Business
Obasanjo Criticizes Fuel Subsidy Removal Amid Rising Inflation and Protests
In a recent interview with the Financial Times, former Nigerian President Olusegun Obasanjo addressed the reemergence of the fuel subsidy in Nigeria, attributing its return to the inflationary pressures that have arisen since its removal.
The fuel subsidy, which was abolished in June 2023 by President Bola Tinubu’s administration, has reportedly reappeared due to escalating inflation, according to Obasanjo.
Obasanjo criticized the manner in which the subsidy was eliminated, arguing that the government failed to implement necessary preparatory measures before its removal.
He emphasized the need for a more strategic approach, suggesting that the removal of the subsidy was executed abruptly without adequate planning.
“The subsidy we thought we had removed is effectively back because of inflation,” Obasanjo noted.
He highlighted that there is considerable work required to address the economic issues at hand and called for a transition from a transactional economy to a transformational one to bolster investor confidence in Nigeria.
His comments come in the wake of persistent hunger protests across the country. These demonstrations, which began last Thursday, have now stretched into their fifth day, with a major demand being the reinstatement of the fuel subsidy.
In response to the protests, President Tinubu addressed the nation in a broadcast on Sunday, acknowledging the pain caused by the subsidy removal but defending it as a necessary measure. He argued that the subsidy was a significant burden on the country’s economic progress and development.
The impact of these economic changes is reflected in the sharp rise in core inflation, which surged to unprecedented levels of 34.19 percent and 40.87 percent in June 2024, according to data from the National Bureau of Statistics.
High street fashion retailer Superdry is closing its Bradford Broadway store today, marking another chapter in the ongoing challenges faced by traditional retail outlets. The store is hosting a significant clearance sale, offering customers substantial discounts as it prepares to shut its doors for good.
This closure is part of a trend affecting the UK’s high streets. In 2024, approximately 13,479 retail stores closed across the country, equating to an average of 37 closures per day—a 28% increase from the previous year. The Centre for Retail Research anticipates that this trend will continue, forecasting around 17,350 retail site closures in 2025.
Several factors contribute to these widespread closures:
- Shift to Online Shopping: Consumers are increasingly favouring online shopping platforms, reducing foot traffic in physical stores.
- Rising Operational Costs: Retailers are grappling with escalating expenses, including higher national insurance contributions and increased minimum wage requirements.
- Economic Pressures: High inflation rates have led to reduced consumer spending, impacting retailers’ revenues.
Other retailers, such as Beales and New Look, are also closing various branches due to financial pressures. Beales, for instance, will close its last remaining store in Poole on May 31, while New Look plans to shut nearly 100 outlets.
The decline in traditional high street shopping has resulted in significant job losses, with nearly 170,000 retail jobs lost in 2024 alone, marking the highest annual loss since 2020. Experts predict that 2025 may bring even worse outcomes for retail jobs and store closures.
Dangote Refinery has reduced its ex-depot price for premium motor spirit (PMS) to N815 per litre. This adjustment follows a drop in fuel landing costs, which recently fell to N774.82 per litre, lower than Dangote’s previous ex-depot price of N825 per litre.
Industry insiders have confirmed the price reduction, although Dangote Refinery has not made any official statement about it.
Chinedu Ukadike, the spokesperson for the Independent Petroleum Marketers Association of Nigeria, acknowledged the change. He explained that speculation about lower prices for imported products is fueling the competition. He added that since Dangote has a large supply of fuel, reducing prices helps to protect its market share.
It’s unclear whether this reduction will affect the pump price at Dangote-affiliated stations like MRS, which currently sells petrol at N860 per litre in Lagos and N880 in Abuja.
In recent months, Dangote Refinery and the Nigerian National Petroleum Company Limited have been locked in a competitive price battle.
Meanwhile, the Petroleum Products Retail Outlet Owners Association recently met with the Minister of State for Petroleum, Heineken Lokpobiri, to push for more stable and competitive fuel prices.
In early 2025, Nigeria’s telecommunications landscape underwent significant changes as major service providers—MTN, Airtel, Glo, and 9mobile—implemented substantial increases in their data tariffs.
These adjustments, some exceeding 200%, were introduced following the Nigerian Communications Commission’s (NCC) approval of a 50% tariff hike, aiming to address escalating operational costs faced by telecom operators.
