₦airaland Forum

When Gunnar Myrdal, in Rich Lands and Poor, warned that laissez-faire economics in poor nations would only magnify inequality rather than ameliorate it, he was merely articulating a timeless truth, such as the Nigerian reality continues to amplify in tragic multicolour!

Myrdal’s distinction between “spread effects” (prosperity radiating outward) and “backwash effects” (prosperity sucked away from weaker regions/sections) was not mere academic surmising; it was seminal dissection of what happens when national governments, through policy pronouncements, abandon basic welfarism credo.

While the state in richer nations deliberately strengthens spread effects through policies that enhance well-being; in poorer nations backwash dominates, as the state consistently abandons whatever policies of good, decent living, leaving misery in its trails.

Nigeria, under President Bola Tinubu, has become the quintessential case study of the ‘backwash’ pathology, where removal of petroleum subsidy has unleashed a regime of surpassing agony upon the populace, widening further the gulf between ‘comfortable’ and ‘comfortless’.

Balance this reality against far enlightened policies of advanced nations. In France, when energy prices surged in 2022, government capped electricity price at four per cent and offered fuel discounts. In Spain, subsidies were introduced for public transport to ease commuters’ burdens. In the UK, households received direct payments to offset rising energy bills. Even in the United States, stimulus checks and energy credits were deployed to shield citizens during crises.

These nations, though capitalist, understood that market forces must be tempered with compassion, lest mercantilist profiteers would suffocate commoners, as they currently do in Nigeria, actively supported by a government that has perfected the art of abandoning its own citizens to the unconscionable jaws of ‘free’ market, promising palliatives it has no plans to ever deliver!

Familiar appraisals of President Tinubu’s governance performance repeatedly fork out into two broad categorisations. While macroeconomic favourites often extol his administration for structural reforms such as subsidy removal, exchange rate harmonisation, and fiscal recalibration, microeconomic realists routinely condemn same for failing to privilege quotidian consequences of the administration’s policy moves upon the masses over abstract aggregates.

To the former, Tinubu’s interventions signify rare technocratic courage aimed at stabilising Nigeria’s economic architecture at the global levels, even as same would augment GDP figures, attract foreign capital, and eventually help rejig the nation’s fiscal trajectory. But critics underscore existential tribulations of ordinary Nigerians, including spiraling inflation, prohibitive food and fuel prices, generally receding purchasing power, and relentless erosion of household welfare.

It is true, macroeconomic stabilisation is indispensable for long-term prosperity, microeconomic distress is undeniable in the immediate term. In the dialectic of governance, microeconomic prescriptions remain the decisive arbiter, rendering condemnation more compelling than commendation! Is governance not basically about instituting succour?

Factually, successive Nigeria’s presidents, preferring macroeconomy, have turned petrol price hikes into a habit, slamming higher prices upon Nigerians at slightest need, often justifying the move as “reform”, while ignoring the crushing effects.

-Olusegun Obasanjo in 1978 raised pump prices from 8.4 kobo to 15.37 kobo.
-Umar Musa Yar’Adua in 2009 pegged petrol at about N65 per litre, which, by 2012, was raised to N141 by Goodluck Jonathan, but reversed to N97 upon nationwide protests spearheaded by today’s “progressive” controllers.

-Buhari, between 2016 and 2022, upstretched the prices for about three times, meeting it at N87 and leaving same at 170, and by 2022, Nigerians paid around N185-N200.

Truly, while consecutive managements since 1970s had welcomed subsidy reforms, historical records make Tinubu’s meanness especially compelling, as his 2023 inaugural pronouncement immediately shut the price past N600. Despite the general and routine rise in prices always triggered by petrol, no Nigerian government has succeeded in fixing electricity, emplacing tolerable public transport, or implementing credible or tangible social supports.

Between 1973 and 2024, petrol price adjustments have taken place 28 times, but national minimum wage has been adjusted only 8/9 times within same period, each adjustment, except the Udoji windfall of 1974, bringing such change as always made waged workers wonder the purpose!

