₦airaland Forum

For decades, removing the petroleum subsidy in Nigeria was a political hot potato and then a political football. The first metaphor refers to the squeamishness of some past governments about removing the subsidy. The second describes self-interested and hypocritical politicians whose presidential ambitions led them to be Janus-faced on subsidy removal. In 2012, Bola Tinubu viscerally opposed removing the fuel subsidy, only to remove it on his first day as president in 2023. Atiku Abubakar’s support for fuel subsidy removal was as solid as the Rock of Gibraltar. But recently, he did a remarkable U-turn! In societies where impact assessments are central to policymaking, whether to remove the subsidy would depend on adequate consideration of alternative options, the adverse consequences of withdrawal and sufficient mitigation. But President Tinubu’s abrupt removal of the subsidy on his inauguration bore no hallmarks of such detailed preparation. Indeed, he later said: “When I got to the podium, I was possessed with courage, and I said, ‘Subsidy is gone.’” Thus, he acted on impulse. Unfortunately, the narrative about the fuel subsidy removal is defined by deception, half-truths and outright lies.

For a riposte, let’s return to basics. The fuel subsidy was introduced in the 1970s as an imperative. The reason was simple. Because Nigeria could not refine its crude, despite having state-owned refineries, it had to import refined petroleum. But the costs of imported refined petroleum are determined by world crude prices and the naira’s exchange rate. So, with high world oil prices and a devalued naira, the landing costs of imported refined petroleum were very high, as was, by extension, the price citizens paid for petrol. Thus, to relieve Nigerians of an unbearable burden, the government sold imported refined products to the public at below-market prices, that is, at subsidised prices. That’s the genesis of the fuel subsidy. But the chain of causation is important: Nigeria’s failure to refine its crude led to its reliance on imported refined petroleum; its reliance on imported refined products, when combined with high world oil prices and the naira’s devaluation, led to high costs of imported refined petroleum and, by implication, a high pump price for petrol.


In those circumstances, the government must either subsidise petrol for its citizens or expose them to market-driven high energy costs.



Advertisement
However, worldwide, governments subsidise petrol for their citizens. According to the IMF and the International Energy Agency (IEA), more than 150 countries subsidise fuel to lower energy costs. Of the major oil producers, China, Iran, Saudi Arabia, Russia and India “account for the largest absolute dollar amounts spent on keeping fuel artificially cheap.” Following the Russian invasion of Ukraine and the US-Iran war, which hiked world oil prices and created an energy crisis, many countries, such as Indonesia, increased their fuel subsidies. In Britain, the new prime minister, Andy Burnham, announced a cap of £2 on bus fares, a third off fares, ensuring cheaper travel for millions of Brits. These countries subsidise petrol for their citizens to tackle the cost-of-living crisis and control inflation.

But what about Nigeria? Well, barely a decade after the fuel subsidy was introduced, many governments tried, albeit unsuccessfully, to scrap it on the basis that it was too expensive. As part of its Structural Adjustment Programme (SAP), General Ibrahim Babangida’s military regime tinkered with the subsidy but did not remove it. The civilian administration of President Olusegun Obasanjo abolished the fuel subsidy in 2004 but restored it two years later as world oil prices went up and unions protested. So, it could be argued that previous attempts to remove the fuel subsidy faltered because of harsh economic realities, i.e. impacts on citizens, and hostile reactions. But the moral case for withdrawing the fuel subsidy was also weak. In a major oil-producing nation where there’s no social safety net, where the state can’t provide basic amenities and where the country’s oil wealth, a national asset, has long benefited only the elites, the fuel subsidy was, for ordinary Nigerians, “the only direct benefit they enjoyed from their country’s oil wealth”, as Dr Ngozi Okonjo-Iweala once put it. So, from socio-economic and moral perspectives, removing the subsidy wasn’t straightforward.

