Three Years After Subsidy Removal: Nigerians Still Waiting for Development

By Baba Lawan

Three years after the removal of fuel subsidy in Nigeria, millions of Nigerians are still asking painful questions about the direction of the nation’s economy and the meaning of the reforms promised by the government. What was introduced as a bold economic policy aimed at rescuing the country from financial crisis has instead brought widespread hardship, inflation, unemployment, hunger, and frustration among ordinary citizens.

When the subsidy was removed in 2023, Nigerians were told that the decision was necessary to reduce wasteful government spending, stop corruption in the oil sector, strengthen the economy, and redirect public funds toward development projects. Citizens were promised better roads, stable electricity, improved healthcare, quality education, job creation, industrial growth, and economic prosperity. The government repeatedly assured Nigerians that the suffering would only be temporary and that the sacrifices made by citizens would eventually produce long-term national benefits.

However, three years later, many Nigerians say they have not seen the expected transformation. Instead, the economic condition of ordinary citizens has worsened dramatically.

 At the time subsidy was removed, petrol prices increased from around ₦185 per litre to over ₦500 per litre almost immediately. Today, petrol prices in many parts of the country have risen to between ₦1,300 and ₦1,400 per litre depending on location and supply conditions. This massive increase in fuel prices has affected every aspect of life across the nation.

Transportation costs have become unbearable for workers, students, traders, and low-income earners. Commercial transport fares have multiplied several times, forcing many workers to spend a huge portion of their salaries on transportation alone. Food prices have also increased sharply because farmers and traders now spend far more transporting goods from rural communities to urban markets. Electricity tariffs continue rising, making life more difficult for both households and businesses already struggling to survive.

Across villages, towns, and cities, ordinary Nigerians now face one of the most difficult economic periods in recent history. The working class, peasants, commoners, traders, artisans, farmers, students, and unemployed youths remain the most affected by the current hardship. Families that once managed to eat three meals daily can now barely afford one or two meals. Parents are struggling to pay school fees, buy medicine, or provide basic necessities for their children.

Many citizens now survive through borrowing, informal labour, or assistance from relatives and friends. Small businesses continue collapsing because operating costs have become too expensive. Shop owners complain of low patronage because customers no longer have purchasing power. Manufacturers struggle with high electricity and fuel costs, while transport operators face enormous difficulties maintaining their businesses.

The situation of Nigerian youths has become particularly alarming. Despite repeated promises of economic transformation, unemployment and underemployment continue increasing. Millions of educated young Nigerians remain without stable jobs or meaningful economic opportunities. Some youths are forced to migrate abroad in search of better living conditions, while others fall into crime, drug abuse, internet fraud, or depression due to frustration and hopelessness.

One of the biggest disappointments for many Nigerians is that despite the removal of subsidy and the painful sacrifices made by citizens, government borrowing has continued increasing. Many citizens expected that subsidy removal would reduce the country’s debt burden and strengthen public finances. Instead, Nigeria continues taking new loans while ordinary citizens continue suffering under inflation, rising taxes, and worsening economic conditions.

This reality has raised serious concerns among scholars, economists, intellectuals, and ordinary citizens. If subsidy removal was meant to free resources for development, where are the visible results? Why are hospitals still lacking adequate facilities and medicines? Why are schools still facing poor funding and deteriorating infrastructure? Why are roads still in terrible condition in many communities? Why is electricity still unstable despite repeated promises of improvement?

Several scholars and intellectuals have linked Nigeria’s continued underdevelopment to corruption, poor governance, weak institutions, and dependence on foreign economic structures. Political economists Joachim Chukwuma Okafor and Abiodun Omotayo Oladejo argued that the removal of fuel subsidy deepened poverty and reflected pressure from international financial institutions rather than policies designed to protect vulnerable Nigerians.