Consequences of unsubsidised livelihood are today everywhere: transport fares have crippled workers; farmers must pay through their nose not just to produce, but move produce to markets; SMEs, worsted by rising overheads, are either shutting down or relocating elsewhere; and families are cutting back on essentials.

Consequently, malnutrition is rising, school dropouts are increasing, and desolation is common stapple in most homes. What meaning for monetary savings, weighed against prodigious, if unprecedented, social and economic devastation?

Nigeria must urgently unlearn its blind faith in free-wheeling ‘backwash’ forces of the market and relearn the principles of ‘distributive’ welfarism. Subsidies must be reinstated to bring petrol prices to tolerable levels, or, alternatively, unleash down-to-earth palliatives significant enough to reverse/ameliorate subsisting evaporation of survival on multiple fronts.

Is it entirely impossible for governments to temper capitalism with compassion? A Nigerian worker earning N100,000 monthly before Tinubu’s presidency could manage rent, food, transport, and modest savings. Nearly four years into his rule, even with his salary increments, hyperinflation has annihilated purchasing power.

Petrol now hovers around N1,700 per litre, food inflation above 40 per cent, that of construction materials well above 50 per cent, and transport costs have quadrupled! The grotesque spectacle of property owners auctioning cars, houses, and domestic items bears horrific, even disgusting, testimony to the recession strangling households to the heavens.

Whatever anyone may say, Atiku Abubakar, Nigeria’s former vice president, has scored rather hard political point by promising to restore petroleum subsidy if elected president in next year’s election.

The statistics already reeled out are not abstract figures; they represent shattered households, collapsed businesses, and a populace of human skeletons operating under whole litany of unsubsidised livelihood. Atiku’s promise, possibly pandering to populism, resonates still, acknowledging the necessity of cushionary policies in a depressed economy.

As 2027 looms, Tinubu will have to enter the witness box of public opinion to explain his economics of bloating the treasury at the cost of human survival: exalt asphalt, cement and steel to detriment stomachs of common people.

In Europe and America, governments never confuse infrastructure with humanity. Roads are built, yes, but alongside subsidies, rebates, and welfare programs that shield citizens from hunger and squalour.

France, Spain and the UK, left with no choice but impose unavoidable stringent economic measures, came up with solid cushions for citizens, aware that development must pace with compassion, that monuments must never be erected at the expense of men.

Nigeria under Tinubu would seem to choose monuments over men and projects over welfare, following well the mercilessness trajectory of his predecessors! Who will steer struggling Nigerians away from the path of despair?

Sulaiman Salawudeen wrote from Ibadan, Oyo State.

-Umar Musa Yar’Adua in 2009 pegged petrol at about N65 per litre, which, by 2012, was raised to N141 by Goodluck Jonathan, but reversed to N97 upon nationwide protests spearheaded by today’s “progressive” controllers.

AMINDA:
Amoda is a sadist. Nothing else gives him joy than seeing people suffer. These are all symptoms of a person battling some kind of trauma from childhood.

Racoon:
"This is one of the people who staged the Occupy Nigeria protest under President Goodluck Jonathan when fuel was about ₦140 per litre.

Today, fuel sells for nearly ₦1,500 per litre, yet he appears comfortable—and is even campaigning for the very government whose policies have made life unbearable for millions of Nigerians.

What happened to the outrage? Was the protest truly about the suffering of Nigerians, or was it merely political?"
#OccupyNigeria #FuelPriceCrisis #CostOfLivingCrisis( Credits: FB)

Racoon:
"A Nigerian worker earning N100,000 monthly before Tinubu’s presidency could manage rent, food, transport, and modest savings. Nearly four years into his rule, even with his salary increments, hyperinflation has annihilated purchasing power.

The grotesque spectacle of property owners auctioning cars, houses, and domestic items bears horrific, even disgusting, testimony to the recession strangling households to the heavens.

