By: Bukunmi Oluwande
AS Nigerians struggle with an increasingly dire economic situation, President Bola Tinubu has attempted to address the nation’s collective anxiety. His recent speech came amid a time of pronounced economic hardship, rising costs of living, and widespread discontent. While Tinubu’s administration inherited many of these challenges, his address underscored both the government’s strategy for recovery and the persistent hurdles Nigeria faces. Nigeria, often known as the “Giant of Africa,” is Africa’s most populous nation and one of its largest economies. However, despite its oil wealth and diverse economy, the country has struggled with deep-rooted economic issues worsened by years of poor governance, corruption, and global economic downtime which birthed inflation, unemployment, poor exchange rate. Inflation is driven by factors like increased food cost and currency devaluation, In January 2024, studies showed that the inflation rate for essential items such as food cost which was 25 per cent as at 2023 rose to 40 per cent, essential commodities have become really unaffordable for average Nigerians. In his address, President Tinubu outlined several key economic initiatives aimed at curbing inflation, which are stabilizing the naira, and fostering long-term growth.
But the reverse is the case as many Nigerians are yet to feel the impact of these reforms. The unemployment rate keeps increasing, with estimates placing the figure around 33 per cent as of early 2024. Youth unemployment is exceptionally concerning, creating a sense of disillusionment among the younger generation. The lack of job opportunities has fueled social unrest and pushed many to seek opportunities abroad. President Tinubu said: “The interventions to bring the government nearer to the people are already yielding results, with the activation of the student loan programme”. Let us note that the student loan programme hasn’t benefitted many, but the government keeps going on and on about it as a defence, laying hold on this achievement of theirs. Another of its kind is the consumer credit scheme, and the affirmation of fiscal autonomy for local government.
A student who went to the UK in pursuit of a master’s degree in physiotherapy once said: “When it comes to receiving funds from home, the situation is really sad. You receive a million (naira) and when you convert it to pounds, it’s only about £500. Whereas in just January of this year, you could get so much more.” She said further that “If it continues, it is scary. Where will we be three or four years from now?” Even those studying abroad are finding things hard with the exchange rate. In June 2023, Nigeria unified its exchange rate system in a bid to stabilise the naira and attract foreign investment. This devaluation has seen the naira plummet by over 50 per cent against the dollar, further increasing the cost of imports, particularly fuel, food, and machinery. The unofficial parallel market has also seen the naira trading at rates far weaker than the official rate. One of the most vehement policies implemented by the Tinubu administration is the removal of the fuel subsidy. Historically, fuel subsidies have been a major drain on Nigeria’s finances, costing the government an estimated ₦4 trillion annually. Tinubu argued that the subsidy primarily benefitted a wealthy few, while the majority of Nigerians saw little benefit. By removing the subsidy, Tinubu hopes to redirect funds to other critical sectors like healthcare, education, and infrastructure.
However, this move has also led to a sharp increase in fuel prices as of today fuel cost N1,100 per litre in some filling station, increasing the cost-of-living crisis for many Nigerians. Affecting businesses negatively. Tinubu promised targeted palliatives, including transportation subsidies and cash transfers to help the poorest citizens. Easier said than done, Citizens of Nigeria doesn’t just want to be heard we need immediate actions taken and a proper follow up to it’s implementation. The removal of fuel subsidies and the devaluation of the naira have contributed to a sharp increase in transportation costs, food prices, and general inflation. Workers across various sectors have called for protests and strikes, demanding higher wages to cope with the rising cost of living. In August 2023, the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) organized nationwide protests, calling on the government to reverse some of these policies and provide immediate relief for struggling families.
Public sentiment remains divided. While some Nigerians recognise the necessity of Tinubu’s reforms for long-term economic stability, others are frustrated by the lack of immediate relief and fear that the poor and middle class will continue to bear the worse impact of these policies. The government needs to restore public confidence by ensuring that the benefits of these reforms are felt across all segments of society. Transparency, effective communication, and accountability will be critical in building trust between the government and the people. Instead of focusing on irrelevant issues like changing the National Anthem from “Arise, O Compatriots” to the previous “Nigeria We Hail Thee,” which was composed by two British women, Lilian Jean Williams and Frances Berda, as opposed to “Arise, O Compatriots,” composed by members of our Nigeria Police Band, we should prioritise cherishing and preserving our heritage.
- Oluwande, a 400 level student in the Department of English and Literary Studies, Atiba University, is an intern in Nigerian Tribune.
Read Also: Reports of bandits threatening Niger residents, false — Police
