Boluwatife Adedokun
Under the scorching sun in Osogbo, Osun state, Mukila Ololade sat slumped against his idle bike, watching the quiet street where only a handful of people walked by. This wasn’t the life he’d known.
He had dozed off on the bike, hoping for a passenger to wake him, but it was another slow day. “People don’t carry bikes anymore,” Mukila said, his voice a low murmur.
“The fuel hike is affecting us because people are no longer taking bikes,” Mukila explained. “It’s not paying us because trips that used to cost 1,000 naira now go for 500 naira. We have to reduce the fare just to make sure we take something home.”
Pointing to the idle bikes around him, Mukila described the change in their daily routines. “We no longer work as before. As you can see, all of us are just here with our bikes, waiting for passengers who rarely come. Some have even fallen asleep on their bikes. I just woke up myself and decided to come out and try again.”
For Mukila, the solution is simple: “If the cost of fuel comes down, it will benefit both us and the passengers,” he says, hopeful for a return to normal.
Genesis of Fuel subsidy
For Mukila, and other bikemen like him across Nigeria, the daily struggle began anew when Nigeria’s government announced the removal of the long-standing fuel subsidy in May 2023.
The subsidy had been in place for decades, keeping fuel prices lower and somewhat stable for the public. With its removal, the price per liter more than doubled overnight, rising from around 200 Naira to 500 Naira.
Though the government justified the move as a measure to save costs and stabilize the economy, the impact on daily life was swift and brutal.
In the months that followed, Nigeria saw an unprecedented spike in fuel costs. According to the National Bureau of Statistics (NBS), the price of fuel rose from 500 Naira per liter to 617 Naira by July.
The inflation ripple spread through every corner of the economy, hitting transportation, food, and essential goods hardest. For the average Nigerian, the cost of living has never been higher.
The inflation rate surged past 24% in 2023, marking the highest inflation Nigeria has experienced in nearly two decades, as reported by NBS.
In recent weeks, Nigeria witnessed another sharp rise in fuel prices, a direct consequence of the government’s removal of long-standing subsidies on petroleum products. As of mid-October 2024, the price of Premium Motor Spirit (PMS), commonly known as petrol, reached approximately 1,120 Naira per liter across various states, setting new record highs that have exacerbated the cost-of-living crisis for millions of Nigerians.
This price hike marked the third major increase in fuel costs since May 2023, when President Bola Tinubu’s administration announced the end of the fuel subsidy regime during his inauguration.
The Subsidy Removal Decision
Nigeria’s fuel subsidy policy had been in place for several decades, serving as a means to cushion citizens against the volatility of global oil prices.
Through subsidies, the government partially absorbed the cost difference, allowing Nigerians to purchase petrol at significantly lower prices.
However, with the rising cost of maintaining subsidies, especially in an economy heavily reliant on oil revenues, the policy became financially unsustainable.
In 2022, subsidy spending was projected to consume a third of the national budget, a situation many economists saw as unsustainable given Nigeria’s mounting debt and shrinking revenue base.
Upon taking office in May 2023, President Tinubu ended the subsidy, arguing that the funds could be better allocated to infrastructure, healthcare, and education. This move initially pushed petrol prices up from around 190 Naira per liter to over 500 Naira, sparking concerns among citizens and analysts alike over inflation and the cascading effects on transportation, food, and essential goods.
However, the recent increase to 1,120 Naira per liter has sent shockwaves through the Nigerian economy, with significant implications for households, businesses, and public services. The transport sector, particularly vulnerable to fuel price fluctuations, has seen fare hikes, forcing commuters to choose between fewer trips or alternative, less convenient modes of transportation. For businesses, especially those reliant on generators due to the country’s power shortages, operational costs have surged, impacting productivity and consumer prices.
For ordinary Nigerians, this fuel price rise has worsened the cost-of-living crisis, with inflation hitting essentials like food, housing, and transportation. In September 2023, Nigeria’s inflation rate reached an 18-year high of over 24%, and analysts warn that these fuel price hikes could drive it even higher, leading to further strain on citizens’ purchasing power.
Reduced fares, reduced income: Daily struggle to break even
For Mukila Ololade, the impact of the fuel hike is clear. “Now, where we used to charge 1,000 Naira, we’re forced to reduce it to 500 because passengers can’t afford it,” Mukila explained.
The reduced fares are his only chance to draw in customers, but even then, it barely makes a dent in his expenses. “Every naira goes to fuel,” he adds. “By the time we cover expenses, there’s hardly anything left for food.”
Jimoh Rasheed, another rider, shared a similar frustration. “Before, if I bought fuel for 2,000 Naira, I could make 7,000 in a day, enough to bring home for my wife and children,” he recalled.
Now, that same 2,000 barely lasts, and his earnings have dwindled drastically. “My wife and I are managing, but it’s hard. This hardship is putting stress on families; some couples are even splitting because of it.”
With essentials like food and school fees on the rise, Rasheed’s family has had to cut back on almost everything. “I know families who’ve had to choose between feeding themselves or paying rent,” he says, pointing out that the high cost of fuel is affecting more than just bikemen—it’s destabilizing entire households.
Empty Roads as Riders Lose Customers to Cost-Cutting Choices
The fuel price hike has also driven away many customers who now choose to walk instead of paying for bike rides. “People are using their legs,” said Sharafedeen Ayanfe, a biker from Ede.
“They trek halfway, maybe taking a ride only if they’re too tired.” Ayanfe explained that, previously, a fuel purchase of 2,000 Naira could power his bike all day; now, it barely lasts an hour. “The difference is night and day,” he said. “Now I bring home maybe half of what I did before, and it doesn’t go far.”
This shift in passenger habits has further cut into the bikemen’s incomes, leaving riders like Ayanfe with a tough decision each day—whether to wait in hopes of finding a few customers or to head home empty-handed. “Where I used to bring 2,500 Naira home, enough to feed my family with something left over, now even 10,000 Naira isn’t enough,” he admits. For Ayanfe, as with so many others, the rising costs have forced heartbreaking adjustments, particularly when it comes to feeding his children.
“Limited income, endless expenses,” he reflects, summing up the plight facing bikemen across the state.
