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Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC - Politics - Nairaland

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Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by Godszilla: 6:46am On Sep 04, 2023
Lagos feels different, the boisterous - often chaotic - energy that drives Nigeria's commercial centre has been subdued by the removal of a fuel subsidy that had kept the price of petrol low for decades in Africa's largest economy.

Since June, fuel costs have tripled, leading transport fares to shoot up and forcing many employees to return to the pandemic era by working from home.

Many private cars are off the roads. And with fewer passengers to tussle over, some of the yellow, fume-belching buses, pride of the city's eternal hustle spirit, now idle at motor parks.

The notorious miles-long traffic jams have drastically reduced.

This bustling city of an estimated 20 million people is quieter, but for once that is not a good thing.

What Lagos has gained in tranquillity it has lost economically since President Bola Tinubu abruptly ended the supply of cheap fuel in his first day in office at the end of May.

Oil-rich Nigeria, he said, could no longer afford to subsidise petrol which was costing billions of dollars a year.

Mr Tinubu also ended currency restrictions that had been put in place by the previous government, and while many experts agree that it was the right thing to do, it has led to a weakening of the local currency.

The double whammy of rising fuel costs and a weak currency has sent the economy into a tailspin, and nowhere is the biting hardship more apparent than in Lagos - a commercial behemoth that is often a snapshot of the rest of the country.

Many small businesses have packed up, and some low-income earners who live in the suburbs of the mainland and commute to the business districts on Lagos Island have stopped going to work.

"I was spending 600 naira a day on transport, it jumped to 1,000 naira. By the end of the month I was spending all my salary on transport," a cleaner said, adding that she had been forced to resign from her job.

She lives in Ikorodu, a congested part of Lagos state, which is popular with low-income earners.

Previously, the 41km (25 miles) between Ikorodu and upmarket Victoria Island took two-three hours during rush hour. Now, it can be done in 45-50 minutes.

Recent data from the National Bureau of Statistics showed that when compared to the second quarter of 2022, the contribution of road transport to the economy within the same period this year fell by around 47%.

As that data only captured one month since the policy changed, things could be even worse now.

That economic hit would have been mostly felt in Lagos, home of Nigeria's busiest port and the city that the Nigerian president prides himself on building.

He was right to remove [the] subsidy but not at this time, not without fixing the refineries," said professor of Economics Uchechi Ogbuagu. Because Nigeria's oil refineries are not functioning, most fuel is actually imported.

"An essential commodity like energy - if you tamper with the price, there will be a multiplier effect," he said.

What to do with the expensive fuel subsidy was one of the major talking-points before elections earlier this year, with almost all economists and politicians agreeing that it had to go.

Nigeria was spending money it did not have to keep fuel prices low and it was no longer sustainable, the arguments went.

Previous investigations found that the system was riddled with corruption, and as was evident after it was stopped, a large portion of the subsidised fuel was smuggled to neighbouring countries where it was sold at higher rates.

Some experts and government agencies argued that the fuel subsidy benefited rich Nigerians more than the poor, while opponents said removing it would inflict hardship on the latter group.

But even among those who wanted the subsidy gone was an admission that it needed to be done in phases, certain things had to be put in place first.

The labour unions wanted the local refineries working, the main opposition wanted government to get out of the oil-importation market.

Others asked for subsidised transportation - especially to move farm products, and there were also questions about how the money saved would be used.

But despite having some of these in his manifesto, Mr Tinubu used an off-the-cuff remark in his first speech as president to remove the subsidy, initially sending the system into shock before prices went up.

"I was possessed with courage and I said 'subsidy is gone'," Mr Tinubu said of his now-famous remark on 29 May.

"We are tired of feeding smugglers, making few people rich and subsidising the next-door neighbour," he later said at a function in France.

With prices of petrol up, small businesses like the popular motorcycle food-delivery companies, that provided employment to young people, have had to rethink their strategies.

Some workers have been laid off while others like Happiness Emmanuel have resorted to using bicycles for deliveries, a rare sight in the scorching heat of Lagos, where there is a lack of bicycle lanes.

"I make more money and it is less expensive to maintain," he told the BBC at his food court location in the Ikeja area.

Some of his colleagues have also started using bicycles because of the high cost of fuel, he said.

