The Nigerian government’s recent announcement to end fuel subsidies is a noteworthy policy shift that has elicited a range of responses from various social groups.
Fuel subsidies have been in place for several decades, with the aim of keeping petrol prices affordable for the general population. On the other hand, removing the fuel subsidy could lead to an increase in the prices of petroleum products.
This, in turn, could lead to inflation and reduced purchasing power for consumers. This could have a ripple effect across the economy, impacting the cost of goods and services and even housing.
Recall that, President Muhammadu Buhari announced the removal of the fuel subsidy in June, but it was however, postponed by the federal government during the Federal Executive Council meeting on April 27.
This surfaced again in recent times with the declaration by the newly inaugurated president Bola Tinubu who confirmed that fuel subsidy is gone.
In many independent views, the move would impact land, property, and rental values.
The removal of fuel subsidies is a controversial policy that has significant implications for the Nigerian economy and society at large.
Most densely populated satellite towns in the FCT, have been daunted with increased rents due to the subsidy removal coupled with the recent opening of the Kubwa – Zuba road.
In one of Daily Trust’s reports, a self-contained room in Kubwa that initially cost N100,000–N200,000 per annum (p.a.) is now N150,000–N250,000; a 2 bedroom flat has now gone up from N200,000–N300,000 to N450,000–N500,000; while a 3 bedrooms flat that used to be rented out for N300,000–N450,000 is now between N500,000 and N700,000.
In Lugbe, another satellite town in the FCT, a single self-contained room is now being rented out at the rate of N250,000–N300,000, up from the former cost of N200,000–N250,000. This is just one of many incidents in Abuja.
While the government claims that the policy will save money, reduce corruption and encourage investment in the oil sector, many Nigerians are skeptical about the benefits and worried about the negative impacts on their lives.
The government should consider the plight of these groups and provide adequate support and compensation to cushion the effects of the policy.