuel subsidy was having a psychological impact on relationships.
Attah said that the government needed to increase the purchasing power of Nigerians by indexing the salaries of workers, that is increasing their salaries.
“People are so frustrated that they have to pay double for commercial transport that they are not even considering the driver who needs to buy the fuel at such a high rate.
“Imagine a family of five, like mine, I have water, electricity, and health bills; there are school fees, house rent, and most importantly feeding costs. How does one cope after spending almost all the income on just fuel?
“In other countries of the world, when prices increase, the government indexes the salaries of workers, that is, increases the salaries of workers.
” In Nigeria where there is serious inflation, the government is supposed to increase the salaries of workers to align with the present reality caused by subsidy removal.
He said the government needed to be sensitive to the plight of citizens and ensure the welfare of Nigerians.
“It is not about palliatives, after using palliatives for a few days, what happens next?
“Government should increase the purchasing power and index the salaries of Nigerians so our quality of life does not continue to nose dive,” he said.
Ngozi John, a trader, who said the removal of fuel subsidy had affected the prices of food items, added that many of her customers could not afford to buy in large quantities.
“Before, some of my customers would buy in baskets, or mudus now they say they cannot afford it. So they buy a half basket, half mudu while some buy in very little quantity.
“I thought with the festive season, sales would be better but it is not so. My customers are complaining that there is no money. The whole thing is affecting all of us, she said. ”
Francis Chukwuma said the removal of the subsidy had affected his business and made him adjust his budget on other items.
“The removal of the fuel subsidy made me adjust a lot of things so that I can fuel my car, any budget I am doing is fuel that is the priority.
“It is affecting me but I cannot do without fuel. I need my car to move around because of the nature of my work and to fuel my generator in the office because of the poor power situation in my area.
“The little profit I make I use most of it for fuel, so I have little to take home to my family for other expenses. We know the prices of everything have gone up, especially food which is on a steady increase.
“This situation with the subsidy cannot be sustained, Nigerians are barely surviving, the government should put things in place, like cheaper transport, and ensure there is power for businesses to operate.
“Imagine people paying so much to transport themselves to work and when they get to work, no light to work, no money to buy fuel, It is disheartening, ” he said.
Nancy Benjamin, a retired civil servant, said retirees have been suffering for a long time and the removal of fuel subsidy had only worsened their plight.
Benjamin said many retirees could not afford to treat themselves when they had health issues leading to the death of many of them
She called on the government to be more sympathetic to retirees plight having served the country for years.
“In developed countries, the welfare of the retired and elderly are taken care of. Why can’t the government look into our welfare? The government can give us subsidised health care and free transportation.
“These are things that can help us so we can channel our pension to things like feeding, as the cost of food items also is on the increase. Many retirees still have children in school too,” she said. (NAN)
The Nigeria Customs Service (NCS), Federal Operation Unit (FOU), Zone D, has seized smuggled goods worth over N110 million between April 20 till date.
The Comptroller of Customs, Abubakar Umar, said this at a news conference on Tuesday in Bauchi.
He listed the seized items to include 11,200 litres of petrol; 192 bales of second hand clothing, 140 cartons of pasta, 125 pairs of jungle boots, 47 bags of foreign parboiled rice and 9.
40 kilogramme of pangolin scales.Umar said the items were seized through increased patrols, intelligence-led operations, and strengthened inter-agency collaboration.
The comptroller said the pangolin scales would be handed over to the National Environmental Standards and Regulations Enforcement Agency (NESREA) for appropriate action, while the seized petrol would be auctioned, and the proceeds remitted to the federation account.
He attributed the decrease in smuggling activities of wildlife, narcotics, and fuel to the dedication and professionalism displayed by the personnel in line with Sections 226 and 245 of the NCS Act 2023.
The comptroller enjoined traders to remain law abiding, adding the service would scale up sensitisation activities to combat smuggling.
“We remain resolute in securing the borders and contributing to Nigeria’s economic development,” he said.
The FOU Zone D comprises Adamawa; Taraba, Bauchi, Gombe, Borno, Yobe, Plateau, Benue and Nasarawa. (NAN)
The UN Department of Economic and Social Affairs (UN DESA) has said that the global economy stands at a fragile turning point amid escalating trade tensions and growing policy uncertainties.UN DESA, in a report published on Thursday, stated that tariff-driven price pressures were adding to inflation risks, leaving trade-dependent economies particularly vulnerable.
