FOOD SECURITY: EXTENSION POLICIES AND PRACTICES FOR THE POST FUEL SUBSIDY REMOVAL IN NIGERIA
A Keynote Paper Presented by
Her Excellency
PROFESSOR BLESSING K. FARAUTA
Deputy Governor, Adamawa State, Nigeria
7th April 2025
30th Annual Conference of the Agricultural Extension Society of Nigeria (AESON), held at Taraba State University, Jalingo
Good morning, distinguished guests, esteemed colleagues, and fellow stakeholders. It is with great honour and a sense of responsibility that I stand before you today to discuss a matter of paramount importance to the future of our nation: food security in the context of extension policies and practices, as we navigate the challenges and opportunities presented by the removal of fuel subsidy in Nigeria. The removal of fuel subsidy while essential for national development, presents challenges—particularly for those who work diligently to feed our nation: our farmers.
1.0 INTRODUCTION
1.1 Overview of fuel subsidy removal in Nigeria: A pivotal moment in history
The removal of fuel subsidy in Nigeria has been a significant and controversial policy shift. Historically, the Nigerian government subsidised fuel prices to make them more affordable for citizens, especially lower-income groups. However, this policy became financially unsustainable due to the high costs and issues like corruption and inefficiency.
The concept of fuel subsidy has been a topic of significant discussion and debate in Nigeria, especially since 29th May 2023, when President Bola Tinubu, in his inaugural speech, announced that “Fuel Subsidy is gone” (The Punch, 2023). After this announcement, people expectedly expressed their views. Some affirmed their support for the President’s decision, while others stated their concerns over increased living costs and demanded accountability from the government. However, the removal of fuel subsidy marked the end of decades-long government intervention in fuel pricing. This decision was motivated by the necessity to stabilise the economy, reduce fiscal deficits, and reallocate funds to essential sectors like infrastructure, education, and healthcare. The removal of subsidies resulted in a substantial rise in fuel prices, which notably affected the cost of living for Nigerians.
The cost of fuel subsidy on government has many factors such as opportunity cost on development spending which sees that fuel subsidy payment diverts part of the resource for developmental purposes towards consumption (IMF, 2020). Hence, the resources that should have gone into infrastructure, education, health, and security with positive externalities go into consumption. Also, it leads to strain on government’s fiscal space that the ever-growing fuel subsidy bills continue to hit deep into government resources (CBN, 2022). With revenue shortage, fuel subsidy payment means the government will need to borrow to invest in other aspects of governance. Besides, the fact that neighbouring economies operate at market-clearing prices encourages the smuggling of subsidized products out of the country. Therefore, fuel subsidy causes scarcity of fuel in the market and discourages investors in the sector as they cannot guarantee their operations efficiency, profitability, and competitiveness due to market distortions which lead to disincentives investment (OPEC, 2022).
While the government argued that the move was necessary for long-term economic stability, it faced widespread protests and criticism due to the immediate hardships it caused, particularly for vulnerable populations. The policy also had ripple effects on neighbouring countries like Niger, which relied on subsidised fuel from Nigeria. Despite the challenges, the government remains resolute, emphasising the importance of this reform for Nigeria’s future.
The removal of the fuel subsidy marks a transformative period for Nigeria and has sent shockwaves throughout the economy, and the agricultural sector is no exception. While this policy shift is designed to reallocate resources toward critical sectors like education, infrastructure, and health, it also has far-reaching implications for our agricultural landscape. Energy costs, transportation, and the prices of inputs such as fertilisers have escalated, putting pressure on food production systems. However, within this challenge lies an opportunity—to reshape our agricultural extension policies and practices to secure the livelihoods of millions and ensure that no Nigerian goes to bed hungry. For a country known for its vast arable land, diverse agroecological zones, and hardworking farmers, the stakes are high. Yet, it is in moments of great challenge that we find the greatest opportunity for transformation. Agriculture is not just a contributor to our economy; it is the backbone of our livelihoods, our culture, and our collective survival. With rising costs of farm inputs, energy, and transportation, there is an urgent need to reassess and strengthen our agricultural systems.
Therefore, today, I wish to emphasise the critical role of agricultural extension policies and pr actices in driving food security during this transition. Together, we must view the removal of the fuel subsidy not only as a challenge but as an opportunity to refocus, innovate, and empower.