Economic analyst and educationist, Mallam Umara Lawan, has expressed concern over the worsening economic hardship in Nigeria, blaming the removal of fuel subsidy by President Bola Ahmed Tinubu for what he described as a sharp increase in poverty and the declining living standards of Nigerians.
Umara made the remarks in an interview with The News Chronicle on Monday in Maiduguri, Borno State, where he argued that the continued absence of fuel subsidy could further worsen poverty across the country.
According to him, the impact of the subsidy removal has been particularly severe on middle-class Nigerians, many of whom, he said, have been pushed into poverty as the cost of transportation, food and other basic necessities continues to rise.
He claimed that poverty in the country has increased significantly since the subsidy was removed, stressing that only a small section of the population, particularly some members of the elite, are benefiting from the current situation.
Umara further expressed concern over the increasing pressure on workers’ salaries, saying that a significant portion of the earnings of civil servants is now being spent on transportation alone.
He noted that after transportation expenses and other daily costs are deducted, many workers are left with insufficient income to adequately provide food and other basic needs for their families.
“There is no need to go with the removal of subsidy because Nigerians have suffered a lot from day one of President Bola Tinubu’s administration,” Umara said.
He argued that the government should reconsider the decision, insisting that Nigerians have yet to see sufficient benefits from the policy despite the economic reforms introduced by the administration.
According to him, the removal of subsidy has also contributed to the closure of several businesses and increased the number of Nigerians seeking opportunities outside the country.
“A lot of companies have closed and a lot of people have left the country as a result of subsidy removal,” he said.
Umara questioned the argument that restoring fuel subsidy would necessarily cripple the Nigerian economy, saying the country had previously operated subsidy regimes under successive administrations.
“Only a few people are enjoying this subsidy removal. What benefit are Nigerians getting from it? I don’t think that revising fuel subsidy will cripple the economy,” he stated.
The analyst also questioned why previous administrations under former Presidents Olusegun Obasanjo, Umaru Musa Yar’Adua, Goodluck Jonathan and Muhammadu Buhari were able to manage fuel subsidy arrangements while completing their respective terms in office.
“Let me ask you, how did Jonathan, Obasanjo, Yar’Adua and Buhari manage the subsidy and complete their tenures?” he asked.
He argued that Nigerians should be allowed to examine alternative approaches to managing the petroleum sector and reducing the burden of fuel prices on households and businesses.
Umara also questioned why some political candidates who have promised to reintroduce fuel subsidy are being criticised for making such promises.
He suggested that the renewed debate over subsidy was largely driven by the economic consequences Nigerians have experienced since its removal.
“Why are they arguing if some other candidates say they will reintroduce the subsidy? They have known the consequences of fuel subsidy removal. That is it,” he said.
He maintained that the government must urgently address the rising cost of living and the pressure facing ordinary Nigerians, particularly workers whose incomes have failed to keep pace with the rising cost of transportation, food and other essential commodities.
Umara’s comments come amid continuing public debate over the economic consequences of fuel subsidy removal and the best way to balance government spending, petroleum pricing and the welfare of Nigerians.
While the analyst described the removal as a major driver of hardship, his claim that poverty would increase by 1,000 percent is an assertion and would require independent economic data to establish.
He nevertheless called on policymakers to consider measures that would reduce the burden on households and businesses and ensure that economic reforms translate into tangible improvements in the living conditions of Nigerians.