The statistics already reeled out are not abstract figures; they represent shattered households, collapsed businesses, and a populace of human skeletons operating under whole litany of unsubsidised livelihood. Atiku’s promise, possibly pandering to populism, resonates still, acknowledging the necessity of cushionary policies in a depressed economy

As 2027 looms, Tinubu will have to enter the witness box of public opinion to explain his economics of bloating the treasury at the cost of human survival.

Nigeria under Tinubu would seem to choose monuments over men and projects over welfare, following well the mercilessness trajectory of his predecessors! Who will steer struggling Nigerians away from the path of despair?


cc; Seunmsg

AMINDA:
Amoda is a sadist. Nothing else gives him joy than seeing people suffer. These are all symptoms of a person battling some kind of trauma from childhood.

Racoon:
When Gunnar Myrdal, in Rich Lands and Poor, warned that laissez-faire economics in poor nations would only magnify inequality rather than ameliorate it, he was merely articulating a timeless truth, such as the Nigerian reality continues to amplify in tragic multicolour!

HenryThegreat1:
Aliko Dangote, the president of Dangote Industries Limited (DIL) has strongly refuted allegations by the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), insisting its diesel is 80percent superior to those currently imported into Nigeria.

The richest man in Africa said this Saturday while showing members of the House of Reps the company’s facilities.

“Until late last year, diesel imports into Nigeria were up to 7,000 parts per million (ppm) of Sulphur which has been going on for many years. Our diesel is produced currently at significantly lower levels of Sulphur; as such, we find baseless the allegation that the reason for the reduction is linked to quality. What we are producing is 80 percent of what is being imported into the country,” Anthony Chiejine, the company’s spokesperson Dangote Industries Limited said.

Read also: Explainer: Separating fact from fiction in NMDPRA’s claims against Dangote refinery

“Another inaccurate assertion is that Medium Level Sulphur diesel is meant for off-road use. This is a completely false statement as this would have invariably meant that all the imports for the last 20 years have been damaging equipment.

“Thirdly, diesel imports for the high Sulphur grade have been at significantly higher prices until we started operation. If indeed high Sulphur diesel is sold at lower prices how come we never saw the lower prices until now?” the spokesperson said.

Read also: Dangote refinery not yet licensed to operate in Nigeria-NMDPRA

Related NewsInsecurity, oil theft: Nigerians demand results not endless rhetoricWrong diagnosis killing many patients in Nigerian hospitalsHigh electricity tariff crushing Nigerian public varsities

Dangote proved through a laboratory test before members of the House of Reps, led by Tajudeen Abbas how the sulphur content of its diesel is within acceptable range in Africa and better than some of diesel currently available in the country.

Dangote diesel currently contains 87.6 ppm

For instance, Dangote’s laboratory officials tested diesel products from two major retail outlets in Nigeria – TotalEnergies and Matrix – against the sample produced by Dangote Refinery.

The test was carried out using a ED-XRF Spectro Photometer, using the ASTM D4294 method.

The sample from TotalEnergies’s diesel showed 1,829ppm sulphur concentration. The sample from Matrix retail showed 2,2752.8682ppm sulphur concentration while the diesel sample from Dangote Refinery showed 87.6ppm sulphur concentration.

Targets 10ppm sulphur content August

“By the end of next week, we should be on 50ppm and by August, it should be down to 10ppm,” Dangote said.

BusinessDay’s findings showed the minimum global standard is 50ppm, while 200ppm is still acceptable in Africa till the end of the year.

On Thursday, July 18, Farouk Ahmed, chief executive officer of NMDPRA alleged Dangote refinery as well as some major refineries like Waltersmith refinery, produce between 650 to 1200 ppm.


https://businessday.ng/news/article/dangote-rejects-nmdpra-claims-says-sulphur-content-meets-african-standard/

anonimi:
NNPCL’s subsidy payment jump by 47.9% to N7.1trn in 2024

November 26, 2025

The Nigerian National Petroleum Company Limited (NNPCL) paid a total of N7.1 trillion as subsidy for premium motor spirit (PMS) in 2024, this sum represents a 47.9 percent increase from N4.8 trillion recorded in 2023.

