By Muhammad Mamman
Nigeria’s poverty rate has surged to 63 percent following the removal of fuel subsidies, according to a new report highlighting the deepening economic hardship faced by millions across the country.
The report indicates that the policy shift — introduced as part of broader economic reforms — has significantly increased the cost of living, pushing more households below the poverty line. With fuel prices rising sharply after the subsidy was scrapped, transportation, food, and basic commodities have become increasingly unaffordable for many Nigerians.
Analysts say the ripple effects of the subsidy removal have been felt across nearly every sector of the economy, as businesses pass higher operating costs on to consumers. This has intensified inflationary pressures and reduced the purchasing power of ordinary citizens.
Economic experts warn that without strong social safety nets and targeted relief measures, the number of Nigerians living in poverty could continue to climb in the coming months.
The federal government has defended the decision to remove the subsidy, arguing that the policy had become financially unsustainable and largely benefited fuel importers and smugglers rather than the general population.
Officials say savings from the subsidy removal will be redirected toward infrastructure development, social programmes, and economic reforms aimed at stabilising the country’s finances.
However, critics argue that the immediate impact of the policy has been severe, with many Nigerians struggling to cope with rising living costs amid stagnant wages and limited economic opportunities.
