By Comrade Gbenga Olowoyo
“To crash high cost of staple foods, essential daily needs and services prices of various petroleum products must come down”- anonymous
Nigerians have reached the dead end of economic delusion leading to what one of the key players in the second republic said at that time, that Nigerians can not claim to be suffering when they have not started eating from dustbins.
What we are witnessing today is more than suffering, on account that there is no more food in the dustbins, because what Nigerians are undergoing today is beyond multi dimensional sufferings, apart from the scavengers; the real scavengers today are the sane Nigerians whose purchasing power have been devalued and eroded as a result of financial policy somersault: Nigerians are now penniless to fend for themselves not that they are jobless but rather their economic ability to meet their fundamental necessity needs have become comatose .
The staple food that middle class and the classless eat are now out of reach to both the haves and haves-not , hence, everybody has turned to beggars in his fatherland what manner of situation are we?, that, to eat one square meal has become difficult; to move from one place to another via public transport even with personal car is hard, due to the escalated price of Petroleum Motor Spirit (PMS) otherwise known as petrol.
An account given by cross section of Nigerians have brought new dimension to the precarious situation we find ourselves. How do you describe a situation where somebody put out his child for sale due to economic hardship.
Nigerians are not oblivion that opinion leaders are speaking out to call the attention of the power that be to the dehumanising and economic enslavement people are undergoing presently under home grown democratic governance.
Inflation rate and its consequences
Relying on the official document from the National Bureau of Statistics (NBS); Nigeria’s inflation rate rose to 33.69% in April 2024 compared to March 2024 headline inflation rate which was 33.20%.
According to National Bureau of Statistics (NBS)’s Consumer Price Index (CPI) indicated that “In April 2024, the headline inflation rate increased to 33.69% relative to the March 2024 head line inflation rate which was 33.20%,” the Bureau said in its report.
The April 2024 headline inflation rate showed an increase of 0.49% points when compared to the March 2024 headline inflation rate.
“On a year-on-year basis, the headline inflation rate was 11.47% points higher compared to the rate recorded in April 2023, which was 22.22%.
“This shows that the headline inflation rate (year-on-year basis) increased in the month of April 2024 when compared to the same month in the preceding year (i.e., April 2023).
“Furthermore, on a month-on-month basis, the headline inflation rate in April 2024 was 2.29%, which was 0.73% lower than the rate recorded in March 2024 (3.02%). This means that in the month of April 2024, the rate of increase in the average price level is less than the rate of in crease in the average price level in March 2024.”
Consequently, the prices of food and basic commodities have gone out of hand from several weeks past, as Nigerians continue to battle with high cost of living and one of the country’s toughest economic crises caused by the current government’s double faced policies of petrol subsidy removal and unification of forex windows. The naira, which initially appreciated against the dollar in April, tumbled from about N1,100/$1 to about N1,500/$1.
With the current inflation outcome by the NBS, Nigeria is seriously under siege of trial and error economic policy application and implementation.
The practical impacts of this inflation is presently being felt by everyone in Nigeria. Consumers are facing higher costs for different type of commodities and increased transportation costs, which are already leading to lower levels of consumption and latent social unrest.
It is not funny to note that over 767 manufacturing companies have shut down in Nigeria while whooping sum of N350 billion worth of goods were unsold in the year 2023; can Nigerians survive under this economic Policy uncertainty.
According to Professor of Economics from Ekiti State University, Ado Ekiti, Professor Taiwo Owoeye, who posited that two major reasons are responsible for the current hyper inflation confronting the Nigeria economy
“First and foremost, the unification of foreign exchange and secondly high transportation cost which is necessitated by the removal of fuel subsidy without any sustainable corresponding preparation for eventuality.”
In his words, it is very unfortunate that Nigerians are bearing the brunt of unprecedented hardship with high cost of food items and other essentials triggered by two major reasons identified above.
Federal government should, as a matter of urgency, raise the salary of workers across board to enable Nigerians mitigate the hyper inflation, that is the only urgent solution to the current problem facing Nigerians apart other sustainable economic roadmap such as revitalisation of our moribund refineries and construction of new ones, he submitted.
In his spiritual words,the primate of the Church of Nigeria (Anglican Communion), Archbishop Henry Ndukuba corroborated the fact that the economic and security challenges that Nigeria is going through as a nation, has shown that the country is under economic and security siege.
The man of God declared in Abuja at a press conference organised in respect to the commencement of the Diocese of Abuja Second Session of 12th Synod, which took place on Thursday, May 9, 2024, where he said “there is massive corruption that is going on in Nigeria”.
According to the Primate, the kind of corruption and looting of the nation’s treasury and also the looting of Nigeria’s natural resources are evidence that the country is under siege.
“Nigeria is a greatly blessed nation, but what we are experiencing, is like we are under siege. Because, it is a common thing among us that some of us may not even know where the next meal will come. Nigeria is also under spiritual siege.
“We are also in a sociopolitical siege, in a situation where there is no rule of law, no social obligations and accountability by leadership. We see that things have gotten out of hands, like Chinua Achebe, would say, ‘Things fall Apart’ and the centre can no longer hold.
“The rate of suicides we are having in Nigeria and problems and challenges that are so prevalent amongst us, shows that there is need for divine intervention. We need God’s divine intervention,” he said.
Needs for serious economic caution
With the present economic sting in the country and the rate at which small businesses are dying Federal Government needs to take serious caution with economic policy that can protect small scale businesses to prevent dire consequences.