Yet, arguments about the fuel subsidy’s unsustainability never went away. For instance, the subsidy reportedly accounted for about 15 per cent of government expenditure in 2022, and some estimates put the total subsidy payments during President Muhammadu Buhari’s eight-year administration at about $25bn (N35trn). But that’s part of the deception, half-truths and outright lies about the fuel subsidy because over half of that amount was linked to corruption. In 2012, a House of Representatives committee found that the subsidy regime “was fraught with endemic corruption and entrenched inefficiency”, with “subsidy payments claimed for products not delivered.” In his book The Shadow of Loot and Losses: Uncovering Nigeria’s Petroleum Subsidy Fraud, Abdulrasheed Bawa, a former EFCC chairman, revealed that Nigeria lost $450mn to fuel subsidy fraud between 2006 and 2012. And in 2023, Isa Yuguda, a former Bauchi State governor, told a TV station that a friend in the oil industry told him that he had told President Buhari: “Mr President, please remove the subsidy. We are tired of making money!” But, in truth, it’s not the entire subsidy itself that needed to be scrapped; it’s the corruption behind it. Yet, successive governments condoned the massive corruption.

Which brings us to the opportunistic politicisation of the subsidy issue. As some readers will recall, in 2012, President Goodluck Jonathan decided to remove the fuel subsidy. However, Tinubu, then in opposition, sponsored the “Occupy Nigeria” protests to torpedo the decision. Indeed, Tinubu wrote a newspaper article titled “Removal of oil subsidy: President Jonathan breaks social contract with the people”. He argued that removing the fuel subsidy “will increase the price of petrol, transport and most consumer items.” Yet, on his first day as president, Tinubu removed the subsidy. Leaving aside the hypocrisy and opportunism, the question is: Did Tinubu not realise that removing the fuel subsidy “will increase the price of petrol, transport and most consumer items”, as he said in 2012? Of course, all the adverse consequences he predicted in 2012 inevitably accompanied his withdrawal of the fuel subsidy in 2023 and have led to deepening and widespread poverty and misery across Nigeria.

The misguided assumption that the Dangote Refinery would be a game changer, “nullifying the need to import refined petroleum” and thus the need for a fuel subsidy, has proved to be exactly so: misguided! Before Tinubu removed the fuel subsidy, the price of petrol was N197/litre; today, it’s averaging N1,600/litre, despite Dangote Refinery’s “full operation”. So, what’s the policy justification for the subsidy removal? Well, the presidency cites a N15.8trn subsidy windfall, saying much of it went to state governments to pay teachers and pensioners. But what’s the number of public-sector employees and their dependants relative to the wider population? And can the employed make ends meet with higher petrol, transport and consumer prices? Whatever its merits, the subsidy removal makes life harder for Nigerians, not better!

Unsurprisingly, Atiku, a major candidate in next year’s presidential race, indulged in the politics of grievance by abandoning his long-held support for subsidy removal and promising to restore the fuel subsidy if elected. But reversing the fuel subsidy removal is not the solution. Rather, the answer is to heed the IMF’s call for “adequate compensatory measures for the poor and efficient and transparent use of the saved money.” Sadly, that’s not how the Tinubu administration has handled the subsidy withdrawal to date. Last week, President Tinubu told APC governors to reduce transport fares in their states by using compressed natural gas (CNG) and electric vehicles. But that was a gimmick. From a climate change perspective, one can justify removing subsidies on fossil-fuel use if part of the savings is invested in energy transition, including electric vehicles. But the trillions saved from the subsidy removal are not used to tackle poverty, energy costs and climate change; rather, they are being wasted, mismanaged and embezzled. That’s a major deception, a big lie, at the heart of the fuel subsidy removal: it’s an extortionary tool of an extractive state!

Source: https://www.vanguardngr.com/2026/09/lies-damned-lies-about-fuel-subsidy-removal-in-nigeria-by-olu-fasan/

I’m conducting an academic research study on “Salary Review Practices and Employee Experience in Nigerian Start-ups”, and I need responses from employees working in Nigerian start-ups (or if you know someone in the sector, you can share it with them).

