Feature/OPED
Subsidy Removal: Poor Approach Worsening Shocks in Nigeria, a Comparative Study of Nigeria and India
By Peace Otonihu
The removal of fuel subsidies has been a recurring policy issue for many countries, including Nigeria and India. While both nations face similar challenges in the petroleum sector, their approaches to fuel subsidy reforms differ significantly.
In a newsletter published by Outlook Planet and updated in November 2024, India has since 2010 had a “fossil fuel subsidy policy” which has undergone several reforms since then. However, in Nigeria, the subsidy was removed through the president’s inaugural speech where he announced that “Subsidy is Gone!”.
This announcement since May 2023 has led to a surge in the price of petrol nationwide, an increase in the cost of goods and services as well as other ripple effects on the economy being a resource-dependent economy, without clear policy frameworks to mitigate the impact. In contrast, India’s gradual and research-driven approach to subsidy removal offers lessons in strategic planning and implementation that can be beneficial to consider.
The Background of Fuel Subsidies in Nigeria
A simplified definition of fuel subsidy is the portion of the total fuel price paid for by the government on behalf of its citizens. According to Zinami (2024), Fuel subsidies in Nigeria date back to the 1970s when they were introduced to reduce the burden of fuel costs on citizens.
They became institutionalized in 1977 under the Price Control Act promulgated by the military regime of Olusegun Obasanjo, which regulated prices of essential items, including fuel. Over the decades, subsidies grew to cover a significant portion of government expenditures.
By 2013, Nigeria was listed among the top 20 countries subsidizing fuel consumption, according to the International Energy Agency (IEA) as cited in (Soile & MU, 2015). Despite being one of Africa’s leading oil producers, Nigeria’s inability to maintain functional refineries forced it to rely heavily on imported refined petroleum products. This paradox has made subsidies unsustainable, leading to mounting fiscal pressures and limited development benefits.
In May 2023, President Bola Tinubu’s inaugural speech led to the abrupt removal of fuel subsidy triggered an immediate spike in petrol prices and a ripple effect on goods and services, reflecting Nigeria’s heavy reliance on petroleum for economic activity. A public announcement during an inaugural speech alone does not constitute a comprehensive fuel subsidy reform. India has faced challenges in the petroleum sector similar to those in Nigeria. According to the U.S. Energy Information Administration (“EIA”) 2022, India was the world’s third-largest energy consumer, following China and the United States, as of 2021.
The increasing demand for petroleum products, driven by economic growth, has been compounded by limited domestic production capacity, necessitating fuel imports. Like Nigeria, India has historically seen substantial government involvement in its petroleum sector.
In Nigeria, the most notable reform following the removal of the fuel subsidy is the reallocation of funds previously used for subsidies to sectors such as public infrastructure, education, healthcare, and job creation—areas intended to improve the lives of millions.
It is interesting to note that prior to President Tinubu’s inauguration, the Nigerian government spent approximately ₦400 billion (around $500 million) per month on subsidizing petroleum imports, as noted by Mele Kyari, the CEO of the Nigerian National Petroleum Company Limited (NNPCL), which is authorized to operate in Nigeria’s oil sector.
While redirecting these funds could theoretically represent a significant reform, its effectiveness remains uncertain if the impacts are not clear, and neither do they directly improve the standard of living or the cost of living of Nigerians who have to bear the brunt of subsidy removal.
For example, the 2024 budget allocated ₦1.54 trillion to the education sector, representing only 6.39% of the total budget. There was no notable increase in the education budget when compared with previous years which shows the rechannelling of fuel subsidy funds. This limited visible improvement suggests a lack of proper planning and insufficient research into the specific needs of Nigerians.
However, unlike Nigeria, India’s fuel subsidy reforms were guided by a thorough assessment of cost-benefit analyses and economic impacts, resulting in more effective outcomes for its economy. In India, fuel subsidy reforms were shaped by the work of government-appointed committees conducting extensive research and analysis.
Through these reform initiatives, India significantly reduced its fuel subsidy burden from $24.6 billion in 2013 to just $1.16 billion in 2017—a remarkable 95.28% decrease. This was achieved by deregulating the prices of LPG, DPK, and AGO, illustrating the importance of systematic and research-driven reform strategies.