NCC’s 50% Tariff Increase Approval
In January 2025, the NCC granted permission for a 50% increase in tariffs, responding to the telecom operators’ appeals to mitigate rising expenses and sustain service quality. This decision marked the first tariff adjustment since 2013, reflecting the need to balance operational costs with revenue generation.
MTN Nigeria
MTN Nigeria implemented extensive price adjustments across its data plans, with some popular offerings experiencing increases of up to 200%. Below is a detailed breakdown of the changes:
1. 15GB Digital Bundle Weekly Plan:
- Previous Price: ₦2,000
- New Price: ₦6,000
- Adjustment made: ₦3000 for 7gb
- Percentage Increase: 200%
2. 1.5TB 90-Day Plan:
- Previous Price: ₦150,000
- New Price: ₦240,000
- Percentage Increase: 60%
3. 100GB Monthly Plan:
- Previous Price: ₦20,000
- New Price: ₦25,000 (for 90GB)
- Percentage Increase: 25%
4. 600GB 90-Day Plan:
- Previous Price: ₦75,000
- New Price: ₦120,000 (for 480GB)
- Percentage Increase: 60%
5. 1.8GB Monthly Plan:
- Previous Price: ₦1,000
- New Price: ₦1,500
- Percentage Increase: 50%
6. 20GB Monthly Plan:
- Previous Price: ₦5,500
- New Price: ₦7,500
- Percentage Increase: 36%
7. 25GB Monthly Plan:
- Previous Price: ₦6,500
- New Price: ₦9,750
- Percentage Increase: 50%
8. 10GB Monthly Plan:
- Previous Price: ₦3,500
- New Price: ₦5,250
- Percentage Increase: 50%
9. 5GB Monthly Plan:
- Previous Price: ₦1,500
- New Price: ₦2,250
- Percentage Increase: 50%
10. 1GB Daily Plan:
- Previous Price: ₦350
- New Price: ₦525
- Percentage Increase: 50%
11. 5GB Tuesday Awoof Plan:
- Previous Price: ₦600
- New price: ₦900
- Percentage Increase: 50%
These adjustments and increase has led to consumer dissatisfaction, particularly due to the steep increases in high-capacity data plans.
Airtel Nigeria
Airtel Nigeria also revised its tariffs, affecting data, call, and SMS rates:
1. 23GB Monthly Plan:
- Previous Price: ₦6,000
- New Price: ₦9,000
- Percentage Increase: 50%
2. 10GB Monthly Plan:
- Previous Price: ₦3,000
- New Price: ₦4,500
- Percentage Increase: 50%
These changes prompted concerns among subscribers, especially regarding the affordability of essential data services.
Glo Nigeria
Glo Nigeria adjusted its tariffs in compliance with the NCC’s directive:
1. 24GB Monthly Plan:
- Previous Price: ₦5,000
- New Price: ₦7,500
- Percentage Increase: 50%
2. 10.8GB Monthly Plan:
- Previous Price: ₦2,500
- New Price: ₦3,000
- Percentage Increase: 20%
Glo’s competitive pricing strategy, even after the increase, continued to attract budget-conscious consumers. This has caused many to migrate to this service provider despite the slow network connection.
9mobile
9mobile implemented notable adjustments to its data plans:
1. 22GB Monthly Plan:
- Previous Price: ₦5,000
- New Price: ₦7,500
- Percentage Increase: 50%
MTN Nigeria’s Apology and Acknowledgment of Customer Dissatisfaction
Following the substantial price hikes, MTN Nigeria faced significant backlash from its subscribers. In response, the company issued an apology, acknowledging the abruptness of the increases and admitting to errors in their implementation.
In a statement addressing their “₦2000 for 15GB digital bundle lovers,” MTN expressed: “You dey vex. We know. We know how upsetting it must have been to suddenly wake up to a 200% increase on your favourite digital bundle.”
The company further admitted, “We don cast. We get it and admit it. Let’s just say na mistake.”
This candid acknowledgment aimed to mend the strained relationship with customers, emphasizing their importance to the company. MTN concluded with a plea for forgiveness.
“In this love season, don’t stay angry with us. Please forgive and forget. You matter, die and we will never stop showing you how much.” Despite the apology, MTN did not indicate any plans to reverse or adjust the new pricing structure, as it still remains the same.
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