President Bola Ahmed Tinubu‘s administration has been marked by significant economic reforms, which have brought a mix of hardship and hope to Nigerians. One of the most contentious policies was the removal of the fuel subsidy, announced on his inauguration day as President. This move led to a significant increase in petrol prices, exacerbating the already high cost of living in Nigeria.
The Fuel Subsidy Conundrum
The removal of the fuel subsidy has contributed to inflation surging to 34.19 percent, with food inflation exceeding 40 percent. Recently, President Tinubu revealed that the announcement of subsidy removal was not originally in his speech, sparking controversy over the timing and transparency of the decision.
President Tinubu’s exact quote was, “That was the day I declared that the subsidy was gone.” This statement was made during a special Iftar held in his honor at the Presidential Villa, where he reflected on his decision to remove the fuel subsidy on his inauguration day.
A Glimmer of Hope
Despite these challenges, there are signs that inflation is gradually easing, and the recent completion of the Dangote refinery offers hope for reducing Nigeria’s reliance on imported fuel.
Additionally, the administration has implemented various economic reforms aimed at stimulating growth and reducing debt burdens.
Economic Reforms: A Mixed Bag
Some of the notable reforms include:
- Tax Reforms: Simplifying tax administration, broadening the tax base, and ensuring fair contributions from all.
- Exchange Rate Unification: Reducing economic distortion and speculation by unifying Nigeria’s multiple exchange rates.
- Increased Government Revenue: Doubling aggregate government revenues and decreasing revenue spent on debt service.
The Role of States and Local Governments
To mitigate the effects of these economic reforms, states and local governments have a crucial role to play. Nigerians demand that their governors utilize available resources to ameliorate their sufferings, rather than indulging in flamboyant lifestyles and making empty promises.
Local governments must be allowed to function independently, rather than being treated as an appendage of the state governor.
Empowering Local Governments
As enshrined in the 1979 Constitution, local governments are meant to be autonomous entities, responsible for providing essential services to their communities. However, in reality, local governments in Nigeria are often treated as appendages of state governments.
To truly mitigate the effects of economic reforms, local governments must be allowed to function independently, with their own revenue sources and decision-making powers. This will enable them to provide essential services, such as healthcare, education, and infrastructure, to their communities, thereby reducing the burden on state and federal governments.
Notably, President Tinubu has taken significant steps to empower local governments by ensuring that their funds are paid directly to them. This move aims to prevent state governments from misusing local government funds, which has deprived the Nigerian masses of effective local representation.
However, state governments have opposed this move, preferring to maintain control over local government funds. This opposition raises important questions about the commitment of state governments to serving the Nigerian people.
The Role of the Private Sector
While the private sector is a crucial instrument for economic development, it is disheartening to note that in Nigeria, they have become exploitative. Many private sector employers treat Nigerians as slaves, paying them meager salaries and subjecting them to unfavorable working conditions.
A critical example is the education sector, where private schools pay graduates minimal wages amidst other unfavorable tactics, such as deductions from their already meager salaries.
The proprietors of these private institutions underpay Nigerians, apparently leveraging the high unemployment rate in the country. The need to feed and make ends meet drives Nigerians to accept these exploitative jobs.
Ensuring Fair Labor Practices
To address this issue, government reforms in the education sector should be holistic and all-encompassing, specifying that private sector employers, especially proprietors of schools, must pay minimum wage to their workers, with sanctions in case of default. This will improve the standard of living of Nigerians, reduce exploitation, and provide job security.
A Call to Action for Legislators
Nigerian legislators have proven over the years that they are nothing but stooges of the executives, rubber-stamping all bills without thorough checks and balances. The unabating rumored bribery allegations and scandalous acts, which are fast becoming an institution, are unthinkable.
Members of the National Assembly must put a grinding halt to these shenanigans and pave the way for effective policy-making and legislation. As the proverb goes, “If your gut reeks, you should find a way to freshen it up.”
Conclusion
As Nigerians navigate these economic challenges, it is essential to acknowledge their resilience and adaptive nature in periods of hardship. While President Tinubu’s economic reforms have brought significant challenges, they also offer promise for a brighter future.