India’s Fuel Subsidy Reforms: A Gradual and Comprehensive Approach
India has pursued fuel subsidy reforms through a gradual, well-planned, and research-driven process since 2010. Ranking as the third-largest energy consumer in the world after China and the United States, India faced challenges like Nigeria, such as growing demand for petroleum products, heavy government involvement in the energy sector, and limited domestic production capacity necessitating fuel imports.
To address these challenges, India formed multiple expert committees to guide subsidy reform policies:
- Rangarajan Committee Report (2006) – Recommended the use of global market prices to determine the market price for petrol and diesel in the country while limiting subsidized kerosene to families below-poverty-line (“BPL”) and increasing retail prices for LPG.
- Parikh Committee Report (2010): Advocated for complete liberalization of petrol and diesel prices at both the refinery and retail levels, targeting subsidized public distribution system (“PDS”) kerosene for households below-poverty-line with annual price increases tied to agricultural Gross Domestic Product (“GDP”) growth, kerosene sold outside the subsidized public distribution system was set close to the price of diesel, annual quantity limit of six 14.2 kg cylinders on subsidized LPG for each household, and using direct cash transfers or quantity rationing for subsidized LPG.
- Nilekani Task Force Interim Report (2011) – Recommended replacing in-kind fuel and fertilizer subsidies with direct cash transfers using the Unique identification (“UID”) system to reduce fiscal costs by eliminating duplication and ghost beneficiaries.
- Kelkar Committee Report (2012) – Outlined a fiscal consolidation plan involving phased elimination of diesel subsidies over two years, full deregulation by 2014, gradual removal of LPG subsidies over three years, and a one-third reduction in politically sensitive kerosene subsidies within the same timeframe.
These reforms significantly reduced India’s fuel subsidy burden from $24.6 billion in 2013 to just $1.16 billion by 2017—a decrease of over 95%. This achievement was facilitated by deregulating LPG, kerosene, and automotive gas oil prices, adopting direct cash transfers, and targeting subsidies only to vulnerable populations.
Key Lessons for Nigeria from India’s Reforms
India’s approach underscores several key elements that Nigeria could adopt to make subsidy reforms more effective:
- Research-Based Policy Formulation: India’s reforms were guided by thorough research and committee recommendations. By contrast, Nigeria’s abrupt announcement lacked a well-defined policy framework, creating economic shockwaves without providing adequate support mechanisms for affected populations.
- Targeted Support Measures: India implemented targeted subsidies for vulnerable populations and used direct cash transfers to eliminate waste and duplication. In Nigeria, the promise to redirect subsidy savings toward social sectors like education and healthcare has not translated into visible improvements, hence, there is need for better-targeted and transparent support mechanisms.
- Gradual Phasing-Out: The gradual removal of subsidies in India allowed time for the economy to adjust. Nigeria’s sudden subsidy removal led to a surge in fuel prices and widespread economic distress. A phased approach, with well-planned timelines and support measures, could have mitigated the shock.
- Public Consultation and Transparency: India’s reforms involved extensive consultations with stakeholders, enhancing public understanding and acceptance. Nigeria’s unilateral decision-making process limited public buy-in, leading to widespread dissatisfaction.
The Way Forward for Nigeria
For Nigeria, merely redirecting funds from subsidies to infrastructure, education, and healthcare is insufficient if the impact is not measurable or transformative. Effective reform requires clear policies, transparency, and targeted initiatives to ensure that savings translate into tangible benefits. Learning from India, Nigeria should focus on:
- Enhanced transparency and accountability to track and measure the impact of redirected funds.
- Support mechanisms such as direct cash transfers or targeted subsidies to shield vulnerable populations.
- Comprehensive planning and phased implementation to minimize economic shocks.
- Stakeholder consultations to build public support and ensure policy acceptance.
Conclusion
India’s experience with fuel subsidy reforms demonstrates that effective policy changes require a structured approach involving research, planning, public consultation, and targeted social programs. While Nigeria’s recent subsidy removal represents a necessary step toward fiscal stability, the lack of a comprehensive policy framework undermines its potential benefits. In contrast, India’s reforms led to measurable improvements that directly impacted the country’s economy. Through extensive consultation, policy formulation, and research, the Indian government increased access to clean cooking solutions for the rural poor through subsidized LPG. Additionally, direct cash transfers to low-income households helped mitigate the negative effects of subsidy removal, while deregulation allowed oil companies to operate more freely, boosting revenue generation.
This contrast between India’s carefully planned, research-driven reforms and Nigeria’s fewer tangible outcomes highlights the importance of adopting a more structured approach in Nigeria. By doing so, Nigeria can achieve meaningful reforms that balance fiscal responsibility with social equity, ultimately leading to sustainable development and improved well-being for its citizens.
