By Wale Aderibigbe
As Nigeria charts a new course under President Bola Tinubu’s administration, three major policies stand out as the foundation for transformative change: Fuel Subsidy Removal, Tax Reform, and the nationalist agenda known as Nigeria First. Each policy addresses fundamental challenges in governance, economy, and social cohesion, aiming to reposition Nigeria for sustainable growth and inclusive development.
Fuel Subsidy Removal
For decades, Nigeria has subsidized fuel to keep petrol and diesel prices artificially low, seeking to ease the financial burden on citizens. While well-intentioned, this policy has become a costly drain on the nation’s finances. Billions of naira are spent annually on subsidies, funds that could otherwise be invested in critical sectors such as infrastructure, education, and healthcare.
Moreover, subsidy programs have often been plagued by inefficiencies, corruption, and distortions in market pricing. By removing these subsidies, the government aligns fuel costs more closely with global market realities, curbing wasteful expenditure and promoting fiscal responsibility.
However, subsidy removal is not without challenges. It inevitably leads to a short-term rise in fuel prices, which trickles down to increased transportation and commodity costs, putting pressure on household budgets. Inflationary risks are real and must be managed with care. The success of this policy depends on the government’s commitment to redirect savings into social safety nets, infrastructure development, and clear communication to maintain public trust and mitigate hardships.
Tax Reform
Nigeria’s tax system has long suffered from a narrow tax base, low compliance, and inefficiencies that limit government revenue. Under President Tinubu, tax reform is a priority to broaden the tax net, enhance collection mechanisms, and build a fairer system where every individual and corporation pays their rightful share.
The current tax-to-GDP ratio in Nigeria lags behind comparable economies, constraining public finances and over-relying on volatile oil revenues. Effective tax reform will diversify revenue streams and create a more resilient fiscal foundation.
Key objectives include digitalizing tax administration to reduce leakages and corruption, strengthening agencies like the Federal Inland Revenue Service (FIRS), incentivizing voluntary compliance, and formalizing informal sectors of the economy. Through these measures, the government hopes to boost public service funding, promote economic equity, and foster a culture of tax responsibility.
Nigeria First
“Nigeria First” is more than a slogan; it is a nationalist policy framework that places Nigerian interests at the center of governance, economic planning, and diplomacy. It calls for a united effort to prioritize local industries, products, and human capital.
The policy encourages the production and consumption of Made-in-Nigeria goods, ensuring that Nigerian workers and businesses benefit from economic opportunities. It also seeks to strengthen national security and social cohesion by fostering transparency, accountability, and institutions that serve the people’s welfare effectively.
The essence of Nigeria First is to reduce dependence on foreign goods and external support, leveraging the nation’s abundant resources and talented workforce to drive sustainable development. It inspires patriotism and collective responsibility, reminding citizens and leaders alike that the future of Nigeria depends on putting Nigerians first.
Conclusion
The trio of Fuel Subsidy Removal, Tax Reform, and Nigeria First represents a bold and necessary roadmap for Nigeria’s progress. While the journey will have challenges, these policies have the potential to create a more self-reliant, equitable, and prosperous nation. Success will require commitment from government, private sector, and citizens alike, united by a vision to build a Nigeria that works for all.