Former chairman of the Nigerian Economic Summit Group (NESG), Kyari Bukar has voiced concerns over President Bola Tinubu’s swift removal of the petrol subsidy.
Bukar stated this in an exclusive interview with Channels Television, arguing that the subsidy, which was lifted immediately after Tinubu took office, should have been gradually phased out to ease the burden on Nigerians.
Bukar proposed a more measured approach, suggesting that the subsidy on Premium Motor Spirit (PMS), commonly known as petrol, could have been reduced by 5 percent every six months.
This phased removal, he argued, would have allowed the population to adjust to rising fuel prices over time, rather than facing an immediate and sharp spike in living costs.
“There is a lot of anxiety in the country, and economically speaking, there is also a lot of hunger,” Bukar said.
“People are reacting violently and saying things they shouldn’t because of the rapid implementation of certain policies, including the fuel subsidy removal and the harmonisation of the exchange rates.”
President Bola Tinubu’s decision to end the decades-long petrol subsidy, announced during his inauguration in May 2023, was aimed at freeing up government resources for other critical sectors such as healthcare, education, and infrastructure.
The Nigerian government had been spending an estimated ₦200 billion to ₦300 billion monthly on the subsidy, a figure which experts believe could be better allocated.
However, the sudden removal led to an almost immediate surge in fuel prices, triggering inflation and a rise in the cost of living.
For many Nigerians, already facing economic hardships, the shock was swift and severe. Bukar likened this to the “boiled frog” metaphor, where a frog placed in cold water gradually adjusts to rising temperatures, as opposed to leaping out of boiling water.
He believes the economic shock would have been less acute if subsidy was slowly phased out.
For many Nigerians, the end of the subsidy has translated into immediate hardship. Prices of basic goods and transportation have surged, putting pressure on vulnerable citizens.
Bukar stressed the importance of cushioning these impacts, calling for the use of technology to provide targeted financial relief to those most affected.
He pointed to Nigeria’s existing Bank Verification Number (BVN) and National Identification Number (NIN) systems as effective means of directly delivering subsidies or support to individuals, thus minimising corruption and ensuring the funds reach those in need.
Bukar’s remarks come at a time when Nigeria is grappling with a tough economic landscape, and his call for a gradual approach has added a significant perspective to the ongoing debate around subsidy removal and its long-term impact.
As the country navigates these reforms, there is growing concern over how to balance necessary economic adjustments with the need to protect its most vulnerable citizens from further hardship.
While the Nigerian government is committed to economic reform, Bukar’s arguments highlight the delicate balance between policy and the reality faced by everyday Nigerians.
His proposals for a phased implementation and targeted relief measures offer a way forward that might have lessened the economic blow for millions of citizens.
As the country continues to adjust, the conversation around how to mitigate the effects of such sweeping economic changes remains more important than ever.
