The high cost of living and hunger have sparked protests across Nigeria, with both young and old participating in marches.

Nigerians nationwide have demonstrated in favor of or against the country’s high cost of living, despite hurried attempts and entreaties from the government, security services, and even traditional leaders to put things right.

Because of the EndSARS protests that shook the nation in October 2020 and resulted in the destruction of both government and private property valued at billions of Naira, as well as a “bloody massacre,” the government is concerned that the demonstrations may turn violent.

LN247 reports that on Thursday morning youths gathered in various cities across the country including the capital Abuja, Lagos and Port Harcourt, carrying placards and chanting songs.

This frustration from Nigerians didn’t start today as we look at what has been happening and why it has escalated to this point.

‘Subsidy Removed’

Many say the crux of this issue started when Nigerian President Bola Ahmed Tinubu made the declaration at his inauguration on 29 May, 2023: Saying “Subsidy is gone”.

The government had for a long time subsidized petroleum products that’s been imported because of lack of functioning of the four refineries, despite being a major producer of crude oil in Africa, and one of the biggest importers of petroleum products.

The fuel subsidy has long been a contentious issue in Nigeria, with previous administrations attempting to remove it due to its increasing cost and burden on the government’s finances. The subsidy allows Nigerians to purchase Premium Motor Spirit (PMS), also known as petrol, kerosene, and diesel, at a cheaper price than the international market rate.

In January 2012, former President Goodluck Jonathan announced the removal of the subsidy, leading to widespread protests led by Bola Tinubu, who is now the President. The protests, tagged “Occupy Nigeria,” forced Jonathan to reinstate the subsidy.

However, in a surprising move, President Tinubu recently declared that the subsidy had been removed, sending shock waves through the economy and leaving citizens stunned. Experts warn that this move could lead to economic instability and hardship for Nigerians.

The fuel subsidy removal has been a long-standing debate, with proponents arguing that it is a necessary measure to revamp the economy, while opponents claim it will only exacerbate the suffering of the masses. As the situation unfolds, Nigerians wait with bated breath to see the implications of this controversial move.

‘Naira Plunges After Floating’

Less than a month after THE President removed fuel subsidies, the Central Bank of Nigeria (CBN) announced the floating of the Naira, allowing it to trade more freely against the US dollar.

The naira’s value plummeted from 460 to 750 per dollar within days and currently stands at around 1,600 per dollar, a slight improvement from February’s record low of almost 2,000 per dollar.

The currency fluctuation has led to a surge in prices of goods and services, with costs increasing by three to four times. Economists have criticized the decision.

However, financial expert Ayodele Akinwunmi said, “In the medium and long term, this move has significant benefits for the country in terms of investment.” I want Nigerians to give the government a bit more time to allow these policies take effect.”

“Food Prices Soar amidst Insecurity and the Removal of Fuel Subsidies”

The ending of fuel subsidies has also resulted in a two- to three-fold increase in transportation costs nationwide. Food products moving from the northern regions, where the majority of the nation’s food is produced, to the southern regions have been negatively impacted by this.

Growing insecurity has made it harder for farmers to access their northern farms, which has exacerbated the problem and caused hyperinflation. The National Bureau of Statistics reports that the cost of staple foods like garri, tomatoes, potatoes, onions, and beans has gone up by more than 200%.

The food price hike has angered many Nigerians, with critics describing the government’s efforts to distribute trucks of rice and grains as palliatives to state governments as insufficient. The situation continues to worsen, leaving many to wonder what the government’s next move will be to address the crisis.

‘Government’s Efforts to Ease Nigerians’ Hardship’

The Nigerian government has introduced policies aimed at alleviating the suffering of its citizens. One such initiative is the adoption of Compressed Natural Gas (CNG)-powered transportation, which has failed to take off.

Recently, President Tinubu signed a new minimum wage bill into law, increasing the salary of the lowest-paid government worker from 30,000 naira to 70,000 naira. However, this falls short of the labor unions’ demand for more than three times that amount.

To address youth empowerment, the government has expanded the ‘Youth Investment Fund’ from 70 billion naira to 110 billion naira. The fund aims to support young entrepreneurs with small businesses or ideas as well as passage of the loan act for students in tertiary institutions.

Despite these efforts, protesters across Nigeria demand more. They want the petrol pump price to return to less than 200 naira, and for the government to tackle insecurity, enabling farmers to return to work and reduce food prices.