Open Letter to President Bola Tinubu: Fuel Price Hike In Nigeria, Scarcity, Solutions and Way Forward

By Abbati Bako

Global economic policies differ between advanced and emerging nations. Many African leaders lack a global perspective, hindering economic growth. The 1938 and 2008 economic meltdowns highlighted the need for tailored solutions for emerging economies. The Washington Consensus and Beijing Consensus offer frameworks for economic reform (although Washington Consensus of 1989 is still debatable). While some criticize these prescriptions, nations like Brazil, Saudi Arabia, Mexico, and Kenya seem to have successfully implemented reforms. Although in Kenya there are still problems.

Nigeria’s economic reforms are ongoing, despite challenges but care must be taken to avoid the truncation of the 25 years of hard earned democratic system. The country must adopt policies to boost its economy, such as tax reform, privatization, protection of intellectual property, diversification of economy, removal of subsidies and investments in human capital financing free primary and secondary education. The global economic interplay is crucial, with international trade and services driving growth. Nigeria’s reliance on oil exports hinders its economic progress. Countries such as Brazil, Netherlands, Saudi Arabia and many emerging nations have more reliance on agrarian economic growth and development than reliance on oil. The oil market will be depleted in the years to come. The year 2030 is crucial to oil dependent nations.

*Comparative Analysis of Fuel Scarcity and Price Hike—

The fuel price hike and scarcity in Nigeria are symptoms of a larger economic problem. The country’s reliance on oil exports and lack of diversification have made it vulnerable to global market fluctuations. To address this, Nigeria must invest in alternative energy sources, promote local industries, and enhance its trade and services sector. Otherwise, the economic precarity, meltdown and stagflation will continue till eternity.

*Historical Context of Fuel Scarcity in Nigeria-

Fuel scarcity has been a recurring issue in Nigeria, with past governments implementing various solutions with limited success. The current administration’s efforts to address the issue are not enough, but more needs to be done to ensure sustainable solutions. The Dangote’s refinery must be given maximum support by the current Tinubu’s government with a view to reduce the importation of refined oil into the country and save foreign reserves for the country.

*Current State of Fuel Scarcity and Price Hike

The recent fuel price hike has exacerbated the scarcity, causing widespread hardship, inflation, economic aridity and precarity for Nigerians. The government must take urgent action to address the issue, including:

1. Diversifying the economy to reduce reliance on oil exports
2. Investing in alternative energy sources, such as solar and wind power
3. Enhancing local refining capacity to reduce dependence on imports
4. Implementing effective price control measures to protect consumers
5. Promoting transparency and accountability in the oil sector
6. And petrol price must not exceed #500.00 per liter
7. This will definitely make the current government more popular and otherwise the election year 2027 will be crucial for the party APC and the President.

*Way Forward

To achieve sustainable economic growth, Nigeria must adopt a comprehensive approach that addresses the root causes of fuel scarcity and price hikes. This includes:

1. Developing a robust economic diversification strategy
2. Investing in human capital and infrastructure development
3. Enhancing trade and services sector growth
4. Promoting good governance and transparency in the oil sector
5. Encouraging private sector participation in the economy
6. To invite more foreign direct investments (FDI) into the country.

*To address the fuel price hike and scarcity, the Nigerian government should consider the following recommendations ASAP

1. Establish a robust fuel price regulatory framework to protect consumers and ensure transparency.
2. Invest in alternative energy sources, such as solar and wind power, to reduce dependence on oil.
3. Enhance local refining capacity to reduce imports and promote energy security.
4. Implement effective tax reform measures to boost revenue and reduce reliance on oil exports.
5. Promote transparency and accountability in the oil sector through regular audits and public disclosure.
6. Encourage private sector participation in the economy through incentives and investment-friendly policies.
7. Develop a comprehensive economic diversification strategy to reduce reliance on oil exports.
8. Invest in human capital development through education and skills training programs.
9. Enhance trade and services sector growth through infrastructure development and investment incentives.
10. Foster good governance and transparency in the oil sector through institutional reforms and capacity building.

*To ensure effective implementation of these recommendations, the Nigerian government should:

1. Establish a high-level task force to oversee the implementation process.
2. Set clear timelines and milestones for each recommendation.
3. Allocate necessary resources and funding to support implementation.
4. Engage stakeholders, including civil society, private sector, and international partners, to ensure broad support and participation.
5. Monitor progress regularly and make adjustments as needed.

*Conclusion

The fuel price hike and scarcity in Nigeria are complex issues that require a comprehensive and sustainable solution. By addressing the root causes and implementing effective policies, Nigeria can achieve economic growth and prosperity for its citizens. The recommendations outlined above provide a roadmap for addressing these challenges and promoting sustainable economic development in Nigeria.

Dr. Abbati Bako, Political Strategy and Communications Consultant, IPRC, Nigeria