Nigerian economy relies heavily on small businesses, as they play an important role in providing jobs and income for millions of individuals. Unfortunately, these businesses already face diverse barriers such as multiple taxes, insecurity, and inadequate infrastructure. The removal of fuel subsidies further increases the burdens they face, placing additional stress on their already challenging operations.
The recent removal of fuel subsidies is expected to be felt in diverse sectors, including small businesses, especially those that depend heavily on transportation and fuel usage, as they will encounter operational expenses.
Businesses across Nigeria have been hit hard by this removal of fuel subsidies as declared by President Bola Ahmed Tinubu during his inaugural speech on Monday, May 29, 2003, in Abuja. The declaration by the President has sent many Nigerians running helter-skelter as fuel stations immediately raised pump prices of petrol too as much as N600 per liter as opposed to N195 per liter.
For many individuals, this subsidy is their primary advantage derived from the federal government. The disbursal of subsidy payments has consistently encountered controversies due to concerns regarding corruption and a lack of financial transparency.