Subsidy: Their Gains, Our Agony

Following a series of meetings between the federal government and labour organisations over the astronomical increase in the pump price of petrol, occasioned by subsidy removal, which subsequently triggered angry reactions and unprecedented protests across the country, government announced a reduction from N145 and above to N97. And the organised labour thereafter suspended the week-long strike and street protests that negatively affected the country’s economy in no small measure. Two weeks after the strike and protests, Nigerians are still counting their losses and bemoaning the very hard times they have been forced to go through. SOLOMON AYADO, CHALYA DUL, PATRICK OCHOGA, BINTA ABDULLAZEEZ and JAMIL GULMA write for LEADERSHIP WEEKEND.

Across the 36 states of the federation, the sharp increase in the pump price of petrol has adversely affected goods and services. There is no exception to this sudden order.

In Makurdi, the Benue State capital, prices of food and other items have skyrocketed.

This was confirmed during a visit to some of the markets in Wurukum, Modern Market, Wadata and North Bank areas.

LEADERSHIP WEEKEND’s investigation revealed that quite a few buyers were at the markets visited, hence shops that opened for business were patronised by a handful of persons. At roadside kiosks the story is not different as buyers wore very tall looks in response to the hike in prices of goods. The traders, both men and women also turned gospel preachers as they laboured to make customers understand their own plight—–they are not to blame—-the federal government should be held responsible.?

At the Wurukum Market, Ngozi Peter, a dealer in foodstuff said that the 50kg bag of rice, which was sold at the rate of N7, 000 had increased to N8, 500, and explained that the sharp increase was occasioned by the nationwide strike protests against the removal of fuel subsidy.

“My brother, we now sell the 50kg bag of rice at the sum of N8,500 as against the former price, which was N7,000. It is because of the strike which almost made some of us hopeless. We found it difficult to feed our families. What the government is doing is not good. Instead of making life worth living it is inflicting hardship on us, and if this is allowed to continue, the poor cannot come to the market,” he said.

Ngozi revealed further that the price of a bag of beans which was sold at N8000, has increased to N10, 000, and lamented that it is not healthy for a country that is agitating for economic stability before year 2015.

Also, according to Mallam Sani, who sells onions in one of the markets, a small bag of onions now sells at N8000 as against the old price of N5000, while the big bag, which was sold at N8,500 now sells at N10,000.

“The product is very scarce in the market. Even this one you see here is not the quantity I used to buy. This strike is not good. Government should do something fast to save traders from this difficulty. If this is rightly done, we can once more smile and also sell well,” Sani said.

Another trader who simply gave his name as Uche, a dealer in clothes and shoes, added his voice, “You can’t imagine that the prices of clothes and shoes would remain the same when the price of fuel has been increased. Personally, I cannot sell my stuff for any cheap price. If government wants steady price, let it bring back the price of fuel to N65 per litre.”

Again, long queues in petrol filling stations have returned in the state, even as the scarcity of the product still remains worrisome. Curiously, marketers who opened for business were selling between N200 and N300 but barred commercial vehicles from the stations.

Similarly, as a result of the astronomical rise in petroleum products, including kerosene, Abuja residents are beginning to look towards the direction of the primitive way of generating heat to cook their meals. This, according to investigation, is to reduce the effect of the sudden increase in the prices of goods and services, which is already taking a bad toll on residents.

The use of firewood and charcoal, which is predominantly used at the rural areas, is gradually creeping into the house of many Abuja residents, including those who belong to the ‘’middle class.’’

A couple of people who spoke with LEADERSHIP WEEKEND said their decision to revert to the use of firewood and charcoal was informed by the reality that stares sternly at them as they must adjust to the prevailing circumstance to accommodate their basic needs.

Mrs Adeboye, who spoke to LEADERSHIP WEEKEND as she bought a charcoal stove at Kubwa said her reason for buying the stove was to supplement her cooking gas. “In cases where I need to boil water and cook in large quantity, I will use the charcoal stove. Besides, it is cheaper.

Odion, who runs a restaurant, popularly called buka at Jabi motor park, said that because of the nature of her business, firewood had remained her choice medium for cooking before the recent increase in fuel pump price. She, however, admitted that the new price of PMS has affected the price of firewood and in turn would affect her price list.

“It has affected the price of my meals because a sized firewood, which is previously sold at N100, is now sold at N150. Prices of foodstuff have also gone up, and this has definitely affected the price of the meals I cook.

