Fuel Subsidy, Electricity Tariff, Students’ Loan in Nigeria, Darkness or Light Ahead?

 By; Bashar Muhammad, U17mm1118

As a result of removal of fuel subsidy, signing of the electricity bill and assenting to the students’ loans act by President Asiwaju Bola Ahmad Tinubu within his first one month in office, many Nigerians start experiencing some life hardship. In what citizens described as dark-days, president Bola Ahmad Tinubu on 29 may 2023 announced the removal of fuel subsidy in Nigeria which mark the end fuel subsidy era in his inauguration speech.

Few hours following the announcement of the subsidy removal by President Bala Tinubu, the fuel push from N195 per liter to over N500 per liter in all fuel stations across the country, which thrown the country into confusion and causes suffering and hardship. Moreover, removal of fuel subsidy causes high increase in prices of goods and services, more especially food commodities, transportation, and in other aspects of human endeavor that are directly or indirectly connected to the price of fuel.

In a speech, President Bola Ahmad Tinubu said, Nigeria cannot afford to continue subsidizing fuel which only few of the Nigerian population benefit from, and they were described as the looters of subsidy, and neighboring countries such as Niger, Chad, Benin and other which they said subsidy is going to, not Nigerians.

Now that fuel price will be determined by market force, as described by the group managing director of NNPC Mele Kyari, what behold the future of prices of things in Nigeria? That is the price may be unstable, because, as of the time of writing this report, the price of fuel is between #617 - #630 per liter across all 36 states in the country, and it increase the hardship face by Nigerians.

On other hand President Bola assures Nigerians that, removal of fuel subsidy would bring extra money to the account of the Federal Government and it would use in other sectors that will benefit all Nigerians.  Some of these sectors include; education, agriculture, power supply, healthcare and transportation among others.

President Bola Ahmed Tinubu

In his words, the president said; “I admit that the decision will impose an extra burden on the masses of our people. I feel your pain.” And the removal of fuel subsidy has led to huge increase of the price of almost everything in the country.

Another major issues that cause the hardship in Nigeria is that of privatization of power sector by government, sign the electricity bill in to law which expect the monopolization of electricity generation, transmission distribution, and 40 percent was the proposed increase in electricity tariff in the country.

When Nigerians are looking forward to get refuge from the removal of fuel subsidy, they wake up with deregulation of power sector which was done to increase the power supply in the country but, the supply didn’t increase but, 40 percent is what was proposed to increase in electricity tariff.

Most small-scale business in Nigeria rely on power supply, but the inadequacy of that power supply has compelled of the to look for other options including solar, and petrol power generators, and the fuel is very expensive not everyone can afford to buy to liter.

This inadequacy of power supply makes many Nigerians lost their jobs, makes them to beg and “majalisa” settlers which causes life difficulties.

One might say the leadership of the country is against the common man because, almost immediately the Signing of the students’ loans act also come with its own consequences. Directly or indirectly the student loan is going to affect the price of school fees if not already doing so. The rate at which school fees in various Tertiary Institutions in the country is hiking is another issue that causes the hardship in Nigeria. On June 12 the president of federal republic of Nigeria Asiwaju Bola Ahmed Tinubu signed into law the students’ loans act. The students’ loans act is aimed to provide easy access to higher education for indigent Nigerian students’ interest-free loans from the Nigerian Education Fund.

If we recall, the students’ loans bill was introduced by the then speaker of 9th House of Representatives, Femi Gbajabiamila, which provides for interest-free loans to indigent Nigerian students, passed the third reading at the House. The student’s loans act is part of the immediate action taken by the president to fulfill the needs of students and also to tackle issues of out schooling in the country as the president promised during campaigns. Although, this students’ loans act is not supported by key stakeholders in education especially Academic Staff Union of Universities (ASUU).

ASUU call on President Tinubu to change the loan to a grant for indigent students insisting that the loans “impracticable and unsustainable”. The union said the conditions for the loan are not practicable, adding that more than 90 per cent of students won’t meet the stringent requirements to access and repay the loan.

Critically, with the introducing of this Students loan act, almost all the universities increased their school fees   with triple price compare to the old fees.  Which result most students dropped their studies and some find it very difficult to pay for fees, a very good example is what of happens at Usman Dan'fodio University, apart from the increase of student fees, the state government pay only half of student’s fess unlike before. And 60 percent of the student poor families who are not afford to pay school fees.

In the first three months of President Asiwaju Bola Ahmed Tinubu, most Nigerians are out of their sense because of the above mentioned three issues more especially removal of fuel subsidy which is not welcoming by Nigerian, the question is that what is the way out for Nigerian? Or we can say “what you wished is what you can see”?

 

Posted at; 8:59pm