Other scholars such as D.O. Uduma and O.O. Osi also observed that Nigeria’s underdevelopment is connected to weak leadership, corruption, poor economic planning, and excessive dependence on oil revenue. According to their arguments, Nigeria continues struggling because many economic policies fail to support agriculture, local industries, manufacturing, and productive sectors capable of creating sustainable jobs and national development.

Dependency theorists have long explained how colonialism and global capitalism contributed to Africa’s economic challenges. During the colonial period, African economies were largely designed to supply cheap raw materials to foreign powers while depending on imported goods and foreign industries. After independence, many African countries, including Nigeria, remained trapped in economic dependency through foreign loans, oil exports, and import-based economies.

Today, many intellectuals believe Nigeria’s overdependence on crude oil remains one of the country’s biggest economic weaknesses. Instead of heavily investing in agriculture, industrialization, technology, and manufacturing, the nation continues relying mainly on oil revenue. As a result, fluctuations in global oil prices often create instability in the Nigerian economy.

International financial institutions such as the IMF and World Bank have repeatedly supported subsidy removal policies in Nigeria, arguing that subsidies are expensive and unsustainable. However, many analysts argue that reforms without effective social protection systems often worsen poverty and inequality. In many developed nations, difficult economic reforms are usually accompanied by strong welfare systems, transportation support, healthcare assistance, and unemployment benefits designed to protect vulnerable citizens. Many Nigerians believe such protections remain weak or ineffective in Nigeria.

Economic analysts have also warned that subsidy removal without proper preparation would increase inflation and reduce household welfare. Several studies examining fuel subsidy policies in Nigeria concluded that subsidy removal often increases transportation costs, production expenses, and food inflation, especially when governments fail to provide alternative economic support systems.

Today, the suffering of ordinary Nigerians is visible everywhere. Workers spend large portions of their salaries on transport. Traders complain that customers can no longer afford basic goods. Farmers struggle with rising production and transportation costs. Students face increasing educational expenses, while many families can barely afford rent, food, medicine, and electricity bills.

Despite these painful realities, Nigerians continue demonstrating resilience and determination. Farmers still cultivate crops despite insecurity and economic difficulties. Traders continue opening their shops despite low patronage. Workers continue reporting to work despite poor wages and high transportation costs. Parents continue sacrificing for the education and survival of their children despite severe hardship.

However, resilience alone cannot replace responsible leadership and effective governance. Citizens need practical reforms that directly improve their daily lives. Nigerians want stable electricity, affordable healthcare, quality education, good roads, food security, industrial growth, and job opportunities. Citizens want public funds used transparently for national development rather than corruption, wasteful spending, or luxurious lifestyles among political elites.

Many Nigerians are increasingly frustrated by the growing gap between leaders and ordinary citizens. While millions struggle to survive, political leaders continue moving in expensive convoys, organizing costly political events, and maintaining luxurious lifestyles funded by public resources. This situation has deepened public anger and distrust toward the political class.

Historically, societies experiencing severe inequality, poverty, and hardship often witness growing social tension and instability. During the colonial and post-colonial eras, ideologies such as socialism, capitalism, and communism spread across many societies because ordinary people sought systems capable of reducing exploitation and inequality. In Africa, colonialism introduced economic systems that often benefited elites and foreign interests while leaving ordinary citizens in poverty.

Nigeria remains blessed with enormous human and natural resources. The country possesses talented youths, fertile agricultural land, entrepreneurial citizens, and vast economic potential. Yet resources alone cannot produce development. Development requires honest leadership, transparent governance, industrial growth, investment in education and healthcare, anti-corruption measures, and economic policies that prioritize ordinary citizens rather than privileged elites.

Three years after subsidy removal, millions of Nigerians still feel abandoned, frustrated, and economically trapped. Instead of witnessing prosperity and development, many citizens continue facing hunger, inflation, unemployment, insecurity, and uncertainty about the future. Until reforms begin producing visible improvements in the lives of ordinary Nigerians, many citizens will continue asking the same painful question: where is the development Nigerians were promised?