The aftermath of subsidy removal in Nigeria and the opportunities for Nigerians in this still brand-new administration is thoroughly examined in this article. It has been a few weeks since Nigeria welcomed a new president and in the same breath, witnessed the removal of fuel subsidy. Since the removal of fuel subsidy in Nigeria, the country has experienced mixed economic impacts. While it can help reduce government deficits and free up resources for developmental programs, it has also led to increased fuel prices, decreased disposable income, and inflationary pressure (read more)
With the recent change in Nigeria’s presidency and fuel subsidy removal, it is crucial to assess the economic impacts. On one hand, this removal can help alleviate government budget deficits by eliminating the burden of fuel subsidy, allowing resources to be directed towards other developmental programmes. On the other hand, it may result in reduced disposable income for consumers, affecting their purchasing power and potentially slowing down economic growth. Additionally, the increase in fuel prices and inflationary pressure on transportation, goods, and services cannot be overlooked.
In any significant event, there are always two sides. Nigerians now face a choice between complaining and struggling with social unrest, or seeking ways to generate income and survive the challenging economy. As it concerns us, it is worth noting that the completion of the Oyo-Ogbomoso road by November 2023 (read more) will significantly reduce fuel usage, as the journey time by road will be reduced from 4 hours 35 minutes to 1 hour 20 minutes. This development is expected to spur growth in Ogbomoso, attracting more investors and positioning it as a major trade and commerce hub in the Southwest, following Lagos.
Given the government’s interest in agriculture, investors are likely to diversify their resources from oil into this sector as discussed in the last blog post, where we shared how agriculture is quickly becoming the industry of choice. The funds saved from the removed fuel subsidy can be reallocated to initiatives that support agriculture, thereby mitigating the negative impact of subsidy removal and fostering long-term economic growth and social welfare. This presents an opportune time to invest in farmland, especially in Ogbomoso, known for its fertile soil and central location for trade and commerce. In the coming years, farmland is expected to be highly valued, making it an ideal investment choice.
What is the economic impact on Ogbomoso and individuals who have invested in farmland there?
Firstly, due to Ogbomoso’s growing status as a center of commerce and trade, there is a constant demand for food. Consequently, individuals interested in leasing or purchasing farmland from current investors will be drawn to the area to cultivate food crops. As a result, both the city and the landowners will experience an economic upswing. Additionally, this development generates more employment opportunities for the younger generation, as there will be an increase in the number of warehouses, factories, and government welfare initiatives. These factors contribute to the overall GDP growth of not just Ogbomoso, but also Oyo State and Nigeria as a whole
At Hastom, Nigeria’s leading agricultural estate in Ogbomosho, we offer well-surveyed farmland free from any legal issues (HASTOM FARMLAND FAQs (1).pdf). Acquiring farmland from us not only positions you to benefit from the potential growth but also allows you to become an affiliate marketer, earning income while helping others secure farmland and promoting social stability amidst subsidy removal and its attendant effects. Additionally, the reallocated funds from agriculture can support social welfare initiatives, infrastructure development, education, healthcare, and renewable energy projects, creating a more sustainable and prosperous future.
In conclusion, the aftermath of subsidy removal in Nigeria presents both challenges and opportunities. By exploring avenues such as investing in farmland, diversifying into agriculture, and capitalizing on the reallocation of funds, individuals can navigate this era and secure their financial future. Hastom offers a trusted platform for acquiring farmland in Ogbomosho, allowing you to be part of the region’s growth story. Embrace the opportunities brought forth by the aftermath of subsidy removal and make the most of your retirement plan.
Featured Image Credit: Picserver
