Micheal Shote Subsidy Removal Is Not Nigeria’s Main Problem

 

Insecurity and Mismanagement Are

In recent times, public debates have intensified about the suffering of Nigerians and the removal of fuel subsidies. 

Some commentators, including certain academics, have argued that the hardship Nigerians are experiencing today is largely the result of the government’s decision to remove fuel subsidies.

However, this view oversimplifies the situation and ignores deeper structural problems that have existed in Nigeria for decades.

While subsidy removal has contributed to short-term economic difficulties, it is important to recognize that the policy itself is not the root cause of Nigeria’s suffering. In fact, removing the subsidy is something that should have been done many years ago if the country had been properly managed.

The Greedy Beneficiaries of the Subsidy System

For decades, fuel subsidies were presented as a policy meant to help ordinary Nigerians by keeping fuel prices low. In reality, the system mainly benefited a small group of greedy and selfish individuals who profited from the importation and distribution of refined petroleum products.

Because the government spent huge amounts of money subsidizing petroleum products, these individuals made enormous profits from importing fuel instead of encouraging local refining. The more fuel that was imported, the more money they made from subsidy payments.

Due to the massive amount of money these greedy and selfish individuals collected from the subsidy system, they had no interest in seeing Nigeria develop a strong domestic refining industry.

In fact, many Nigerians believe that these same individuals are the reason Nigeria’s refineries have remained in a terrible state for so many years. Because their profits depended on fuel importation, they allegedly worked to ensure that the country’s refineries remained dysfunctional.

In other words, the people benefiting from subsidies had every reason to keep the refineries weak and ineffective in order to protect their selfish interests.

The Collapse of Nigeria’s Refineries

Nigeria has several major refineries located in Port Harcourt, Warri, and Kaduna. If these refineries were operating efficiently, they could provide employment for thousands of Nigerians and significantly reduce the country’s reliance on imported fuel.

For example, the Port Harcourt refinery alone could employ thousands of workers if it were fully operational. The same is true for the refineries in Warri and Kaduna. These facilities should have served as major industrial centers capable of boosting the economy, creating jobs, and strengthening Nigeria’s energy independence.

Instead, they have been neglected for decades. The continued dependence on imported fuel only benefited those who were profiting from the subsidy system.

The Real Crisis: Insecurity and the Struggles of Farmers

While economic policies receive most of the attention, one of Nigeria’s biggest problems today is insecurity. Terrorist groups, bandits, kidnappers, and other criminal networks have made life extremely difficult for many Nigerians, especially those living in rural communities.

Many farmers—who form the backbone of Nigeria’s food production—can no longer safely go to their farms because of the threat of violence and kidnapping. As a result, large areas of fertile land remain uncultivated.

This situation has serious consequences for the entire country. When farmers cannot work, food production decreases, food prices increase, and the suffering of ordinary citizens becomes worse.

Until Nigeria addresses the problems of terrorism, banditry, and rural insecurity, economic hardship will continue regardless of fuel pricing policies.

It is also important to understand that the current administration did not create these terrorist groups. Groups such as Boko Haram and other criminal networks existed long before the present government came into office. 

Many of these groups are believed to have connections that extend beyond Nigeria’s borders, including influences from neighboring countries such as Niger, Mali, chard and other parts of the region. Which president Bola Tinubu doesn't know about how they came into Nigeria.

The presence of these groups is therefore a complex regional security challenge that requires serious long-term solutions.

Academic Titles Do Not Guarantee Wisdom

The fact that someone holds the title of professor does not automatically mean that their opinion on national issues is correct. Academic titles are important and deserve respect, but they should not prevent Nigerians from critically examining the arguments being presented.

There are many professors in Nigeria who have spent most of their lives within the country and may not have had enough exposure to how certain economic systems operate in other parts of the world.

A civilized society should encourage open discussion and critical thinking rather than accepting opinions simply because they come from someone with an academic title.

Lessons from Developed Countries

In many developed countries, governments do not subsidize the production of crude oil. Instead, petroleum products are often taxed, and the revenue generated is used to support infrastructure, healthcare, education, and other public services.

These countries focus on building strong institutions, maintaining efficient refining systems, and encouraging transparency in the management of national resources.

Nigeria can learn from these examples by prioritizing efficiency, accountability, and domestic production rather than maintaining subsidy systems that encourage corruption and economic inefficiency.

The Way Forward

Removing subsidies alone will not solve Nigeria’s problems, but it can be a step toward reforming the energy sector if it is combined with other important policies.

First, the government must strengthen security so that farmers can safely return to their farms and restore food production. Second, Nigeria must revive and modernize its refineries to reduce dependence on imported fuel. Third, transparency and accountability must be improved in the management of national resources.

Only by addressing these key issues can Nigeria begin to move toward real economic stability and national development.

Conclusion

The suffering faced by many Nigerians today cannot be blamed solely on the removal of fuel subsidies. The real problems lie in decades of mismanagement, the neglect of local refining capacity, and the growing security challenges affecting rural communities.

Rather than focusing only on subsidy removal, the national conversation should concentrate on fixing Nigeria’s structural problems—especially insecurity, corruption, and the failure to develop domestic industries.

If these issues are addressed with sincerity and determination, Nigeria has the potential to transform its vast natural resources into prosperity for all its citizens.