Reforms pain Nigeria’s struggling families

Over the past year, Nigeria has embarked on major economic reforms, from the removal of fuel subsidies to exchange rate unification and fiscal policy adjustments. These reforms have however hit several families hard.

Analysts say they are great reforms but have also raised inflation and the general cost of living. Inflation stood at 34.8 percent in December 2024, up from 34.6 percent in the previous month.

Jane Okole, a Lagos-based trader, with a family of six struggles to pay her children’s school fees. She earns N100,000 monthly while her husband’s salary is N130,000.

“My husband and I earn N230,000 in total, but that is not enough to take care of the family needs. By the time we buy food and pay our transport fares to work, the salary is reduced to nothing. We borrow at least extra N100,000 every month afterwards.”

Fuel subsidy removal: Promises vs. reality

In his inaugural speech in May 2023, President Bola Tinubu announced the removal of the longstanding fuel subsidy, citing its unsustainability and the need to redirect funds toward infrastructure, healthcare, and education. However, the immediate effects were severe. Fuel prices tripled overnight, transportation costs soared, and inflation worsened, particularly affecting small businesses and low-income earners.

“My transport fare has doubled,” said Adeola Olakunle, a Lagos-based trader. “I don’t know how subsidy removal has benefited me.”

Sam Ude, an Abuja-based civil servant, said he rarely drives his car.

“I drive only twice each week,” he said. “We have also cut down on our spending at home.”

While the government introduced measures like cash transfers and transport subsidies, implementation has been slow, and many remain skeptical about their effectiveness.

Oluwatosin Tijani, a public affairs analyst, is among those unconvinced. “At some point, the government said it would embark on major infrastructure projects with the savings from subsidy removal,” he said. “But as we speak, you can hardly point to any significant changes.”

For many, the reality is that subsidy removal has yet to deliver tangible benefits, and trust in the government’s ability to follow through on its promises remains low.

Read also: Nigeria’s economic hardship: The toll of policy decisions and mismanagement

Forex unification: A bane for consumers

The unification of Nigeria’s foreign exchange rates was another bold reform aimed at attracting investment and stabilising the naira. While welcomed by economists, its immediate consequences have been painful. The naira’s depreciation has led to skyrocketing costs for imported goods, including essential medicines and food.

“Cost of importation has tripled in the last year,” said Daniel Imoh, a small business owner in Ikeja. “I don’t think the government is doing anything to solve this issue.”

Abiola Babalola, a public policy analyst, highlighted the double-edged nature of the policy. “The reforms were meant to address economic challenges, but they’ve caused inflation and hardship. Fuel prices keep rising, which affects the cost of goods and services,” he said.

Kate Bruno, a mother of three, said she now begs to survive.

“My husband is dead. I earn a salary where I work, but that only lasts till 15th of every month,” Bruno, who earns N85,000 at a Port Harcourt firm, said.

“I borrow to pay my children’s school fees.”

Transparency and public awareness: The missing link

Despite the far-reaching impact of these reforms, many Nigerians remain uninformed or misinformed about their rationale and projected benefits. The government has communicated policy updates through press releases, ministerial briefings and social media, but accessibility and clarity remain major gaps.

“There should be a website or public tracker where Nigerians can see progress made so far,” suggested Babalola. “This would improve transparency, keep the people informed and draw more support for the reforms.”

Countries like Ghana and Kenya have implemented citizen-friendly dashboards that provide real-time updates on government policies. A similar approach in Nigeria could enhance public trust and engagement, analysts suggested.

Better communication is needed

Beyond government-led communication, civil society organisations (CSOs), the media and grassroots advocacy groups play a vital role in breaking down complex policies and holding leaders accountable. Groups like BudgIT simplify government policies for public understanding, while journalists educate the public and also counter misinformation.

Social media has emerged as an alternative space for engagement, with Nigerians using platforms like X (formerly Twitter) and Facebook to voice concerns. However, digital engagement alone is insufficient.

“The government is not communicating well enough with the citizens,” Tijani noted. “There should be monthly or quarterly town hall meetings, presidential media chats to allow direct feedback from the masses who are directly impacted by the reforms.”

“You don’t talk about reforms with an over bloated cost of governance, financial mismanagement, and extravagant spending on luxury items,” he said. “A government with a trust deficit will struggle to get public support.”