It stated that higher tariffs and shifting trade policies were threatening to disrupt global supply chains, raise production costs, and delay key investment decisions – all of this weakening the prospects for global growth. The economic slowdown is widespread, affecting both developed and developing economies around the world, according to the report.For instance, in the United States, growth is projected to slow “significantly”, as higher tariffs and policy uncertainty are expected to weigh on private investment and consumer spending.Several major developing economies, including Brazil and Mexico, are also experiencing downward revisions in their growth forecasts.China’s economy is expected to grow by 4.6 per cent this year, down from 5.0 per cent in 2024. This slowdown reflects a weakening in consumer confidence, disruptions in export-driven manufacturing, and ongoing challenges in the Chinese property sector.By early 2025, inflation had exceeded pre-pandemic averages in two-thirds of countries worldwide, with more than 20 developing economies experiencing double-digit inflation rates.This comes despite global headline inflation easing between 2023 and 2024.Food inflation remained especially high in Africa, and in South and Western Asia, averaging above six per cent. This continues to hit low-income households hardest.Rising trade barriers and climate-related shocks are further driving up inflation, highlighting the urgent need for coordinated policies to stabilise prices and protect the most vulnerable populations.“The tariff shock risks hitting vulnerable developing countries hard,” Li Junhua, UN Under-Secretary-General for Economic and Social Affairs, said in a statement.As central banks try to balance the need to control inflation with efforts to support weakening economies, many governments – particularly in developing countries – have limited fiscal space. This makes it more difficult for them to respond effectively to the economic slowdown.For many developing countries, this challenging economic outlook threatens efforts to create jobs, reduce poverty, and tackle inequality, the report underlines. (NAN)
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, says the Federal Government will soon finalise N1.5 trillion road concession project.
Edun made the statement during a meeting with some private sector investors in Abuja on Wednesday.
He said that the government was on the verge of finalising the landmark N1.
5 trillion road concession project, launched in 2021 under the Highway Development and Management Initiative (HDMI).The minister said that the initiative aimed to involve private sector partners in the reconstruction and management of nine major highways across the country, spanning approximately 900 kilometers.
He said that the partners had almost completed all arrangements for the highways, which they would finance, rebuild, and maintain under 25-years concession agreements.
Edun said that the concessionaires were expected to recoup their investments through tolling fees.
“We met the concessionaires who have virtually concluded all the agreement arrangements for nine roads, nine major highways, which they are contracting to refinance the rebuilding of and to recover their funds from tolling fees under 25-year or so agreements.
“And we met them to iron out the remaining administrative obstacles for the kicking off construction of these roads,” he said.
Edun said that the substantial private sector investment would bridge budgetary gaps.
He added that it would also allow investors to undertake revenue-generating projects, leveraging their expertise and resources for long-term implementation and maintenance.
“Thereafter, it will be a question of signing the addendums and moving to the site.
“As you know, already the 125-kilometer Benin–Asaba Highway concession agreement has been signed. The addendum has been signed.
“All arrangements have been finalised, in fact, the ministry of works have handed over the road to the concessionaires.
“They have already started the preliminary arrangements for reconstruction of that road in place of a 10 lane highway.
“It is an investment, it’s a project and an initiative that will reduce the travel time between Benin and Asaba right up to the Niger Bridge,” the minister said.
Edun said that the Benin–Asaba Highway project, which has already commenced, is expected to reduce travel time between Benin and Asaba from four hours to one hour, significantly enhancing productivity and efficiency in the region.
He described the HDMI, launched in 2021, as a strategic programme by the federal government aimed at attracting private sector investment to improve Nigeria’s federal road network.
Edun said that the initiative seeks to address the challenges of inadequate funding and maintenance by leveraging Public-Private Partnerships (PPP) to develop and manage road infrastructure.
Under the HDMI, 12 highways were initially selected for concession, covering a total of 1,963 kilometers.
These roads include Benin–Asaba, Abuja–Lokoja, Kano–Katsina, Onitsha–Owerri–Aba, Shagamu–Benin, Abuja–Keffi–Akwanga, Kano–Shuari.
Others are Potiskum–Damaturu, Lokoja–Benin, Enugu–Port Harcourt, Ilorin–Jebba, Lagos–Ota–Abeokuta, and Lagos–Badagry–Seme roads.
The minister said that the initiative was projected to generate over 50,000 direct and 200,000 indirect jobs, contributing significantly to the country’s economic growth and development.
The Minister of Works, Engineer David Umahi who joined the meeting virtually reassured the private sector partners on the HDMI of the federal government commitment.
He said that everything possible would be done to resolve the contending issues, adding he will soon be back to address all pending issues.
One of the concessionaires, Mr Kola Karim, representing Shoreline, emphasised the need for right and enforceable documents stipulating the takeoff and handover dates, which would attract investors to invest their funds.
Other private sector partners also requested for the addendum to the original agreement to be signed that would enable toll sections of the completed highways while work was in progress on other sections.
They noted that each concessionaire has unique challenges that should be dealt with accordingly.
Also in the meeting were Minister of Budget and Economic Planning, Abubakar Bagudu, and the Director General Infrastructure Concession and Regulatory Commission (ICRC), Dr Jobson Ewalefoh
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