Opinion: Mitigating the impact of global energy volatility on Nigerian mobility

While domestic pressures on prices exist, the recent surge in fuel prices is primarily a result of the Middle East conflict. As a global market participant, Nigeria is absorbing the shockwaves of geopolitical instability, which has directly translated into the skyrocketing transportation costs we see today.

2. A Shift from “Blanket” to “Targeted” Support
Reintroducing a blanket fuel subsidy is not a viable option; the history of abuse is too significant, and I do not anticipate this administration taking that route. Instead, I propose a Targeted Transport Intervention (TTI):

Register all legitimate public transport entities into a national database. This must include haulage companies, passenger buses, taxis, shared-ride platforms (e.g., Uber), passenger tricycles, motorcycles, and passenger boats in rural areas.

Issue fuel subsidy cards to these verified operators only, allowing for remote monitoring and controlled consumption.

As for source of funding, government should leverage the current “windfall” from high global crude prices to fund this specific relief, ensuring the surplus directly shields the commuting public.

3. Economic Safeguards
By subsidizing the operator rather than the commodity, we create a firewall against inflation. This targeted approach prevents a total collapse of purchasing power, stabilizes food prices, and protects the daily lifestyle of the average Nigerian from an otherwise inevitable economic downward spiral.

Written by Luqman Mamudu