Global Courant
Currently, many people living in Nigeria can relate to the hit, “it must have been love by Roxette.” The lyrics of the song, It must have been love, but it’s over now. It was all I wanted, now I live without itmatches their sentiments since announcing the elimination of the fuel subsidy last week. Over the years, the government has repeatedly said that the petrol subsidy was unsustainable because of the amount spent. Last year alone, more than N4 trillion was used to subsidize petrol, more than the government spent on education and healthcare combined. But for Nigerians, the abolition of the fuel subsidy is bittersweet. And as Nigerians say bye to fuel subsidies, their new reality has sparked lively discussions and debates. Critics of the abolition of the fuel subsidy argue that it will further weaken Nigerians’ purchasing power and impoverish more citizens in a country where nearly half the population is poor. The core of these conversations is focused reducing the impact of the abolition of the fuel subsidy and finding alternatives that prioritize people’s well-being. Whether it’s transportation, the rising cost of living or the purchasing power of Nigerians, these conversations cut across sectors.
Embrace renewable energy
Nigeria belongs to Africa largest oil producer and the eleventh largest oil-producing country in the world. Oil accounts for approx 60 percent of government revenue and more than 90 percent of foreign currency revenue. So it makes sense that they rely heavily on fossil fuels such as petrol and diesel for electricity generation. However, the world is changing. And half of the two drivers of this change is climate change (the other is technology). In the last few years, conversations about sustainable energy have stressed the need to diversify the energy mix and reduce dependence on these fossil fuels.
On several occasions, Nigeria has attempted to diversify its energy mix by investing in renewable energy projects such as solar, wind and hydro. For example, the Nigerian government launched the Solar Power Naija Program in 2020. The plan is to provide energy access to 5 million households, or 25 million Nigerians in rural and deprived urban areas. Private individuals are also increasingly installing solar panels in their homes. Last year Aljazeera reported that Nigeria’s solar companies are seeing a surge in demand for mini-grids and equipment as a business. Nigeria’s installed PVs per capita quantity to only about 1 watt compared to an average of 8 watts in comparable emerging countries. At current deployment rates, Nigeria’s PV per capita could reach 5–8 GW by 2030. It appears that Nigeria will have to review its commitment to the development and application of renewable energy sources.
Oando Clean Energy Limited (OCEL), the renewable energy subsidiary of Oando, in partnership with the Lagos Metropolitan Area Transport Authority (LAMATA), launched its public transport electric buses in May 2023.
Starting up with electric vehicles (EVs)
Like other climate change efforts, the global shift to electric mobility has gained momentum in recent years, with countries around the world promoting EV adoption. Nigeria is not left out. In 2020, Lagos, Nigeria’s largest city, was introduced an electric car sharing program, Making EVs available for rental. Sokoto also became the first state in Nigeria to launch a solar electric car charging station. In addition, Nigeria also has several proposals for EV manufacturing and assembly plants in the country. But like many projects in Nigeria, these have yet to be made significant progress. For example, the Lagos state government is yet to unveil electricity charging points. In addition to charging points, the state of the auto sector has been linked to the Nigerian government’s inability to pass a law, one that aims to support the policy.
There is also concern that most of the Nigerian population is poor and cannot afford electric vehicles. Perhaps Nigerians will have a better chance if the government invests in electric cars and builds a sustainable transportation ecosystem. This can be done through incentives and infrastructure development. For example, governments can provide incentives, such as tax breaks or subsidies for the purchase of electric vehicles, and invest in charging infrastructure to facilitate their widespread use. This not only reduces the country’s dependence on fossil fuels, but also promotes local production and promotes technological advancement.
Keep up with fair wages
It’s almost impossible to talk about the cost of living and not let it trickle through the minimum wage discussions. Nigeria has always faced discussions and debates about the adequacy of the minimum wage for the cost of living. In 2019, the President of Nigeria signed an increase in the minimum wage, from 18,000 naira to 30,000 naira per month. This move came after years of talks, protests and negotiations by trade unions and civil society groups advocating better pay for workers in Nigeria.
Yet the minimum wage is struggling to keep up with the ever-rising cost of living in Nigeria. That is why the Nigerian Labor Congress (NLC) and Trade Union Congress (TUC) proposed a nationwide strike shortly after the announcement of the abolition of the fuel subsidy. Although the body has suspended the strike, after continued talks between the body and the government, proves the new reality why re-evaluation of the minimum wage has become crucial to easing financial pressure on vulnerable populations. Moreso, it will help maintain social stability and a decent standard of living. It is about creating a transparent wage policy that takes into account the economic realities and the well-being of employees.
Working remotely again?
When the pandemic hit in 2020, many organizations in Nigeria were forced to adopt remote work policies to ensure business continuity and prioritize employee safety. Once the pandemic passed, it seemed like the buzz around remote working died down as quickly as it had started, especially within conventional workspaces. A few organizations opted for the hybrid work environment and even fewer remained completely remote.
Again, as the elimination of fuel subsidies puts pressure on transportation costs, talks are abuzz about the potential of remote working arrangements to reduce the need for commuting and ease the burden of higher fuel costs. Some private companies have already adopted this. Now it appears that state governments are also jumping on this bandwagon. two states, Kwara And Edohave agreed to a temporary reduction of working days to three days a week for state officials.
The idea of remote working seems thoughtful and simple to imagine; work from the comfort of your own home or have flexible work arrangements to avoid those long commutes and save on transportation costs. But for this to happen, Nigerians need reliable internet connectivity, electricity and supportive policies. All things the country is currently struggling with.