Peace Otonihu is a seasoned investment banking analyst at a top-tier investment bank in Africa. Her expertise lies in policy analysis, financial advisory, project and development finance, focusing on critical sectors such as oil and gas, energy, mining, transportation, and infrastructure. She is a political scientist, policy analyst, and researcher having co-authoured a research publication in a reputable journal while also exploring medium.
She is a certified chartered accountant from the Institute of Chartered Accountants of Nigeria (ICAN), with keen interest in public policy analysis, public-private partnerships, financial advisory and developing infrastructure projects. She was also a Pioneer student of the School of Politics, Policy and Governance, an unconventional school of politics designed to produce a new generation of political leaders.
Feature/OPED
Leveraging Kendrick Lamar Blueprint: How African Artists & Brands Can Maximize Global PR Impact
By Philip Odiakose
If you followed, watched, or were live at the Super Bowl you will agree with me that Kendrick Lamar’s presence at the Super Bowl was not just another high-profile performance; it was a masterclass in media influence, narrative control, and cultural imprinting. His ability to spark conversations, drive digital engagement, and shape public discourse proves the power of deliberate strategic media positioning. Through the lens of media intelligence and PR measurement, we can dissect how African artists and brands can replicate this effect to elevate their global presence. Beyond the entertainment factor, Lamar’s performance provided key lessons in media reach, sentiment shifts, and strategic PR execution—areas that African PR professionals and communicators must internalize to maximize value from major events.
PR measurement data from the event shows a surge in Lamar-related conversations across digital and traditional media. His name dominated print, web, and social trends, appearing in over 1.2 million posts within 24 hours, with a sentiment distribution leaning 67% positive, 21% neutral, and 12% negative. The performance’s impact was amplified by major media outlets covering the event in North America and Europe, as well as select African countries, particularly Nigeria and South Africa. This media traction is a testament to the significance of strategic placements, showing how a single moment can redefine public perception and commercial value. For African artists and brands, the ability to secure a presence at major global events must be seen as more than a mere appearance—it is a PR opportunity that must be measured, optimized, and aligned with long-term communication objectives.
One of the biggest takeaways from Lamar’s Super Bowl presence is the deliberate storytelling approach. He was not just performing; he was communicating a narrative. African artists and brands must be intentional about their messaging when engaging global platforms. Media intelligence specialists can help track how narratives evolve, what themes resonate with audiences, and how to pivot when necessary. Sentiment analysis also plays a crucial role, revealing how different audience segments react and allowing for swift reputation management. Many African brands struggle with post-event PR impact analysis, often focusing solely on momentary buzz without extracting long-term insights from media data.
The concept of “The Kendrick Lamar Effect” speaks to leveraging credibility, cultural influence, and performance metrics to sustain media momentum beyond a single event. African PR professionals must learn from this by ensuring that every global engagement translates into measurable brand equity. This means that artists, influencers, and corporate brands must work with media intelligence teams to quantify their impact, benchmark against industry standards, and ensure PR campaigns are not just reactive but proactive. The challenge many African entities face is the lack of structured measurement frameworks that tie media exposure to business or career objectives. This knowledge gap is where PR measurement must step in to bridge the disconnect.
A vital lesson from Lamar’s Super Bowl impact is the role of multi-channel amplification. The performance itself was one layer, but the true media influence was built through post-event interviews, media engagement, and collaborative content syndication. African PR teams must adopt an omnichannel approach to PR execution, ensuring that media exposure is not short-lived. This requires a strategic mix of traditional media placements, influencer partnerships, and digital storytelling. In PR measurement, it is crucial to analyze which media channels drive the highest engagement and conversion rates, ensuring that communication strategies are data-driven rather than intuition-based.
Looking at case studies from both African and global perspectives, we have seen how the absence of media intelligence has led to missed opportunities. Burna Boy’s Coachella moment, for instance, was a landmark global exposure, yet the post-event PR lacked the necessary follow-through in structured PR measurement. In contrast, brands like Nike and Pepsi have perfected the art of extending media relevance beyond an event moment by employing predictive analytics, sentiment tracking, and engagement mapping. This difference in execution is a key area where African PR professionals must evolve—ensuring that global opportunities do not just end with event visibility but translate into long-term influence and business value.
