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WHAT WILL NIGERIA’S FUEL SUBSIDY PALLIATIVE DO FOR ITS MULTIDIMENSIONALLY POOR POPULATION?

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As Nigerians recover from the recent naira and fuel scarcities, they are bracing for yet another disruption: the removal of fuel subsidies, one that has been a contentious issue for many years.

While some argue that it is necessary to keep fuel prices low for the average citizen, others contend that it is a wasteful expenditure that only benefits the rich. Either way, the subsidy has become a significant drain on Nigeria’s economy, costing the government N102.5 billion monthly, to keep fuel prices artificially low.

Last October, the Minister of Finance, Budget, and National Planning, Zainab Ahmed, announced the federal government’s plan to remove fuel subsidies.

This plan will take effect in June this year. If this happens, the petrol price which currently sells for N185 to N270 will increase to about N302 per litre.

The removal of fuel subsidies is also likely to lead to a significant ripple effect on the economy as a whole.

For example, transportation costs are likely to rise after the removal of fuel subsidies, which could equally lead to inflation and a decrease in the purchasing power of the average Nigerian.

After the announcement last year, the government said it would give a monthly transportation grant of N5,000 to 40 million poorest Nigerians for a year to mitigate the immediate effect of the subsidy removal.

Now the government has begun plans to disburse $800 million to 10 million households- roughly 50 million Nigerians- across the country as a palliative measure.

While the palliative measure is to mitigate the impact of the subsidy removal, it is necessary to understand the realities of Nigeria’s fuel subsidy palliative – it may not be enough to significantly impact the lives of the country’s multidimensionally poor population.

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Auspiciously, Nigeria’s reality is that there are 133 million multi-dimensionally poor Nigerians. This means 133 million Nigerians lack more than one essential survival need (good health, good living standards, primary education, and gainful employment).

But that is not the only problem. 40.1% of Nigerians are monetarily poor. This means they make less than $2.15 per day. When divided amongst 10 million households, the $800 million palliative amounts to just $80 per household.

This amount can only buy them 10 litres of fuel at the current price, which many Nigerians rely on for transportation and generating electricity.

When the fuel subsidy is removed, the projected increase in fuel prices will make it even more difficult for the average Nigerian to afford fuel. While the palliative may provide some temporary relief, it is not enough to address the long-term effects of subsidy removal.

According to the Nigerian government, the palliative measure will be for the most vulnerable in society, as identified through the national social register, the country’s most comprehensive database of individuals, with detailed information on over 50 million poor and vulnerable citizens.

However, Nigeria has a history of corruption and bureaucratic inefficiencies, and ensuring that the cash transfers reach those who need them the most will be a challenge.

It is important to note that the money used for this palliative measure is one of Nigeria’s loans approved by the World Bank in 2021 to increase Nigeria’s safety net coverage.

The government would need to ensure that the cash transfers reach the most vulnerable in society and that measures are in place to prevent fraud and mismanagement of the funds.

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While the palliative measure is a step in the right direction, it is vital to acknowledge the realities of Nigeria’s fuel subsidy palliative. The government would need to find a sustainable solution that balances the need for fiscal responsibility and ensure that the multidimensionally poor population is adequately supported during this transition.

For example, the government could consider gradually phasing out fuel subsidies over a long period and investing in alternative energy sources such as solar and wind power.

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Ibas charges military officers to develop practical solutions to insecurity

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Rivers Sole Administrator, Ibok-Ete Ibas, has charged Armed Forces Command and Staff College (AFCSC) participants to provide practical solutions to insecurity issues in their study tour reports.

Ibas gave the advice when the Senior Course 47 of the Armed Forces Command and Staff College Jaji, paid him a courtesy visit in Port Harcourt on Monday.

Ibas, represented by the Secretary to the State Government, Prof. Ibibia Worika, stressed that internal security without proper feedback mechanisms from the security agencies would be an illusion for the state and the country.

He emphasised the significance of gathering credible intelligence to address insecurity, noting that security challenges negatively impact economic productivity, reduce government revenue, and deter investments.

The Administrator urged the participants to ensure that their interactions with security agencies and other stakeholders translate into practical, actionable strategies for enhancing security operations.

Ibas expressed confidence that the study would contribute to both academic scholarship and the broader security framework necessary for a safer Rivers State.

The Team Leader and Director of Logistics, AFCSC Jaji, Comdr S. O. Abdularaheen, explained that the study tour was part of the 2025 research on the Nigerian environment as it relates to national security concerns.

Abdularaheen said that his team was one of nine groups currently on a study tour across selected states in Nigeria.