“A plate of meal I used to sell at N200 now costs N250. I prefer to use firewood for cooking because it is cheaper, and more importantly, it gives my meal a unique taste that makes my customers always patronise me,’’ she said.

Expectedly, the upsurge in the use of charcoal will have adverse environmental impact on the nation, even at this time that Nigeria is fighting hard to reduce the emission of greenhouse gases and encourage the planting of trees. The more the country is greatly deforested, the more our environment is susceptible to the effect of the greenhouse emission. Aside its environmental effects, its health hazards are enormous. A medical practitioner, Deborah Leader, in one of her articles stated: “The smoke from a wood burning stove releases pollutants, mainly in the form of toxic gases and particles. Numerous studies have linked particle levels to an increase in emergency room visits, hospital admissions, and even death from heart and lung disease.”

Residents of Benin City, the Edo State capital, are also not left out of this trouble.

Those who spoke to LEADERSHIP WEEKEND were unanimous in accusing the federal government of unleashing hardship on the people through the rude removal of fuel subsidy without recourse to its implications.

A renowned journalist, Dele Ojeisekhoba, is of the view that the family unit is the most affected, saying that such situation should not be allowed to happen again. He said some families were still in economic shock as a result of the strike, which completely shut down the nation.

According to him, “When you talk about the family as it were, it is an institution of its own that also requires the process of governance. You have to budget for your family and take it upon your children in terms of education; and when this is failing, you have to make provision in terms of economic muscle. We all know that a family differs economically from one another. It is also known that there are skirmishes for one inexplicable reason or the other, so if the breadwinner is failing you will normally expect some friction, and the effect can be devastating.

“The subsidy removal? painfully affected the economic purse of families, and I won’t be surprised to find some families adopting palliative measures. It was not in the best interest of families, and at the end of the day, when the family is disorganised you cannot have a society, let alone a government at the national level; it is the health of the people that determines the health of the nation. The nationwide strike and street protests ushered in multiple problems.’’

Others who also spoke to LEADERSHIP WEEKEND on this situation include Hauwa Achimugu, a banker, saying, “The effect is devastating. A plate of raw rice, which was sold at N250 now goes for as much as N300. I am not just happy about it at all; it’s not that there is any increment in salaries to warrant this for that one week of the strike. To stock up my house I spent nothing less than N30, 000 before the subsidy. I used to transport myself to work with N400 everyday, but now I spend N700, all on the old salary, I am not happy about it at all. Before you know it schools will increase their fees too, not forgetting landlords who increase rent rates at the slightest provocation.”

Mrs. Stella Takwal, a housewife said, “Times have become tough, but I believe it is for the better. In the mean time we have no choice but to adapt to the situation as best as we can. You won’t believe it, but a kilogramme of meat now goes for N1500 as against the usual N850 – N1,000. I have now resorted to buying turkey parts which now go for N950. There is no more meat for N200; you can only get it from N300 upwards. Tomatoes for N100 these days are just five pieces.

“The fuel subsidy has really changed our lives. My husband who used to give me N5000 every Saturday now gives me N3000. We have cut down on visitations because of the fuel wahala. I now calculate the transport fare before I go anywhere. So life is now difficult and we pray that government would revert to the old price or find an alternative for us. I am also thinking of looking for a job because the burden has become too much on my husband.”

Mr. Boniface, a civil servant said, “It’s biting into my pocket really hard. I can no longer give my wife N1500 for a pot of stew as I used to; I now give her nothing less than N3000. Well, we can’t do anything to change the situation; we will have to cut down our spending in the house since the subsidy has affected our finances. I intend to stay home more instead of going to the joint to spend money for the ‘boys’. I have also decided to change my children’s school to a more affordable one. The one they are attending now costs me about N100,000 every term, but with the subsidy situation, I will have to look for a school that will be around N50,000 or less.

In Birnin Kebbi the story is the same. The cost of living has shot up the roof, with those who were barely managing their lives now having to scrape what ever earnings they make just to survive.

Bello Liman told LEADERSHIP WEEKEND that he has a wife and 8 children to cater for. “ I pay school fees for 7? of the children; my income still remains the same despite the N18,000 minimum wage propagated by politicians during the last general elections. Now with the increase in the price of fuel everything has become more expensive. It is clear that this government does not have the masses at heart.”

Malama Fatima yar Tela, a widowed mother of 5 said she has been faced with hardship since her husband’s death. As a housewife, she has no means of livelihood. “ I could? barely feed my 5 children before, and now it’s even worse . I can’t even think? of sending them to school for now.” she laments.