Beyond just media coverage, there is also the crucial aspect of audience behavior analysis. Lamar’s performance was not just about numbers; it was about how his audience engaged, shared, and created conversations. African PR professionals must shift from vanity metrics to behavioral metrics, focusing on how audience perception changes post-event. Did the media narrative drive new brand partnerships? Was there an uptick in music streaming or product purchases? These are the questions that media intelligence must answer, ensuring that PR efforts are aligned with tangible outcomes.
The overarching lesson for Africa’s PR and communications industry is that major events are PR goldmines—but only if approached with precision, backed by intelligence, and measured effectively. Lamar’s Super Bowl presence serves as a playbook for how media influence can be engineered through strategic PR planning, near real-time sentiment tracking, and multi-platform amplification. African artists and brands have the talent and potential; what remains is the intentional use of media intelligence to ensure that every opportunity is maximized to its fullest potential. PR measurement is not an afterthought—it is the foundation for sustainable media success.
Philip Odiakose is a leader and advocate of PR measurement, evaluation, and media monitoring in Nigeria. He is also the Chief Media Analyst at P+ Measurement Services, a member of AMEC, NIPR, AMEC Lab Initiative, AMCRON and ACIOM
By Princess Akari
If you had told me five years ago, when I was just transitioning into product management, that the role would look like this today, I might not have believed you. But after five years working as a Product Manager (PM), I’ve seen how fast the industry moves, and 2025 is set to bring even bigger changes. Product managers who stay ahead of these changes will build better products and grow their careers. Those who don’t may struggle to keep up.
Here are some key trends to watch and how to adapt.
1. AI, AI, AI!
AI has rapidly gained popularity and continues to grow in influence. For product managers, understanding and using AI tools is now becoming essential, as AI is transforming how we work. Understanding what we can achieve with AI, particularly large language models (LLMs), is essential. Some of the top use cases include content generation, customer support automation (e.g. chatbots), code assistance, research summarization, personalized learning, virtual assistants, data analysis, creative brainstorming, language translation, and much more. Also, as a PM, AI can be introduced into your product to improve user experience and in turn business outcomes.
You might be asking yourself, what can I do to stay in touch with this AI trend? You can start by learning how AI tools can improve your daily workflow, do your own research on the numerous AI tools available and their capabilities. Experiment with AI-driven analytics, user feedback tools, etc. Be very curious and get your hands on as many AI resources as possible.
I recently got an AI micro-certification from Product School. If you’re interested, You can take the course here. Recently as well, I hosted a podcast episode on building AI products, transitioning into AI, and using AI in product development. For Apple podcasts, you can listen here, and for Spotify, you can listen here. These are great resources to give you a good head start.
Other resources; deeplearning.ai, Hugging face, Alpha signal, The Neuron.
2. The definition of “Product Manager” is changing
A few years ago, we had a fairly standard definition of who a PM was and what a PM does. The role of a PM was more standardized, with a clear set of expectations and responsibilities. But as the years have come by, the world has changed and so has the role.
Today, we’re seeing an increased number of specialized PM roles. Some PMs focus on emerging technologies like AI, while others work deeply within data, design, growth, engineering, or operations. Beyond skill-based specializations, some PMs are industry-specialized, such as Fintech PMs, Healthtech PMs, or E-commerce PMs. No two PM roles look the same anymore.
Companies are increasingly hiring specialized PMs to tackle specific challenges, prioritizing specific skill sets and industry experience over conventional backgrounds. Instead of looking for a PM generalist who can adapt to anything, they create detailed role descriptions with targeted skill requirements, tailoring the role to solve specific business challenges. As a result, we’re seeing more unconventional hires stepping into PM positions because they have the exact expertise needed to tackle a company’s unique problems. This highlights an important reality for generalist PMs, specialization is becoming more valuable.
If you’re currently a generalist PM, it’s worth considering how you can narrow your focus, whether by choosing a particular industry or developing expertise in areas like AI, data, growth, design, or technical product management. The demand for specialized skills is growing, and upskilling in these areas will make you more competitive in the job market.
3. PMs are now taking ownership beyond product development
Product managers used to mainly focus on the tech team (engineers, designers, QAs, etc) to build and launch products. But these days (and even in recent years), the role has grown much bigger. PMs are now more involved in the business side of things, leading and guiding business verticals. The role now extends into profit and loss (P&L) considerations and the overall commercial success of a product. They work closely with marketing, sales, finance, and customer support to make sure the product succeeds, not just in how it’s built but also in how it’s launched, sold, and maintained.
