By David Adenekan
HOW BEST do we explain the current economic hardship in the country to even a layman on the street than the simple illustration in a video clip I would have loved posted with this write-up?
Suffice it to say that, is it not ironical that the current inflationary gap defies all logic!
Prejudice apart, my being very critical of President Bola Ahmed Tinubu’s economic policies is borne out of my candid position on national issues based on objectivity. Let the truth be told.
I will be the first to applaud and promote his economic policies, if it is for the good of the people.
I recently gave him a pat at the back for the Supreme Court judgement on Local Government Financial Autonomy, because it is the right thing to do; the return of power to the grassroot.
“Let the people at the grassroot breathe.”
We must not support him blindly just because he is our kinsman. In doing that, we are not helping him. Baba Wole Soyinka is a classic example of a real Yoruba man, he has knocked PBAT’s poor judgement on the ongoing protest to #end bad governance in Nigeria. Yes, a true son of our progenitor, Oduduwa. Prof. Wole Soyinka did. I am proud of him. Gbam!
The National Bureau of Statistic (NBS) just reported that, you will need nothing less than N1500 to take just one healthy meal in a day in the Southwest geopolitical zone.
If the minimum monthly salary is still 30k and you are spending an average of N45k to survive on a one-meal per day for a whole month, how does that add up?
Also, our local currency is still in the mode of a free-fall.
Today, the exchange rate to a dollar is at N1,615. How did we get here as a country?
Moreover, the poverty index is a sign of severe economic hardship in a country that prides itself as the largest economic hub in Sub Sahara Africa.
Based on the World Bank projections, about 40.07 percent of Nigeria’s population are estimated to be living below the international poverty line by the end of 2024.
Furthermore, National Bureau Of Statistics of Nigeria (NBS) reported in the second quarter of the year 2024 that the inflation rate in the country has climbed up from 22.8% in June 2023 to 34% in May 2024.
The month-on-month rate of inflation in June 2024 was 2.31%, which was 0.17% higher than May 2024.
The NBS also reported that food and non-alcoholic beverages continued to be the biggest contributions to inflation in June, with food inflation rising to 40.87%.
In general, the inflation rate may rise to more than 40% by the last quarter of the year 2024.
The economic indicators are not just favourable signs for Nigeria. Not at all.
Who else do we blame for all of these economic calamities?
If not bad governance. Yes, we must end bad governance in Nigeria.
In the final analysis, the economic hardship in the country is not palatable. PBAT must take the bull by the horns to act now:
- Fix our refineries to reduce pump price and stop living on propaganda. The Port Harcourt Refinery that was initially scheduled to be completed by the end of 2023 is still in limbo; 8 months after. Is PBAT sincere with his policy statement at all?
- Declare emergency on food security.
- Encourage more diaspora remittances to boost our forex market.
- Cut the cost of running its government and block all the leakages in government that leads to monumental corruption.
- Any logical country in the world will look for ways to subsidize the most critical sectors of the economy, power energy and food security. A well-managed subsidy regime, devoid of corruption must come back to reduce the pump price at the retail market. It is the right thing to do to support the citizenry to survive the effects of a market economy.
In addition, PBAT needs to budget more money into capital expenditures, and reduce budget on recurrent expenditures to jump up our Gross Domestic Products, GDP.
Yes, it is doable.
“A stitch in time saves nine.”
Only Time will tell.
David Adenekan writes from Chicago, Illinois; he Is the editor of Shekinah Magazine and a media expert.
Opinions expressed by individual columnists are their own and do not necessarily reflect the views of policies of the website’s management.
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