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New Year, old woes: Need for economic relief

Nigeria’s economy stands at a crossroads, facing profound challenges under President Bola Ahmed Tinubu’s administration.

His economic reforms, introduced as a cure for the nation’s long-standing ailments, have placed significant burdens on citizens, leaving many questioning whether the renewed hope mantra is attainable or a mirage.

When President Tinubu assumed office in May 2023, he inherited a nation grappling with skyrocketing inflation, unemployment, and dwindling oil revenues. His administration’s policies—including the removal of fuel subsidies and exchange rate unification—were designed to stabilize the economy and attract foreign investment.

Yet, these measures have inflicted severe pain on ordinary Nigerians, with fuel prices tripling and transport costs spiralling out of control.

For decades, Nigeria has struggled with a mono-product economy heavily reliant on crude oil exports. This overdependence has made the nation vulnerable to global oil price fluctuations, while non-oil sectors such as agriculture and manufacturing remain underdeveloped.

Tinubu’s administration aimed to diversify the economy and reduce fiscal deficits, but progress has been slow and uneven.

The unification of Nigeria’s exchange rate, one of Tinubu’s cornerstone reforms, was intended to close the gap between the official and black-market rates. However, the naira’s subsequent devaluation has unleashed a wave of inflation, driving up the cost of imported goods and services. Businesses reliant on foreign raw materials have faced closures, while ordinary Nigerians struggle to afford basic commodities.

This currency crisis has had a cascading effect on key sectors. The pharmaceutical industry, for example, is heavily dependent on imported inputs. The devaluation has led to higher costs for essential medicines, placing them out of reach for many.

Similarly, the he education sector has not been spared, with rising costs for imported educational materials adding to the financial burden on families.

The human toll of these policies cannot be overstated. A visit to any market across the country reveals skyrocketing food prices, while transportation costs have made daily commutes a luxury. Electricity tariffs have risen, leaving households to make difficult choices between light and sustenance.

With over 133 million Nigerians living in multidimensional poverty, the promise of a brighter future seems increasingly out of reach.

Rural areas, where a majority of Nigerians reside, have been disproportionately affected. Farmers, already grappling with poor infrastructure and insecurity, now face higher costs for agricultural inputs such as fertilizers and machinery. This has further exacerbated food insecurity, pushing more families below the poverty line.

President Tinubu has likened these reforms to a painful but necessary surgery, emphasizing that the sacrifices demanded today will yield a prosperous tomorrow. While his rhetoric speaks of hope and resilience, scepticism among Nigerians remains high.

Palliatives, such as cash transfers and food distributions, have been criticized for their inadequacy and inefficiency, leaving many feeling abandoned by a government that demands sacrifices but offers little in return.

The administration’s efforts to attract foreign investment have also faced hurdles. While the removal of fuel subsidies and exchange rate unification were designed to signal fiscal discipline, potential investors remain wary of Nigeria’s high debt levels, policy inconsistency, and pervasive corruption.

For many citizens, the light at the end of the tunnel seems more like an approaching inferno. Distrust in the government is fuelled by reports of wasteful spending, including lavish allowances for public officials and the procurement of luxury items.

Notable among these is the recent procurement of a new presidential jet, a fleet of luxury vehicles for government officials, and the construction of a new vice president’s lodge.

Such expenditures, occurring amidst dwindling resources and biting economic hardship, are seen as emblematic of the government’s extravagant lifestyle.

While citizens are being asked to endure economic hardships, these actions have sent a troubling message of insensitivity and detachment by the government. The cost of these projects runs into billions of naira, funds that many believe could have been redirected to social programs or infrastructural development.

This perceived extravagance has fuelled protests and calls for greater accountability, with civil society organizations and labour unions demanding that public officials share in the sacrifices being asked of the populace.

Civil society organizations and labour unions have been vocal in their criticisms, calling for greater accountability and transparency. Protests and strikes have erupted across the country, reflecting the growing frustration of a population that feels marginalized and unheard.

The youth, in particular, have expressed their disillusionment, with many seeking opportunities abroad in what has been termed a “japa” wave of emigration.

To restore public confidence and ensure that economic reforms deliver their intended benefits, the government must demonstrate shared sacrifice and a commitment to equity. Reducing government waste is a crucial first step.

Unnecessary expenditures should be cut, and fiscal discipline must be demonstrated at the highest levels of government. The perception of a government unwilling to tighten its belt undermines public trust and fuels resentment.

Strengthening safety nets is equally essential. Effective social programs must be implemented to cushion the most vulnerable from the impact of economic reforms.

 Subsidized healthcare, affordable housing, and targeted financial assistance to low-income families can provide immediate relief and rebuild trust in government.

Boosting local production should be a priority. Policies that encourage local industries, agriculture, and innovation can reduce reliance on imports. Investments in infrastructure, power supply, and technology are critical to achieving this goal and ensuring sustainable economic growth.

Engaging the private sector is another important strategy. Partnerships should be fostered to attract investment and create sustainable employment opportunities. Supporting small and medium-sized enterprises through access to credit and favourable policies can drive economic growth and provide jobs for millions of Nigerians.

Transparency is key to rebuilding trust between the government and its citizens. Clear communication about policy objectives and progress can help bridge the gap between leaders and the populace. Open governance and public participation in decision-making processes are essential for fostering accountability and inclusivity.

Finally, addressing insecurity is non-negotiable. Economic reforms cannot succeed in isolation. Tackling the pervasive insecurity that disrupts lives and livelihoods is essential for creating an environment conducive to growth and development.

President Tinubu’s neoliberal economic reforms hold the potential to transform Nigeria’s economy, but this transformation cannot occur in a vacuum.

Leadership must rise above rhetoric, embodying a spirit of shared sacrifice, integrity, and service to the nation. Nigerians need to see their leaders prioritizing public welfare over personal comfort and making decisions grounded in equity and transparency.

Economic recovery is not a sprint but a marathon that demands collective effort and unwavering commitment.

The government must demonstrate that its policies are not merely for show but are underpinned by a genuine desire to alleviate the burdens on citizens. Empty assurances will only deepen disillusionment.

For Nigeria to navigate its way out of these challenging times, leaders must inspire trust and foster a sense of shared responsibility. They must align their actions with the sacrifices they demand from the populace.

Only through such authentic leadership can the nation move beyond the present hardships into an era of true progress, equity, and sustainable prosperity.

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