He said that the team was guided by the theme: “Harnessing Grassroots Intelligence for Enhanced Internal Security.”

Abdularaheen said that their findings would be compiled into a research paper for the college with recommendations expected to be adopted by relevant government agencies and organizations for implementation. (NAN)

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NELFUND calls on south-south, south-east to boost loan participation

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The Nigerian Education Loan Fund (NELFUND) has called on the South-South and South-East regions to increase their participation in the student loan scheme.

The Fund stated this during its stakeholders’ engagement session and technical workshop on system automation and the loan application process in Abuja on Monday.

The Fund cited a noticeable disparity in applications compared to other parts of the country.

The three-day event, which began on Monday with universities, will continue with polytechnics, monotechnics, and institutes tomorrow. The final day, on the 7th, will feature colleges of education, agriculture, health, and nursing.

Speaking , the The managing director and Chief Executive Officer of NELFUND, Akintundr Sawyerr, said the gathering is a critical milestone in the collective journey it has embarked upon to deliver a fully digitized, transparent, and student-centric financial aid system for Nigerian higher education.”

Responding to reports that NELFUND was paying students who have already graduated, he clarified that the Fund is handling government and taxpayers’ money, and no disbursement would be rushed.

“We have to adhere to our processes. If a person has already paid their fees in their final year, and we’ve paid their tuition, it is the obligation of that individual to go to school. I know my fees are now being paid by an officer.

“But to complain that you’ve already graduated and you’ve left, the fact of the matter is people applied in their final year. You have to go through a process that allows us to make sure that they are the ones who are actually applying and who actually need it. Again, let me just point out this thing about delays.”

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According to him, the meeting is intended to influence how the platform evolves and how we address practical challenges faced by institutions and students alike.

Ifeoluwa Ehindero, Chairman of the House Committee on Students Loan, Scholarships, and Higher Education Financing, said for the system to be truly effective, there is need to modernise and streamline how we manage, track, and deliver these funds to deserving students.

According to him, by automating and optimising the NELFUND system, it aims to create a more transparent, efficient, and responsive process for loan applications, approvals, and disbursements.

“This is essential for the success of the initiative and will go a long way in ensuring that our students benefit in a timely and accountable manner.

“As members of the House of Representatives Committee on Student Loans, we have been working tirelessly to ensure that the legislative framework supports and facilitates these reforms. However, legislative efforts alone are not enough.

“We need your expertise, your feedback, and your active participation to make sure that we have a system that works for everyone from the students applying for loans to the institutions managing the funds.

“This workshop is not just a platform for training but also an opportunity for collaboration. As you interact with the NELFUND system, your insights into how we can improve its functionality will be invaluable in helping us refine and enhance it to meet the needs of our institutions and students.”

Executive Director of Operations at NELFUND, Mr. Iyal Mustapha, earlier disclosed in his presentation that over 576,058 students have registered, with a total application value of ₦170,437,179,836.

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He also urged institutions in the South East and South South to improve sensitisation efforts for timely loan applications.

The representative of the National Universities Commission (NUC), Lawal Mohammed Faruk, said NELFUND is one of the best policies of the Federal Government.

“Our dream is to see NELFUND one day onboard all the students in the country, whether public or private,” he said.

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Atiku Critiques EFCC’s Detention of VDM

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Former Vice President and prominent opposition leader Atiku Abubakar has vocally condemned the arrest and ongoing detention of social media influencer Martins Vincent Otse, widely known as VeryDarkMan (VDM), by the Economic and Financial Crimes Commission (EFCC).

In a statement released on Monday, Atiku characterized this action as “yet another blatant abuse of power” by the Bola Tinubu administration, alleging that it employs political repression as a governance strategy.

“Even more concerning is the fact that Mr. Otse remains in custody without any formal charges—this constitutes a flagrant violation of his constitutional rights and serves as a chilling reminder of the increasing authoritarianism under this government,” Atiku asserted.

He contended that the detention is part of a “disturbing pattern” exhibited by the Tinubu administration, which seeks to suppress fundamental freedoms, particularly targeting dissenters and opposition figures.

“We must not permit state-sponsored repression to become the hallmark of our democracy,” Atiku cautioned.

The former presidential candidate further criticized security agencies for their selective enforcement, highlighting the swift arrests of dissenters—often executed without due process—while political allies facing corruption allegations remain unscathed.

“The systematic repression of opposition voices by the Tinubu administration is nothing short of disgraceful. It represents a blatant affront to democratic principles and must be vehemently condemned and opposed,” he concluded.

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