Fuel Subsidy Removal: How Nigerians Are Adjusting to the New Economy

When the government announced the removal of fuel subsidy, it felt like a sudden shock to many Nigerians. For decades, cheap fuel was seen as one of the few benefits citizens enjoyed from the government. Overnight, that changed. Prices went up, transport fares doubled or tripled, and the cost of food and basic goods followed.
Months later, Nigerians are still adjusting. Some have found creative ways to cope. Others are struggling to keep up. But one thing is clear, the change has forced people to rethink how they live, spend, and survive.
How Nigerians Are Adjusting to the New Economy

A Quick Look at What Happened

Fuel subsidy was a system where the government paid part of the cost of fuel so people could buy it at a lower price. It sounded good in theory, but it cost the government billions every year. Critics said the subsidy mostly benefited the rich and oil marketers, not ordinary people.
When the new administration decided to remove it, the goal was to save money and use it for development. But in practice, it brought hardship to millions. Transporters increased fares. Shop owners raised prices. The cost of living went up almost instantly.
Many Nigerians didn’t have time to prepare. Salaries stayed the same while expenses doubled. For most people, life became a daily struggle to stretch what little they had.

How It Affects Everyday Life

The removal of fuel subsidy has touched every part of life in Nigeria. It’s not just about fuel; it’s about everything connected to it.

1. Transport and Mobility

The first thing people noticed was transportation. Bus fares went up within days. For someone who used to spend ₦500 on transport daily, the cost might now be over ₦1,000 or more.
Workers who commute from one part of the city to another have had to adjust. Some now walk part of the way. Others share rides or carpool with friends. Many prefer to work from home when possible.
Motorcyclists and tricycle riders (okada and keke) also raised their prices to meet the higher cost of fuel. That change has hit low-income earners the hardest.

2. Food and Goods

Fuel affects almost everything in Nigeria’s economy because goods are transported by road. When fuel prices rose, the cost of moving goods from farms to markets increased. That made food prices rise sharply.
A bag of rice that used to sell for ₦30,000 is now above ₦50,000 in some places. Bread, cooking oil, and even sachet water have gone up. Families who could afford three meals a day now struggle to eat twice.
Some people have turned to buying in bulk or joining cooperative buying groups to save money. Others go to local markets where food is cheaper than in big supermarkets.

3. Small Businesses

Small business owners are among those feeling the hardest hit. Tailors, hairdressers, and welders rely on fuel to power generators. Without steady electricity, they can’t depend on the national grid.
Now that fuel is expensive, running a generator eats into profits. A tailor who used to make ₦5,000 profit per day might now make half of that. Some have raised their service prices, while others have cut back on working hours.
Shop owners also face higher costs for transportation and storage. These challenges make it hard to keep prices stable, and customers often complain or reduce what they buy.

How Nigerians Are Adjusting

Despite the pressure, Nigerians have always found ways to adapt. It’s part of the national spirit survival through creativity and resilience. Here’s how people are coping:

1. Using Public Transport More Wisely

Some commuters now plan their trips more carefully. Instead of going out several times a day, they combine errands into one outing. People who used to drive their cars daily now leave them at home for shorter trips or share rides.
In some cities, bike-hailing and ride-sharing services are gaining more users. While not always cheaper, they help people manage costs by avoiding multiple buses or taxis.

2. Turning to Renewable Energy

The rise in fuel cost has also made people look for alternatives. Solar panels and rechargeable lamps are becoming more popular. Even in rural areas, small solar systems are helping reduce the need for fuel generators.
Families use solar kits to charge phones and power fans. Some schools and churches have installed larger solar systems to reduce expenses. Although the initial cost is high, many see it as a long-term solution.

3. More Home Businesses

With transportation costs rising, some people now prefer to work from home. Those who can bake, sew, or sell online are finding ways to earn without leaving their houses.
Social media platforms like Instagram, WhatsApp, and TikTok have become mini marketplaces. Many small vendors use them to reach customers without paying for shop rent or daily transport.

