The Impact Of Inflation And Subsidy Removal On The Low Income Earners In Nigeria

By Dorcas Sunday

Inflation in a simple term, can be described as rise in prices of goods and services, which can result in the decline of purchasing power over time. The recent removal of fuel subsidies in Nigeria has led to immediate and alarming increase in fuel prices which triggered a chain reaction, causing higher transportation costs and ultimately contributing to inflation. A recent checked on the CBN website (December 2023) posted inflation rate at 28.2% as at November, 2023.

Virtually the cost of all goods and services has geometrically risen. The cost of transportation, foodstuffs, clothing, school fees, healthcare etc. has caused most people to forcefully adjust and some totally abstain from consuming some basic items and services.

Petrol which hitherto was selling for less than N200/liter is now sold for about N617liter on official price and almost N700 at unofficial prices.  Also a bag of Rice which is sold for less than 20,000 is now above 50,000.00, Milk and Milo tin that were sold for 1000 is now about 5000. Indeed almost all consumables have increased their prices at more than 60%.

Meanwhile, there has been no corresponding changes or increased in the income and wages of our parents who work in public places and in the private sectors. Majority of them are low income earners. These challenges have impacted immensely on the psychology of most people and translating into various forms of frustration, depression, sickness and sometimes death due to lack of resources to pay medical bills.

For us that are students who rely on our parent’s income for school fees, feeding and general upkeep, the experince has also not been easy. This gives me serious concern considering the stress our parents go through to make ends meet with nearly constant income and skyrocketed cost of consumables and services. Not forgetting some parents who are confronted with house rent increment in this trying moment.

It is in public domain that government is making concerted efforts toward alleviating this challenges with particular emphasis on the high cost of goods and services. However, the need to draw the attention of government to act fast as the poverty rate is reaching rooftop as a result of low purchasing power of the mass people.

Much as the policy of the subsidy removal is for the good of the nation as claimed by government and as a measure to eliminate corruption in the oil industry, the government should hastily make adequate provision and put in place strategy for cushioning effect of the untold hardship the measure has caused.

The impact of the current rise in the cost of basic goods and services, the government is enjoined to do more on the area of palliatives, job creation opportunities at lower level and fight corruption in the all sphere of the economy.

In my candid opinion that the rich and philanthropists in the society should also support government by rolling out palliative to the less privilege. This will help in curbing the high rate of crime in the society. The religious should not be left out in this clarion call. All citizens are also invited to be their brother’s keeper.

In my conclusion, I wish to call on the government at all levels, all corporate organizations and all well-meaning Nigerians to take responsibility, come up with policies and measures to alleviate the sufferings in the land. Specifically, to reduce the pains of the masses.

Government is enjoined to urgently increase the palliative measures and reach out to more people in the lower class by declaring free medical treatment for low income earners, reduction in school fee, tax relief for small businesses. Keep investing in critical infrastructure that will lead to mass job creation, provide agricultural support to the rural areas and ensure the students’ loans scheme is implemented properly.

Sunday is a 200 Level Mass Communication                                                                                        Department, Veritas University Bwari, Abuja.                                                                                       (Dorcaskizito@gmail.com)