This is despite the government’s announcement of subsidy removal in 2023.

The company explained that the amount, which it termed ‘energy security expense’ arises when there is differential between the exchange rate used to freeze the premium motor spirit ex-coastal price and the prevailing rate at the point of import settlement.

According to the report, government had instructed that NNPC Limited cannot sell its PMS above a certain regulated price. It added that the cost of petrol import is usually much higher that the regulated price.

https://businessday.ng/news/article/nnpcls-subsidy-payment-jump-by-47-9-to-n7-1trn-in-2024/?amp

boxypane:
If we remove the following from the current equation/dilemma of Nigeria, laissez faire could just be wrong.
1. Fantastically corrupt individuals from decisions making positions,
2. Working decentralized government,
3. Reasonable price control policies
4. Adopt a system of workable food production plan, such as that in Morocco.
5. Functioning social welfare, then these policies will close the gap by increasing purchasing power in a favourable environment.

tammie24:
There's a process in everything.
Magic doesn't happen

Splashme:
The first civilian governor of Lagos State, Alhaji Lateef Jakande, on Tuesday, said that the cancellation of the Lagos metroline project in 1985 was a major mistake and disservice to many Nigerians.

Jakande spoke in Lagos during the launch of a book which chronicled his life in politics and journalism.

The book, entitled, ‘Jakande: Leadership in Action’ is written by Dr. Bola Olaosebikan, who told the audience at the event that the All Progressives Congress presidential candidate, Maj. Gen. Muhammadu Buhari (retd.), was not responsible for the cancellation of the project.

Jakande said, “Reflecting on the metroline project, I think it is a major disservice to many Nigerians. Imagine how many people would have benefitted. It would have made life easier and changed the face of transport in Lagos. Whoever cancelled it or gave the advice towards its cancellation didn’t do right.”

The former governor asked Nigerians not to vote for unserious leaders in the coming polls, saying the elections presented Nigerians with a good opportunity that should not be squandered.

Expressing the hope that Nigeria would soon overcome its developmental challenges, Jakande said hope would be actualised faster if credible people emerged as leaders in the next dispensation.

He said, “This book comes at a very auspicious time in Nigeria’s history as we need leaders who can act. We need leaders who would not compromise the standards of good governance. God has blessed this nation the most in Africa, although we have not reached where we should be; with the right leaders, Nigeria would overcome its challenges.”


http://www.punchng.com/news/cancelling-metroline-a-major-mistake-jakande/

eluquenson:
REVISITING SOME OF THE LATEEF JAKANDE'S GOVERNMENT ACHIEVEMENTS FROM OCTOBER 1979 TO DECEMBER 1983 (FOUR YEARS AND 3 MONTHS) IN LAGOS STATE

* His government built the current Lagos State Secretariat which houses all the state ministries as well as the popular round house hitherto occupied by all subsequent governors of the state.

* His government built the Lagos State House of Assembly complex.

* His government built the Lagos State Television

* His government built the Lagos Radio

* His government built Lagos State University

* His government established General Hospital in zones all over the state with assurance of free health care.

* His government established Teacher Training College and the College of Education.

* His government built low cost houses in Ijaiye, Dolphin, Oke-Afa, Ije, Abesan, Iponri, Ipaja, Abule Nla, Epe, Amuwo-Odofin, Anikantamo, Surulere, Iba, Ikorodu, Badagry, Isheri/Olowu, Orisigun etc.

* His government established the Water Management Board and Waste Disposal Board on the 18th of August, 1980.

* His government constructed the Adiyan Water Works to increase water supply in the state to 18.16 million litres per day.

* His government modernized and expanded the Iju Water Works which was first commissioned in 1915. This increased daily capacity from 159 million to 204 million litres per day.