4. Community Support and Sharing

In many communities, people are helping each other. Neighbors share meals, fuel, or even transport rides. Churches, mosques, and community groups organize small support programs, like food drives or cooperative savings to help families in need.
This sense of togetherness has softened the impact for some, even if only a little. It shows that Nigerians, when faced with hardship, still find strength in unity.

The Struggle of the Middle Class

For the middle class, life has become a tight balancing act. They earn just enough to avoid poverty but not enough to stay comfortable.
Many are cutting down on luxury spending. Families are reducing outings, vacations, and even private school choices. Some parents have moved their children to public schools to save costs.
People are also being more careful about electricity use, data subscriptions, and fuel consumption. The idea now is simple “cut waste wherever possible.”

The Poor Are Feeling It the Most

For low-income Nigerians, the impact has been severe. Daily earners like bus drivers, cleaners, and traders feel the pain the most because they depend on small daily incomes.
A woman who sells food by the roadside must now spend more on ingredients and transportation. Yet, she can’t increase her prices too much, or customers will stop buying.
Some families have gone from eating meat daily to only once a week. Children’s school attendance has dropped in some areas because parents can’t afford transport or lunch money.
It’s not just about economics; it’s about survival.

Government Promises and Public Reaction

The government promised that the money saved from removing subsidy would be used to improve the economy. They spoke of building refineries, improving roads, and investing in education and health.
But many Nigerians are yet to feel the benefits. While some palliatives and cash transfers were announced, not everyone received them. Others felt the relief was too little to make a real difference.
People want more transparency. They want to see visible results for better roads, working schools, stable electricity, and affordable food. Until that happens, public trust will remain low.

Calls for Local Refining

One major argument many Nigerians make is that if local refineries worked, fuel wouldn’t be so expensive. Importing refined fuel means Nigeria pays in foreign currency, which adds more pressure to the economy.
The hope is that private refineries like Dangote’s will reduce that dependency. Once local production increases, fuel prices might drop slightly, though not to the old subsidized levels.
Still, most citizens believe local refining and stable power are the keys to reducing the cost of living in the long term.

Innovation and Creativity

Hardship often brings innovation. Across Nigeria, some people are coming up with creative ideas to survive the new economy.
Tech workers are freelancing online to earn in dollars.
Farmers are forming cooperatives to share costs and transport.
Transport unions are exploring the use of gas-powered vehicles, which are cheaper to run.
Young entrepreneurs are selling solar kits, rechargeable fans, and inverters.
These small shifts show how Nigerians are turning challenges into new opportunities.

The Emotional Side of the Crisis

Beyond the economics, there’s a human story. People are tired. The stress of managing limited money is taking a toll.
Parents worry about feeding their children. Workers are burnt out from long commutes and low pay. Students are struggling with increased school fees and transportation costs.
Many say they feel forgotten by the government. Yet, they keep pushing forward, hoping things will get better.

What Lies Ahead

The fuel subsidy removal is a painful but important turning point for Nigeria. In the short term, it has brought hardship. But in the long term, it could lead to a more sustainable economy, if the right steps are taken.
For that to happen, the government must focus on three main things:
1. Supporting local production – from fuel refining to food processing.
2. Investing in public transport – affordable buses and trains can ease the pressure.
3. Providing targeted support – real help for low-income families and small businesses.
Without these steps, the gap between the rich and poor will only grow wider.

The Nigerian Spirit

Through all of this, one thing stands out, the resilience of Nigerians. Even when things are tough, people still find reasons to laugh, to hope, and to believe that tomorrow will be better.
At bus stops, in markets, and on social media, the conversations continue. People share their struggles but also their strategies. Some are angry. Others are patient. But most agree that Nigeria has to change, and maybe this is the start of that change.

The fuel subsidy removal has forced everyone to face hard truths about how the country runs and what must improve. It has also reminded us that survival in Nigeria isn’t just about money; it’s about creativity, community, and courage.

In the end, Nigerians are adjusting, not because it’s easy, but because they have no choice. They are adapting, finding new paths, and holding on to hope. It may take time, but with effort, transparency, and genuine leadership, the pain of today could become the foundation for a stronger economy tomorrow.

by Sunday S

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