The survey is short, anonymous, and strictly for academic purposes.

The research is purely for academic purposes and aims to generate insights that may also be valuable to start-ups in understanding employee motivation, retention, and compensation practices within the Nigerian context.

Kindly help by completing it and sharing it with others who may qualify.
Thank you sincerely.
Here is the link >>>
https:///WLbhKqYbCDhFxrK3A

I’m conducting an academic research study on “Salary Review Practices and Employee Experience in Nigerian Start-ups”, and I need responses from employees working in Nigerian start-ups (or if you know someone in the sector, you can share it with them).

The survey is short, anonymous, and strictly for academic purposes.

The research is purely for academic purposes and aims to generate insights that may also be valuable to start-ups in understanding employee motivation, retention, and compensation practices within the Nigerian context.

Kindly help by completing it and sharing it with others who may qualify.
Thank you sincerely.
Here is the link >>>
https:///WLbhKqYbCDhFxrK3A

I’m conducting an academic research study on “Salary Review Practices and Employee Experience in Nigerian Start-ups”, and I need responses from employees working in Nigerian start-ups (or if you know someone in the sector, you can share it with them).

The survey is short, anonymous, and strictly for academic purposes.

The research is purely for academic purposes and aims to generate insights that may also be valuable to start-ups in understanding employee motivation, retention, and compensation practices within the Nigerian context.

Kindly help by completing it and sharing it with others who may qualify.
Thank you sincerely.
Here is the link >>>
https:///WLbhKqYbCDhFxrK3A

I’m conducting an academic research study on “Salary Review Practices and Employee Experience in Nigerian Start-ups”, and I need responses from employees working in Nigerian start-ups (or if you know someone in the sector, you can share it with them).

The survey is short, anonymous, and strictly for academic purposes.

The research is purely for academic purposes and aims to generate insights that may also be valuable to start-ups in understanding employee motivation, retention, and compensation practices within the Nigerian context.

Kindly help by completing it and sharing it with others who may qualify.
Thank you sincerely.
Here is the link >>>
https:///WLbhKqYbCDhFxrK3A

I’m conducting an academic research study on “Salary Review Practices and Employee Experience in Nigerian Start-ups”, and I need responses from employees working in Nigerian start-ups (or if you know someone in the sector, you can share it with them).

The survey is short, anonymous, and strictly for academic purposes.

The research is purely for academic purposes and aims to generate insights that may also be valuable to start-ups in understanding employee motivation, retention, and compensation practices within the Nigerian context.

Kindly help by completing it and sharing it with others who may qualify.
Thank you sincerely.
Here is the link >>>
https:///WLbhKqYbCDhFxrK3A

I’m conducting an academic research study on “Salary Review Practices and Employee Experience in Nigerian Start-ups”, and I need responses from employees working in Nigerian start-ups (or if you know someone in the sector, you can share it with them).

The survey is short, anonymous, and strictly for academic purposes.

The research is purely for academic purposes and aims to generate insights that may also be valuable to start-ups in understanding employee motivation, retention, and compensation practices within the Nigerian context.

Kindly help by completing it and sharing it with others who may qualify.
Thank you sincerely.
Here is the link >>>
https:///WLbhKqYbCDhFxrK3A

Most positive decisions and policies that we see today start with quality research that identifies gaps. Your input is still being awaited. Kindly fill out the form. Thank you in anticipation

tosin481:
Hello entrepreneurs and business enthusiasts,

I am currently an MBA student researching a critical factor for business survival: The Impact of Salary Reviews on Employee Motivation.

In the current Nigerian economic climate, founders are juggling rising costs with the need to keep their best hands. But does a salary increase actually lead to better commitment, or is it just a temporary fix? I am gathering data to help startups build more resilient compensation strategies.