PMs are now more involved with how the product will reach customers and profitability. They work closely with marketing and sales teams to ensure a strong product positioning and a seamless launch. It’s no longer just about building a great product, it’s about making sure it reaches the right customers, at the right time, with the right messaging. Ensuring people understand what the product does and why they should use it. This requires PMs to understand their competition, pricing strategies, and customer acquisition channels.
I am well aware that in some companies PMs are now responsible (fully or partially) for pricing and revenue strategies, just as much as the product features. They work with finance and business teams to figure out pricing options and ideas on how that business unit can make a profit. As these companies look for sustainable growth, PMs are also expected to collaborate with customer success teams to improve retention and customer lifetime value.
Conclusion
At the end of the day, product management is constantly changing and so are we as PMs. If there’s one piece of advice I’d give, it’s to stay curious and adaptable. We should be open to continuous learning and new ways of thinking. The more we adapt, learn, and refine our skills, the more valuable we become. There’s always something new to explore, and that’s what makes the role so dynamic.
And if you’re looking for the best place to put your product management skills to practice, join me at Moniepoint – https://www.moniepoint.com/careers
Princess Akari is a product manager at Africa’s fastest-growing financial institution, Moniepoint
By Temiloluwa Olajide
It’s no longer news that piracy is a global enemy, one that has destroyed and continues to destroy the work and livelihoods of countless creatives. From film and music to sports broadcasts and television series, piracy robs rightful owners of their earnings and threatens the sustainability of entire industries.
As a global scourge, it requires a global response and fortunately, powerful partnerships are being forged across the planet and across sectors to protect content creators and the industry they work in. These partnerships involved digital content platforms, law enforcement bodies, cybersecurity firms and tech companies, all working together to ensure the viability of the industries that inform, educate and entertain audiences.
At first glance, piracy might seem like an easy way to access free entertainment, but its consequences run deep, affecting both individuals and society as a whole. On a personal level, streaming a sports event or show from an illegal site can expose users to serious risks, such as malware infections, identity theft, or financial fraud. Hackers can gain access to sensitive information, including bank details, potentially wiping out accounts. The damage caused by such crimes far outweighs the satisfaction of watching a football match for free.
Beyond personal risks, piracy also cripples the creative sector by siphoning revenue away from legitimate rightsholders. When movies, music, and sports events are illegally distributed, producers and creatives do not receive their due earnings. This lack of compensation disrupts the industry, leading to fewer productions, job losses, and weakened investment in new content.
Nigeria has one of the most vibrant entertainment industries in the world, with Nollywood ranking as one of the biggest film industries globally and Afrobeats taking center stage in international music charts. The potential for even greater success is huge, but piracy poses an obstacle.
MultiChoice, a key investor in local content, has spent years bringing high-quality productions to audiences, yet piracy continues to threaten the industry.
Illegal streaming of sports events, reality TV shows, and locally produced series remains a major concern. This is particularly critical as the platform regularly broadcasts live feeds of many of the most popular sporting events on earth—F1, the Olympic Games, Euro, World Cup, and Champions League football, as well as popular local leagues.
Beyond sports, Africa Magic and Showmax Originals have become home to some of Africa’s most beloved entertainment shows, including hits like The Real Housewives of Lagos (RHOLagos), Big Brother Naija, and Nigerian Idol.
With content available in 40 languages and a growing library exceeding 84,000 hours, these platforms play a vital role in African storytelling. However, the rise of illegal streaming not only impacts revenue but also threatens the sustainability and growth of the creative industry.
To counter this, MultiChoice has joined forces with Partners Against Piracy (PAP) and cybersecurity firm Irdeto, actively tracking and shutting down illegal operations in multiple African nations.
With piracy tactics evolving, the fight against content theft must also advance. Strong collaborations, advanced technology, and public awareness are key to protecting the creative industry. By shutting down illegal operations and promoting legal alternatives, organizations like MultiChoice, PAP, and Irdeto are ensuring that content creators receive their rightful earnings and that audiences can continue to enjoy high-quality entertainment.
Ultimately, safeguarding creative content is not just about protecting businesses—it’s about securing the future of storytelling, preserving jobs, and ensuring that Africa’s thriving entertainment industry continues to grow. The fight against piracy is a shared responsibility, and by supporting legal content, we all contribute to a stronger, more sustainable creative economy.
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