Even the city's Bus Rapid Transport, which recently added electric buses to its fleet, has seen an upsurge by as much as 30%, a spokesman told the BBC.

This was helped by prices that were halved by the government, he said.

The state is also commencing operations on its metro system on Monday, and its affordable fares should get more residents on the move again.

President Tinubu announced in early August that more than 1 trillion naira ($1.3bn; £1bn) had been saved since subsidy was removed - money that otherwise would have gone to "smugglers and fraudsters", he said.

He acknowledged the hardship, asked people to "look beyond the present temporary pains," and assured that saved funds would benefit families.

Tuition loans have been introduced for poor families with children in university and talks are ongoing for the minimum wage to be raised.

The government has also distributed grains, announced plans to convert cars from fuel to gas, while some states have introduced electric buses.

For some, the current realities put an end to the arguments about who benefits from the fuel subsidy. Many want it back and now argue that fuel subsidy is not a bad if it can be ring-fenced from corruption.

"Subsidy, if implemented well, benefits all," said Prof Ogbuagu.

"Everybody was buying fuel at the same price. The poor may not have lots of TVs and fridges, but transport fares would be low," he said.

Mr Tinubu has assured that there are no further plans for petrol prices to rise - which ought to happen as the naira weakened further - all but signalling that the subsidy was back.

He has also announced his cabinet, filling up important posts that are crucial in driving the economy.

It demonstrates how difficult it is to do away with what is a popular policy, even for President Tinubu who has often boasted of having the will to carry out difficult decisions.

He will not be the first Nigerian president to walk back on the scrapping of the fuel subsidy, though predecessors faced far stiffer opposition, such as nationwide protests in 2012.

There have been pockets of protests in some states against the hardship and the labour unions staged lacklustre demonstrations but they barely registered.

Such demonstrations have often kicked off in Lagos in the past, with other parts of Nigeria feeding off its energy to join in.

But for once, the city that never sleeps is low on fumes, literally and metaphorically.
https://www.bbc.com/news/world-africa-66652771.amp

8 Likes 2 Shares

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by Wodu89: 7:27am On Sep 04, 2023
The entire nation got changed. You can travel from Lagos to Kaduna or Abuja now without experiencing a single holdup. It has never ever been this way before now

133 Likes 10 Shares

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by Zionmdde: 7:34am On Sep 04, 2023
Yeah raise the fuel price to 2k per litter so only celebrities and politicians will have their cars on the road. That will translate to no hold up and minimal pollution

Idiots

265 Likes 25 Shares

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by helinues: 7:47am On Sep 04, 2023
No offense but to drive on Lagos roads, you must be a mad man

202 Likes 5 Shares

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by suckmedownthere(f): 7:54am On Sep 04, 2023
Sold a car and bought a bicycle and kept the excess in the bank account.....

37 Likes 3 Shares

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by oluseyiforjesus(m): 8:07am On Sep 04, 2023
There is selfishness in this topic.....

13 Likes

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by Wealthoptulent(m): 8:08am On Sep 04, 2023
Lolz..
Nigerians are going to be practicing Europe/UK styles now.. cars for weekend only, we jump bus & Train with our Pass card.. LOW EMMISION ZONES cheesy . ... dem say we suppose live longer now .
Lagos has Cowries jus like Oyster card in London... make every state begin develop names for cards

Calitoscassius:
So people still uses this card? lipsrsealed i have not being on the tube for 20 years.
not only tunes bros.. even National rail that falls in the zone you going within London upto Watford [zone 9]...

22 Likes 3 Shares

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by GlorifiedTunde(m): 8:08am On Sep 04, 2023
Subsidy removal induced disappearance! 😂😅

10 Likes 1 Share

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by MrsTwrite(f): 8:08am On Sep 04, 2023
For one to reside in Lagos, he or she must be an agbero. Lagos is not for the weak at all.

31 Likes 2 Shares

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by StudyCrestLtd: 8:09am On Sep 04, 2023
Reality of a developing nation and a feature of a developed nation. Nothing is cheap in a developed nation

18 Likes 1 Share

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by opamoses1: 8:09am On Sep 04, 2023
Inflation would end up going down with less liquidity in the economy.

7 Likes 2 Shares

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by TOPCRUISE(m): 8:09am On Sep 04, 2023
Agbadorians are happy about it. Wicked people.