If you are a founder or employee in a startup, please spare 3 minutes for this anonymous survey. No names or sensitive company data are required.

Survey Link: https:///WLbhKqYbCDhFxrK3A

Your input will help provide data-driven insights for the Nigerian business community.

Thank you for your participation.

Most positive decisions and policies that we see today start with quality research that identifies gaps. Your input is still being awaited. Kindly fill out the form. Thank you in anticipation

Impact of salary reviews on the motivation and commitment of employees in Nigerian startups. we are still accepting inputs

Startups frequently struggle with salary issues due to limited cash flow, high-risk environments, and intense competition for talent, often leading to delayed pay or lower base salaries compensated with equity. This research is out to create awareness in the sector towards possible solutions. A well motivated employee will deliver more than an unmotivated one.
the form is still open to your inputs. Thank you in advance as you help complete it and also share with others of interest.
Survey Link: https:///WLbhKqYbCDhFxrK3A

Your input is still needed.

The form is still accepting responses. Thank you in anticipation of your input

The form is still accepting responses. Your input will be appreciated

The form is still accepting responses. add your input. thank you

Hi Techies,

I’m currently researching the "people" side of the Nigerian tech ecosystem for my MBA thesis.

We often talk about funding and products, but the real engine is the talent. My study, "Impact of Salary Review on Employees’ Motivation and Commitment", seeks to find out if the recent pay adjustments across Nigerian startups are actually hitting the mark.

If you’re working in tech (Devs, PMs, Designers, Ops, etc.), please help me by filling out this short, anonymous form. It takes less than 3 minutes.

Survey Link: https:///WLbhKqYbCDhFxrK3A

I need to reach a sufficient number of respondents to make this data statistically significant for the industry. Thank you for supporting indigenous research!

Hello entrepreneurs and business enthusiasts,

I am currently an MBA student researching a critical factor for business survival: The Impact of Salary Reviews on Employee Motivation.

In the current Nigerian economic climate, founders are juggling rising costs with the need to keep their best hands. But does a salary increase actually lead to better commitment, or is it just a temporary fix? I am gathering data to help startups build more resilient compensation strategies.

If you are a founder or employee in a startup, please spare 3 minutes for this anonymous survey. No names or sensitive company data are required.

Survey Link: https:///WLbhKqYbCDhFxrK3A

Your input will help provide data-driven insights for the Nigerian business community.

Thank you for your participation.

Hello fellow Nairalanders,

I am conducting an MBA research project regarding the impact of salary reviews on the motivation and commitment of employees in Nigerian startups.

With the current "Sapa" and economic situation in the country, many startups are reviewing pay, but does it actually help with retention? I want to hear from the people on the ground.

Note: This is strictly for academic purposes and is 100% anonymous. No names or company names are required. It takes less than 3 minutes.

Survey Link: https:///WLbhKqYbCDhFxrK3A

Please help a fellow student reach target respondent. I’ll be happy to share the summary of the findings (on request) once the project is done!

Thank you!

Zane2point4:
Yes of cos, reinforce your proof of funds,and your relationship with your sponsor, every document in your house is necessary,na one fit change your story,put all even pictures.

Thank you so much. I will do that. I believe am coming back with my testimony very soon.

ShowYoung:
With these answers, it is obvious why your application would be refused because of the followings or more:

1. Your tuition fee for the 3 years is $27,000. How can your sponsor having $35k agree to fund you with $27k out of the $35k? Does he/she have no other responsibilities? If you deduct living expenses from the remaining money of your sponsor, your sponsor will have no more money in the account, even, it will run to negative? Is he/she your parent? Even if he/she is your parent, how will he/she survive?

2. Your sponsor is having $35k, but earns #25m ($72,500) annually, how come the account balance is this low? What is the total lodgements and total withdrawals?

IRCC uses account balance, credit total, debit total and lump sums to nullify or justify your claim of annual earnings and ability to finance your education.

