Nigeria’s Breaking Point: How Fuel Hikes, Debt, and Failed Governance Deepen a Nation’s Hardship

By SpringNewsNG Investigations Desk, September 16,2025

Part One: Fuel Hikes and the Pain of Daily Survival

When President Bola Tinubu removed the petrol subsidy in May 2023, the government promised it would free up billions of naira for development projects and social welfare. Instead, the policy triggered a sharp rise in fuel costs — with petrol moving from ₦185 per litre to over ₦700 in 2024, and further hikes in 2025.

Transport fares have doubled, food prices have tripled, and many families now cook less frequently due to unaffordable cooking gas. A recent survey by the National Bureau of Statistics revealed that over 65% of households spend more than half their income on food and transport.

For the ordinary Nigerian, subsidy removal has been nothing but a daily economic war.

Part Two: Tax Burdens and the Squeezing of Businesses

In response to falling oil revenue, the Federal Government introduced multiple tax reforms: VAT hikes, levies on imports, and even new charges on digital transactions.

But instead of boosting growth, these taxes are strangling small and medium enterprises (SMEs), the lifeblood of Nigeria’s economy. Many traders in Lagos and Kano say they are forced to close shops as customers can no longer afford basic goods.

“The government keeps asking us to pay more,” lamented Chinedu, a shoe trader in Aba. “But where are the roads? Where is the electricity? Nothing works.”

Part Three: Borrowing Nigeria Into a Debt Trap

Nigeria’s debt has soared to historic levels, with over $110 billion owed to multilateral lenders like the World Bank, IMF, and bilateral creditors such as China. Alarmingly, debt servicing now gulps more than 60% of government revenue, leaving little room for investment in education, healthcare, or infrastructure.

Economists warn that Nigeria risks a debt crisis if borrowing continues without accountability. Many citizens see loans as cash cows for politicians rather than tools for national progress.

Part Four: Collapse of Public Education and Healthcare

Nigeria’s public education system is in freefall. Earlier this year, public school teachers in Abuja embarked on a six-month strike over non-payment of the new minimum wage. Across states, classrooms lack chairs, textbooks, and trained teachers.

This collapse has pushed parents toward private schools, where fees rise every new term. Yet many of these schools prioritize profit over quality, demanding new textbooks each session and overbilling parents without delivering better standards.

Healthcare is no different. Doctors frequently strike over poor pay, hospitals lack drugs, and patients are turned away unless they pay upfront. Nigeria spends billions importing medical equipment, yet ordinary citizens die of treatable illnesses.

Part Five: Political Failures and Corruption at the Top

President Tinubu came into office promising economic renewal, but critics say his administration has worsened hardship. Inflation remains stubbornly above 25%, unemployment is high, and the naira — despite multiple reforms — struggles against the dollar.

Meanwhile, lawmakers in the National Assembly approve billions for luxury SUVs and foreign trips while rejecting bills that could improve healthcare or education.

Each political cycle, Nigeria changes presidents, yet policies rarely continue. Reforms start but collapse halfway due to corruption, lack of political will, or outright policy reversals. This endless cycle has left Nigeria stagnant while other African countries like Kenya and Rwanda move forward.

Part Six: Voices From the People

In Lagos, a commuter, Funke Adeyemi, summed it up:

“Every day I wake up thinking how I will pay transport, school fees, and food. Government talks about reforms, but all we see is suffering.”

In Kano, Musa Ibrahim, a factory worker, said:

“They borrow money every year. But our salaries don’t grow, and our factories don’t get power. Who is benefiting from all these loans?”

Part Seven: The Road Ahead — Can Nigeria Recover?

Experts say Nigeria still has a chance to reverse its decline. Key steps include:

• Transparent debt use — loans must be tied to visible projects.
• Investment in education & health — without human capital, no economy can grow.
• True political accountability — corruption cases must not be swept under the carpet.
• Stable policies — reforms must survive beyond election cycles.
• Diversification — reduce dependence on oil, empower agriculture, tech, and manufacturing.

Nigeria’s future hangs in the balance. Will leaders choose reform, accountability, and vision—or continue down the path of waste and failure? For now, citizens remain trapped in hardship, waiting for real change.