United Nations Unveils The Damage Fuel Subsidy Removal in Nigeria is Causing

According to recent reports from the United Nations, the elimination of petrol subsidies in Nigeria has resulted in significant harm to its citizens. The UN highlighted that approximately 700,000 children residing in the northern region of the country are now facing an alarming risk of hunger and malnutrition. The situation has been further aggravated by the surge in petrol prices observed nationwide.

The United Nations emphasized that the removal of fuel subsidies has exacerbated the battle against extreme hunger in Nigeria, particularly in the northern parts of the country. The soaring energy prices, resulting from the withdrawal of subsidies, have added to the challenges faced by vulnerable populations, amplifying the severity of the crisis.

On Wednesday, June 28, 2023, Matthias Schmale, the United Nations’ Senior Humanitarian Representative in Nigeria, expressed grave concern over the escalating crisis of life-threatening malnutrition among approximately 700,000 children under the age of five. This distressing situation has witnessed a significant expansion over the past year.

Among the population of 4.3 million individuals residing in the North Eastern states of Borno, Adamawa, and Yobe, Matthias Schmale highlighted that the aforementioned 700,000 children under the age of five are particularly vulnerable to acute hunger. The dire circumstances encompassing these regions pose a severe threat to the well-being and survival of these individuals.

He said:

“I have been to Borno and the other two states several times. I’ve seen mothers fighting for the lives of their malnourished children in nutrition stabilization centers.”

Schmale cautioned that the prevailing catastrophic situation is predominantly a result of over a decade of insecurity and insurgency in the region, whereby non-state actors have impeded farming activities and the ability of individuals to sustain their livelihoods from the land.

Furthermore, he emphasized that the insecurity has led to additional adverse consequences, including the impact of extreme weather events such as flooding in Nigeria, which has affected over four million people.

The World Food Programme has unveiled a humanitarian aid initiative for the North East in response to the escalating crisis. However, according to a research report by the United Nations, only 25% of the required $1.3 billion in humanitarian aid has been received thus far. The report also noted that the worsening crises related to food, fuel, and fertilizers have further aggravated the situation.

To address the mounting hunger crisis, the World Food Programme has introduced a $2.5 billion Country Strategic Plan (CSP) targeting Nigeria, focusing on combating malnutrition in specific areas of the North East.

The outlined framework aims to achieve improved nutrition and food security in Nigeria by the year 2030, aligning with the objectives set forth by Sustainable Development Goal 2.

In a significant development, Nigeria’s newly inaugurated President, Bola Tinubu, declared the termination of the country’s tumultuous subsidy program, which has incurred trillions of dollars in expenses over the years. Following the announcement, petrol prices immediately surged throughout the nation, as the Nigeria National Petroleum Company Limited (NNPC) adjusted its pricing structure.

The price adjustment, adopted by other prominent petroleum marketers in the oil-rich nation, resulted in inflation, currently standing at 22.04 percent according to the National Bureau of Statistics (NBS).

President Tinubu unveiled his decision to eliminate fuel subsidies during his inaugural address at the Presidential inauguration held at Eagles Square, Abuja, on Monday, May 29. As reported by Legit.ng, Tinubu emphasized that his administration will not continue the practice of fuel subsidies.

According to the Nigerian Tribune, Tinubu is well aware of the subsidy removal outlined in the 2023 budget, which was already in effect prior to his administration taking charge. He recognized that the country cannot sustain the burden of fuel subsidies any longer.