Kindly note that I am not asking you those questions above, they are there to open your eyes to see how your claims may have been flawed.

Thank you so much. God bless you. No going back, I am going to work on it. Thanks again

Accessed:
Sorry! I think your GCMS will provide clarity on the issue(s) the VO has with your application. However, a 3 year programme will require a lot in POF and even if it is fully funded, you will need to demonstrate capacity to fund should you be unable to retain the scholarship along the line.
Please get the GCMS first!

My life is in God's hands o. Thank you so much. I will do that

ShowYoung:
The questions are:
1. What is the yearly tuition fee?
2. What amount of money did your sponsor show?
3. What is the ratio of your sponsor's wealth to your sponsorship.
4. What other responsibilities does your sponsor have? Examples are other children, business etc.
5. What documents did you show relating to your sponsor.

There are many more questions, but if you answer the questions above, you will be able to see your flaws (probably).

I still recommend GCMS notes.

Wow. It seems I didn't even consider no 3,4,5 questions. I have work to do Sincerely.

1. Yearly tuition is 9kCAD
2. My sponsor is showing 35k CAD and annual income of N25m

So grateful for your input

zubizareta:
Wait..you said 5M or 50M??

5m

technix:
Sorry to see this.

I would advise that you apply for GCMS note before you reapply.

However, the VO may not be convinced that your in-law will sponsor your education for 3 years.

Mmn that is another point. Thank you so much

Zane2point4:
It’s obvious its abt funding, i think he’s sponsors acct is low, in my own case i didnt wait for the gcms note ,i touched touched the general area and reinforced the former application!

Let him beef up acct and make sure he include birth cert of him and sponser frm npc also let him include pics and assets like land ,cars etc
@tosin481

Thank you so much and God bless you. I am taking note already and will do the needful. I believe It will end in praise

ShowYoung:
While GCMS notes is the true source of getting the main reason you were refused visa based on financial resources, I can deduce from what you wrote here, coupled with some questions which if asked will not be in your favour, that your application has some flaws.

Thank you for your response,
Please can you ask these questions and point out some of these flaws. God bless you richly

Ayobamiaz:
I will advise you request for your GCMS note first before reapplying

Ok, thanks for your response

hello great people in the house,
I have been following this thread, but this is the first time am asking question.

My study visa just got refused and am really disappointed. the reason given was;

• I am not satisfied that you will leave Canada at the end of your stay as required by paragraph R216(1)(b) of the IRPR (https://laws-lois.justice.gc.ca/eng/regulations/sor-2002-227/section-216.html). I am refusing your application because you have not established that you will leave Canada, based on the following factors:
• Your assets and financial situation are insufficient to support the stated purpose of travel for yourself (and any accompanying family member(s), if applicable).

Submitted application on 23rd May
Biometrics on 31st May
Refused on 8th June

I am going for a 3 years program. My program resumes in September, 2023
i submitted evidence of my contribution as POF which is N5m
I also used my in-law as a sponsor and his employment documents and pay slip was included.

Any advice on what more I could do to convince visa officer and have my visa approved.

Am in the process of re-submitting another application.
I really trust God to get approval this time around. Thank you and God bless you

Orire01:
Section C

*Which of these is applicable to you

To some none is applicable and we are forced to choose 1 e.t.c.

That's true,
I will make necessary adjustments.
Thanks for your time and effort. Am grateful

Orire01:
Done! But you should check some questions and review them also make some questions open ended

OK thanks bro.
Please can you point my attention to the suggested part.
Thank. I really appreciate your contribution
God bless you

ednut1:
Used to consume this shit die to long work hours. One day i had heart palpitations and nearly passed out. Too much caffeine in my body. I don’t know why things like this are being sold self

That's it o.
That's why am doing this and I hope to publish and create awareness on it.
Hope you filled the survey for me.
Thanks a bunch