Toheeb Babalola
As early as 7:00am WAT, every Sunday, Modupe Olorunkosebi together with her grandchildren move to a church within their vicinity at Mokola roundabout in Ibadan North Local Government Area, Southwest Nigeria, to attend Sunday service. Whenever the Sunday service ends by 11:00am, Modupe orders the children to go and rest at home with an empty stomach until she comes back from the street.
After seeing her grandchildren through to their way home, the 66yr old widow will enter a corner to change her church attire to an old gown and move towards the Heritage mall, Cocoa House, Dugbe Ibadan, to beg for alms.
Responding to on-spot-reporter, on Sunday, 13th August, 2023 beside the stairway of the Heritage Mall, Modupe revealed that she was a small-scale shop owner selling provisions within her community before the dwindling economy totally devoured her provisions trade.
Effect of the fuel subsidy removal on Small scale business
Nigeria’s economy rests on crude oil. This means that if anything happens in the process of the crude oil including its refining, it would negatively impact all sectors of the economy. We can logically say, “the higher the cost of fuel, the more recession citizens will experience”.
Since the 1970s, fuel subsidies have been in place and attempts to lower the fuel cost by providing direct financial support to oil firms, thereby lowering the fuel price for Nigerians. However, the removal of the subsidy which amounts 11.4trillion Naira within 2015-2023 under immediate past administration led by Major General (Rtd.), Muhammad Buhari brought nothing but national debts, and no tangible development for justification.
Confirming the hardship brought by subsidy removal in Buhari’s regime, Modupe stated, “I started coming here to beg for alms two years ago during the second term of the Muhammad Buhari. Ever since my business has collapsed”
Tinubu’s Subsidy removal policy
Just like his predecessor, the newly elected 16th President, Bola Ahmed Tinubu, announced the removal of fuel subsidy during his inaugural speech. He said, “Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions”.
In less than 24hours after the subsidy announcement, the price of Premium Motor Spirit, PMS, jumped from 260Naira to 650Naira per litre. Consequently, inflation sets in, Nigerians started protesting through the Nigerian Labour Congress, NLC, and Trade Union Congress, TUC, demanding palliatives from the Federal Government.
This economy downfall has made many private business organizations to downsize their workforce which indirectly inflates unemployment rate in the country. Workers who are not affected by layoffs are also harmed by deductions from their wages. Modupe noted that her children cannot take responsibilities or cater for the family due to the economic situation.
“Some of my children had died but left behind grandchildren. The ones are now out of employment because of this unstable economy and they cannot provide the family. And for me to feed those grandchildren, I had to go out there and beg for alms”, Modupe revealed
Modupe Olorunkosebi. PC Toheeb babalola
I cannot leave street-begging since my trade is yet to be rejuvenated – Modupe
Couple of weeks ago, Federal Government approved 100,000 bags of rice and other food items which amount to 5billion naira for each State as palliative. However, these durable goods are not sustainable and cannot curb the hardship emanated from the fuel subsidy removal. In her words, Modupe disclosed that, “Losing a business venture to economic hardship is an everlasting sadness. Because the memory of loans, personal funds and stress expended on such trade would never be erased. Will two congos of rice or a bottle of vegetables bring my shop back to life?
“All these cups of rice the government called palliative cannot last more than a week. There is no way I can put food on the table without going out there to beg. Until I get my business back before stop street-begging”
Prevention of Economic Crisis
Strengthening purchasing power is one of the ways forward, and this can be done by the Federal Government to spend massively so that the economic cycle does not stall and the business world is moved to be able to progress in investment.
Government should channel assistance to small and medium enterprises, SMEs, in the form of productive SMEs and low-interest loans, it is hoped that the wheels of the economy can run well.
In addition, making effective policies will go a long way to save in bankruptcy.
