It is true. The federal government of Nigeria has finally admitted paying fuel subsidy. So alas! Subsidy was not ‘gone’ as FG has confirmed N5.4tr spent on petrol in very recent times.
A draft copy report of the Accelerated Stabilization and Advancement Plan (ASAP) presented to President Tinubu by the finance minister, Wale Edun, on Tuesday, showed that the estimated expenditure on fuel subsidy for 2024 is N5.4 trillion, a sum of N1.8 trillion more than the amount spent in 2023.
The ASAP was designed to address key challenges affecting the reform initiatives and stimulate development in various sectors of the economy.
“At current rates, expenditure on fuel subsidy is projected to reach ₦5.4 trillion by the end of 2024. This compares unfavourably with ₦3.6 trillion in 2023 and ₦2.0 trillion in 2022,” a draft copy of the ASAP presented by Edun said.
Oh well, CSR Reporters recalls that the removal of the fuel subsidy by President Bola Tinubu immediately he assumed office had sparked and still eliciting widespread debate and concern across Nigeria. This policy shift, aimed at reducing government expenditure and redirecting funds to critical sectors, has had profound economic and social implications. The move, while intended to stabilize the economy, has led to increased fuel prices, higher transportation costs, and a subsequent rise in the cost of living for many Nigerians.
But it is not REALLY about subsidy today. It is about what you and I as well as the corporate citizens can do too. This challenging situation also presents a unique opportunity for businesses to step up and demonstrate their commitment to Corporate Social Responsibility (CSR). By engaging in targeted CSR initiatives, companies can help mitigate the impact of this policy change on vulnerable communities, thereby fostering goodwill and enhancing their corporate reputation.
One of the immediate effects of the fuel subsidy removal is the increase in transportation costs. Commuters, especially those in lower-income brackets, are feeling the pinch as their daily expenses rise. Businesses can address this issue by offering transportation subsidies to their employees. This not only alleviates the financial burden on workers but also boosts morale and productivity.
A representative (name withheld) from the Nigeria Labour Congress (NLC) remarked, “The removal of the fuel subsidy has hit workers hard. Employers who provide transportation support will not only retain their workforce but also enhance loyalty and commitment.” Such initiatives demonstrate a company’s dedication to employee welfare and can serve as a model for other organizations.
Beyond supporting employees, companies can extend their CSR efforts to the broader community. Investing in community projects that reduce the overall cost of living can have a significant impact. For instance, businesses can sponsor the development of local markets, healthcare facilities, and educational institutions. These projects improve access to essential services and create a more resilient community.
Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, highlighted the importance of community-focused CSR: “In times of economic adjustment, the private sector has a critical role in supporting social infrastructure. Investment in community projects not only aids immediate needs but also fosters long-term sustainable growth.”
The increase in fuel costs also underscores the need for alternative energy sources. Companies can leverage this moment to invest in renewable energy projects, both within their operations and in the communities they serve. Providing solar panels to local schools or setting up mini-grid systems in rural areas can reduce dependency on fossil fuels and lower energy costs for households.
Environmental activist Nnimmo Bassey once noted, “Transitioning to renewable energy is not just an environmental imperative but an economic one. Businesses that champion this cause through their CSR programs will be at the forefront of creating a sustainable future.”
Educational initiatives are another crucial area where businesses can make a difference. Offering programs that teach financial literacy and efficient energy use can empower individuals to better manage their finances in the face of rising costs. Workshops on budgeting, energy-saving techniques, and small-scale entrepreneurship can provide the skills needed to navigate these challenging times.
Though, the removal of the fuel subsidy in Nigeria presents significant challenges, it also offers businesses an opportunity to lead through CSR. By providing transportation subsidies, investing in community projects, supporting renewable energy, and offering educational programs, companies can play a pivotal role in mitigating the impact of this policy change. These efforts not only support vulnerable communities but also strengthen the social fabric and contribute to long-term economic stability.
The spirit is that businesses’ commitment to CSR will be crucial in building a more equitable and sustainable future for all Nigerians. By turning challenges as the fuel subsidy removal into opportunities for positive change, companies can demonstrate that they are not just profit-driven entities but integral parts of the communities they serve.
