The impact of fuel subsidy removal in Nigeria has been felt in every sector of the economy. As various sectors grapple with the resultant price hikes and lower disposable income of Nigerians, TEMITAYO JAIYEOLA examines how this may affect the logistics and mobility sectors of the economy
• Postmaster General/Chief Executive Officer of the Nigerian Postal Service, Mr Adepoju SundayThe impact of fuel subsidy removal in Nigeria has been felt in every sector of the economy. As various sectors grapple with the resultant price hikes and lower disposable income of Nigerians,Everything changed after President Bola Tinubu, said, “Subsidy is gone,” during his inauguration speech on May 29.
Because of the importance of petrol to the Nigerian population, the government had been subsidising it, ensuring that it was within the reach of the average individual. But according to many economists and multilateral bodies, fuel subsidy had been hurting the country’s economy.
Mobility startups such as Bolt and Uber are already facing pushback from drivers asking for a 200 per cent increase in fare prices. Logistics firms, with bikes colouring major cities like Lagos and Abuja, are also faced with an uphill task.The General Manager of Paralex Logistics, Zainab Sadiku, told The PUNCH, “The most important part of our business is fuel, without it, we cannot move.
According to the Chief Executive Officer of Moma Couture, Ganiyu Adebola, relying on logistics services is fast becoming a luxury. Idebuemi Faith, who runs an online retail store, explained to The PUNCH, that businesses are now having to bear part of the logistics cost in order to keep their customers.Call-ride battle: High fuel price erodes revenue, drivers protest operators’ commission
Many experts have said that without logistics, there is no commerce as it facilitates trade, and drives the growth of the economy. However, this sector, which has been struggling to reach its full potential, is now at a crucial point. According to the rider, the trip used to cost her N3,200 to N3,600. Another rider, who gave his name as Percy, said he had to reduce his movement around Lagos because of the surge in prices.
The Chairman of the Media and Publicity Committee of the union, Jossy Olawale, said, “When you look at the percentage of increase of fuel price, you will realise that it is ranging between 256 per cent to over 300 per cent.
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