* His government purchased and commissioned the giant car crusher equipment. The equipment was designed specifically to crush derelict vehicles in Lagos State. It had the capacity to crush 45 vehicles per day.

* His government constructed, rehabilitated and resurfaced Epe/Ijebu-Ode Road, Oba Akran Avenue, Toyin Street, Town Planning Way, Alimosho-Idimu-Egbe Road, Idimu-Iba-LASU Road, the new secretariat road and several others.

* His government constructed Victoria Island/Epe Road and thereby creating an ‘oil rig’ for Lagos State.

* His government established Asphalt Plant for the Department of Public Works.

* His government established Electricity Board for Rural Electrification with provision of street lights.

* His government modernized, expanded and commissioned Onikan Stadium in 1982.

* His government established a singular school system and ensured genuine free education in Lagos State and the beneficiaries of this policy are in different positions of eminence in the country and around the world.

* His government raised the primary schools in Lagos State to 812 with 533,001 pupils (against 605 primary schools with 434,545 pupils he met in 1979) and secondary schools to 223 with 167,629 students (against 105 schools with 107,835 students in 1979).

* His government constructed 11, 729 classrooms with the maximum of 40 children per class between March and August 1980, by 1983, he had constructed over 22,000 classrooms.

* In July 1983, two commercial passenger boats christened "Baba Kekere and Itafaji" to run the Mile 2 - Marina (CMS) route via the lagoons were inaugurated by his government to mark the official launch of the Lagos State ferry services.

* His government took over the ownership and financing of Lagos State Printing Corporation in July 1980

* His government established the first State Traffic Management Authority (Road Marshals).

* His government established small scale Industries Credit Scheme which preceded the EKO bank.

*His government established LASACO Insurance.

*His government expanded existing market and built new ones.

*His government established Traditional Medicine Board.

WHO SAYS 4 YEARS IN OFFICE IS NOT ENOUGH FOR MEANINGFUL ACHIEVEMENTS?

IT'S A FACT THAT 90% OF GOVERNORS IN NIGERIA SINCE 1999 WITH REVENUES AT THEIR DISPOSAL CANNOT BOAST OF A QUARTER OF THESE ACHIEVEMENTS EVEN WITHIN THEIR EIGHT YEARS IN OFFICE.

anonimi:
If WE remove.....................................what WORKS are you doing as part of the we to remove what YOU want removed

adexpa:
All you said may be great and beautiful to read, but it’s wisdom to deeply look inward and use Nigeria’s peculiarities to guage and measure how government should cushion and approach the situation. using certain developed countries strategies in cushioning the effects of harmonization/subsidy removal is may be laziness because these countries had many necessary infrastructures in place like standard roads, proper functioning railway system, good health and education system, better Agricultural mechanization system etc, they did not need money for such any longer except for maintenance and upgrade. Nigeria needs money and more money for almost everything; all the previous governments failed to build major roads that can allow all part of the country connected as it should, the railway system is nothing, education, Health, Agriculture and more are completely zero. Nigeria can not easily return money back into another subsidy without building solid financial foundation that will allow everything that people complain about. I agree, every nations subsidy their system in one way or the other, but Nigeria needs financial stability that will allow us gain loan facilities and other platforms that will enable proper planning. Tinubu was designed basically for financial engineering and some few interventions which will allow subsequent government survive well . He did just that in Lagos( financial autonomy)

Racoon:
"This is one of the people who staged the Occupy Nigeria protest under President Goodluck Jonathan when fuel was about ₦140 per litre.

Today, fuel sells for nearly ₦1,500 per litre, yet he appears comfortable—and is even campaigning for the very government whose policies have made life unbearable for millions of Nigerians.

What happened to the outrage? Was the protest truly about the suffering of Nigerians, or was it merely political?"
#OccupyNigeria #FuelPriceCrisis #CostOfLivingCrisis( Credits: FB)