By Macdonald Jacob Tumbo
The Collective Movement (TCM), an advocacy movement committed to good governance and accountability in Nigeria, raises a pressing national concern: Where are the visible gains from recent economic policies that have significantly increased the burden on citizens? Since the transition of power from Muhammadu Buhari to Bola Ahmed Tinubu, Nigerians have been asked to endure difficult reforms with the promise of long-term national benefits. However, the lived reality of the people suggests a widening gap between policy and impact.
The removal of fuel subsidy was introduced as a bold and necessary step to free up government revenue and redirect resources toward national development. In principle, this policy was expected to eliminate inefficiencies and create fiscal space for infrastructure, healthcare, education, and industrial growth. In practice, however, the immediate effect has been a sharp increase in fuel prices, triggering a chain reaction across the economy.
Transportation costs surged almost instantly, leading to a corresponding rise in the price of food, goods, and services. Inflation has significantly eroded purchasing power, placing immense pressure on households already struggling with stagnant incomes. For many Nigerians, the cost of living has multiplied, while income levels have remained largely unchanged.
At the same time, taxation has intensified across multiple levels of government. From Value Added Tax (VAT) to various levies imposed by federal, state, and local authorities, citizens and businesses are experiencing a heavy and often overlapping tax burden. While taxation is a legitimate tool for national development, it must operate on a principle of value exchange. Today, many Nigerians are paying more, yet receiving less in terms of public services and infrastructure.
This raises a fundamental concern: Why is the financial pressure on citizens increasing without a corresponding improvement in national development? Roads remain inadequate, power supply continues to be unstable, and public institutions struggle to deliver efficient services. The expected benefits of reform are not clearly visible in the daily lives of the people.
Equally concerning is the continued rise in Nigeria’s debt profile. One of the central justifications for subsidy removal was to reduce fiscal strain and limit the need for borrowing. Yet, borrowing persists at an alarming rate. This contradiction calls for urgent clarification. If subsidy savings and increased tax revenues are being generated, why is the nation still relying heavily on debt?
Nigeria’s industrial and business environment is also under significant strain. High energy costs, exchange rate volatility, declining consumer demand, and multiple taxation layers have combined to create a hostile environment for businesses. Manufacturing companies are scaling down operations or shutting their doors entirely, while small and medium enterprises are finding it increasingly difficult to survive.