53 Likes 6 Shares

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by Padipadi(m): 8:09am On Sep 04, 2023
Tough times never last but tough Nigerians do.

7 Likes 3 Shares

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by oloriooko(m): 8:09am On Sep 04, 2023
yeah the roads are deserted thanks to subsidy removal now the rich can have free ride anytime anywhere

7 Likes 1 Share

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by foleskay(m): 8:09am On Sep 04, 2023
undecided
Quality of life in Nigeria keep going down the drain and people getting miserable everyday. Even some rich middle class are beating down their standards. Many families now ration food. Only God knows the number of pupils and students who will drop out or enroll in public school this September.

I even saw on Facebook a post where a corn seller sells half roasted corns so people can afford them. Wtf. Four years is a long ride ooo.
I read this morning a man died of starvation in kano. Lord which way angry

38 Likes 3 Shares

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by iCauseTrouble: 8:10am On Sep 04, 2023
grin
Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by MrsTwrite(f): 8:10am On Sep 04, 2023
helinues:
No offense but to drive on Lagos roads, you must be a mad man

I swr.
Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by Reelmii: 8:10am On Sep 04, 2023
grin...everybody dey feel am grin...i no dey hear I CAN FEED YOU AND UR GENERATION...again grin grin grin

Na now i dey find who can feed me and my generation grin grin grin....

74 Likes 2 Shares

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by Okortor: 8:10am On Sep 04, 2023
Yes disappeared but this morning is entirely different, I've been driving since 7am from mainland to island yet haven't gotten to the office as we speak. Prolly cos of school resumption because prior to now , driving has been super sweet lately......

34 Likes 2 Shares

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by Tunde835(m): 8:10am On Sep 04, 2023
Crazy
Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by Parachoko: 8:10am On Sep 04, 2023
The Reduce traffic jam in Lagos is a Good News.

One can drive from VI to Mile 2 without spending up to 5mins in Traffic

45 Likes

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by LegallyBlunt: 8:11am On Sep 04, 2023
This bustling city of an estimated 20 million people is quieter, but for once that is not a good thing.

I bolded the above for emphasis sake, that's because as a people, the polices of those in power always come lopsidedly against the common man. Who uses those buses and private cars to hustle? You and me!

Like the article stated, we all expected that the subsidy and economic changes would be done in phases. Sadly, Lagos epitomizes what the whole country is feeling at the moment.

People are basically trekking everywhere. The decision to even leave your house costs 1k alone. Which way for us?

IT'S NOT A QUESTION OF MANDATES ANYMORE.

WETIN YOU DEY CARRY THE MANDATE DO?

Before you quote me, please consider that I'm a Nigerian first before any party or political affiliation.

20 Likes 1 Share

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by specialmati(m): 8:11am On Sep 04, 2023
grin grin grin grin grin grin grin its good joor. very soon cars will be very cheap shocked shocked shocked shocked shocked shocked

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Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by Judolisco(m): 8:11am On Sep 04, 2023
Nobody dey comut again na

4 Likes

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by inoki247: 8:11am On Sep 04, 2023
People saving cost left nd right...


All this 4plug V6, V8 argument noise sef don rest....

27 Likes 1 Share

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by JASONjnr(m): 8:11am On Sep 04, 2023
I believe we have the right to decide what policy we should use as a country without BBC interference.


The subsidy removal must have wrecked British and America that they want to use their useless media platform to criticise the policy...


We called them during EndSars but they removed to interfere..... So why are they coming to take paracetamol on our head?

10 Likes

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by Larrysung(m): 8:11am On Sep 04, 2023
What a write up!

5 Likes

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by DMerciful(m): 8:12am On Sep 04, 2023
Traffic reduction as a result of hardship is not a good thing

15 Likes

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by Messileo10000: 8:12am On Sep 04, 2023
..
Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by Funkyswagzz(m): 8:12am On Sep 04, 2023
StudyCrestLtd:
Reality of a developing nation and a feature of a developed nation. Nothing is cheap in a developed nation

Can you compare the value of there currency to yours.

6 Likes

Re: Lagos Traffic Jams Disappear But This Isn't Good News For Nigeria - BBC by emmabest2000(m): 8:12am On Sep 04, 2023
BBC don become monitoring spirit


This too shall pass

4 Likes 2 Shares

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