As of the time of writing this report, Nigerians are paying high prices for petroleum amid scarcity and long queues.

The essence of subsidy, which is to make petroleum affordable for Nigerians is moot in the country at the moment.

Attempts to remove subsidy by the Nigerian government over issues around sustainability and financial requirements, have failed and again the country is stuck with a  N3 trillion bill for subsidy in 2022, a bill the country can scarcely afford.

Bodies like the  Nigerian Labour Congress and other stakeholders have argued that increased price of petroleum occasioned by the removal of subsidy would affect many Nigerians who rely on this product daily. However, even with a subsidy regime, the current scarcity has seen Nigerians paying far more for petroleum than it would likely have cost without subsidy. 

What could this year’s subsidy bill of N3 trillion  buy if it would be invested in other areas that could potentially offset the discomfort of a no subsidy regime?

Here is a list of five such investment areas:

N3.8 billion for Each Local Government in Nigeria

Issues of funding or the lack of it have been at the forefront of discussions on the viability of local governments in Nigeria and their inability to carry out statutory responsibilities.

The N3 trillion  subsidy bill for 2022 could be redirected to local governments. For the 774 local governments in Nigeria, that is  a sum of  N3.8 billion each. This money can be used for development projects at local government level focused on problem areas like education, to provide educational facilities fit for training children in a digitally advanced world. Healthcare projects could revitalise near dead primary healthcare facilities in local governments.

N32.9 billion for Each University in Nigeria

Thethree trillion naira could be committed to the development of federal and state universities in Nigeria. Shared equally, it would mean each of Nigeria’s 170 universities would get N30.9 million each.

As of the time of this report, the Academic Staff Union of Universities have embarked on yet another strike action and better funding for universities is one of their agitations. 

The government has over time complained of the paucity of funds to meet the demands of lecturers, especially for the revitalization of universities. Well, repurposing subsidy funds is one way to begin to resolve that challenge.

15,000 Hospitals at N200 million Each

In the 2022 budget, the Nigerian government budgeted N200 million to build one hospital.

With N3 trillion and at the cost of N200 million for one, the country can build 15,000 hospitals to bridge a much discussed healthcare gap.

At the height of the pandemic, for instance, Nigeria lacked sufficient hospitals or hospital facilities to cater to its needs. An additional 15,000 hospitals will not only increase the number of hospitals in the country but also help to bridge the access to healthcare for Nigerians.

Construction of 70,500 units of “4 Blocks of Two Classrooms” Each

Details in the 2022 budget show that four blocks of two classrooms will be built for N42.5 million. Following the same calcultation, with N3 trillion, seventy thousand and five hundred schools can be built across the country.

This could potentially reduce Nigeria’s out-of-school children burden, provide educational facilities in places where students receive lessons under the “orange” tree and the country may finally begin to respond to the challenge of access to education.

Free Healthcare for Fifty Million Families 

TheN3 trillion subsidy bill could help fifty million Nigerian families, out of the 83 million living below the poverty line, access free healthcare. A Dataphyte report had earlier noted that it costs a family of four N60,000 per year to be a part of the National Health Insurance Scheme. Several reports have identified economic hardship as the reason why Nigerians are not signed on to the NHIS. An NOI poll had earlier noted that eight in ten adult Nigerians do not have access to health insurance. A Dataphyte report had also noted that only 3% of Nigerians are covered by the National Health Insurance scheme, and most of that figure is made up of those covered by employees health insurance schemes.

The subsidy bill can purchase health insurance for the poor in hard to reach places to improve Nigeria’s overall access to healthcare.

If the government chooses to repurpose the subsidy bill of N3 trillion naira to any of these five areas or even mix and match its development investments across these five highlighted areas, the country may begin to move the needle on the achievement of some of the Sustainable Development Goals. Specifically Goal 3 and 5 which is health and well being for all including universal health coverage and inclusive and equitable quality education and promotion of lifelong learning opportunities for all which includes universal access to quality higher education.