Fuel Subsidy Removal Exposes Nigeria’s Class Divide

Every time fuel subsidy resurfaces in Nigeria, I feel personally insulted by the notion that its removal was simply “necessary.” What sounds like sound economics often masks an apology for government dysfunction. Those defending the cut usually come from upper-middle and elite circles insulated from its impact. But in our economy, fuel is not just a consumption good—it powers generators, cold chains, SMEs and farms across the informal sector. Removing subsidies without state capacity to target support forces costs onto the poorest workers and informal businesses. The result? Job losses, higher prices and stalled growth even as deficit figures improve. A truly developmental state would invest in infrastructure, formalize the economy and reform subsidy delivery before cutting fuel support. Most importantly, it would be honest about who bears the pain and why.

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