The Operators of Micro, Small and Medium Enterprises (MSMEs) are unhappy over the harsh economic scenario in the country that is leading to the death of many Small and Medium Enterprises(SMEs) in recent times.
Factors such as Price spike, unavailability of raw material, exchange rate volatility and lack of awareness about mechanisms to manage unpredictable markets, the FX market volatility, among others, have crippled SMEs businesses nationwide.
In the words of the National President of the Association of Small Business Owners of Nigeria (ASBON), Femi Egbesola “the untoward situation in the economy is killing SMEs and other businesses nationwide, adding that reports of business scenarios were frightening and raising curiosity among players and operators in the business environment.
The ASBON boss decried that Nigerians are about to dump their businesses to look for white-collar and blue collar jobs to survive the harsh reality on ground, predicting that, if an urgent solution is not provided, prices of commodities would continue to go up,
He averred that business environment was no longer promising and futuristic as more businesses have plunge into debts due to overhead cost of running businesses
He alluded that a good number of businesses have closed their shops, particularly, those who depend solely on FX and market transactions while many operators have fallen into a large swoop due to the current predicament in the economy.
The general opinions still continue to reverberate that when the federal government wanted to remove fuel subsidy, they should have made a proper planning in ensuring that other variables and factors that can make businesses strive would have been made available such as stable electricity , sustainable economic template with human face among others
“Businesses are yet to recover from the shocks of the new round of currency devaluation resulting from the sudden unification of the exchange rate which has driven the dollar official exchange rate to about and over N1400.
Also reacting, the Director General of Manufacturers Association of Nigeria (MAN) Segun Ajayi-Kadir, in a telephone conversation ,urged the new governor of the Central Bank of Nigeria(CBN), Yemi Cardoso to prioritise addressing the upward inflationary trend that has reared its ugly head as a nightmare for manufacturers.
MAN noted that the unfavourable situation has positioned the country among the worst countries to do business with a rank of 171 out of 190 across the globe
Economic prosperity of Nigerian workers in jeopardy as a result of present starvation and penury
It is no more news that the present agitations from Nigerian workers for living wage is creating unprecedented ripples of suspicion and unreadiness from government side due to its insincerity of purpose, the divergent positions on the New National minimum wage calls for concern of all positive minded Nigerians
Government is proposing N62,000 while Labour settles for N250,000( as at the time of writing this opinion) as New National Minimum Wage; where do we go from here.
Honestly, the compensation structure in Nigeria’s public service deserve a total review and overhaul. Unless we choose pretend as if all is well, we all know that some things do not just add up in the compensation of Public Servants .
For example, the minimum wage, as a take-home pay, cannot take anyone home at this time in our economic history. Considering the ever-increasing price level and the national currency devaluation, both of which have led to a spiral inflationary level, wages at all levels have become inadequate to meet the provision of basic needs of life for so many workers both in Public and Private sectors these scenarios encourage corruption and lack of accountability. It gives room for malpractices, financial impropriety, and malfeasance.
Honestly, the last two decades in Nigeria, the economic history have been characterised by weak economic growth, elevated inflation, high unemployment, and rising poverty. Poor access to credit, weak infrastructure, multiple taxes, and the general unconducive business environment have led to the exit from Nigeria of many foreign businesses and the shut-down of local firms thereby worsening the unemployment situation in the country.
“As Nigeria marks 25th unbroken Democratic Governance on June 12th , 2024 (as a Democracy Day) in her democratic journey, it is imperative to have a clear roadmap for socio-economic recovery and sustainability to allow for the delivery of democratic dividends.”
Indeed, achieving socio-economic recovery and sustainability necessitates a collaborative effort involving the government, private sector, citizens, and civil societies and the media in order to promote good governance by holding the government accountable .
Roadmap to Nigeria economic prosperity and the way to the promised land
As a patriotic Nigerian, l will continue to advocate for a just and appropriate policy agenda that will bring about economic turnaround , socio political and infrastructural development of Nigeria.
Severally and at different fora, l have been asking the following questions;
Why is it difficult for Nigeria government to build new refineries or bring back to life the old refineries? Is it spiritual or mere economic Sabotage?
Why is it easier with unprecedented speed to begin the construction of Lagos-Calabar Coastal road with whooping sum of over N16 Trillion Naira while some Federal roads across the country are death trap to road users?
Why is it difficult for Nigeria government to collaborate with foreign investors to come and build refineries in Nigeria, despite the fact that factors that can aid such investment are abundantly available in Nigeria and inspite of regular visit of both Mr President and State Governors to foreign countries to scout for foreign investors?
These posers call for deeper thoughts from our Leaders.
To this end, Federal government should come up with clear policy direction by considering the underlisted suggestions:
Allocate resources towards revitalising the formerly prosperous companies of the 1970s and 1980s that brought pride to Nigeria so as to generate job opportunities, stimulate economic growth rather than embarking on white elephant projects.
Federal government should invest in industries and promote local production, which will help reduce our dependence on importation of goods we can produce in Nigeria especially Agricultural products
Essentially, government should encourage modern farming techniques by providing farming equipments and developing value-added industries, we have the potential to enhance productivity, guarantee food security, and empower our farmers.
Federal Government should establish effective markets for our agricultural products which will ensure that farmers receive fair prices , stimulates economic activity and creates opportunities for businesses to thrive.
Accessible healthcare system is essential for the well-being of a nation. The present administration should prioritise investments in healthcare infrastructure, human resource development, and primary healthcare services.
Education plays a crucial role in fostering the development of human capital and driving economic growth. By allocating a significant portion of our national budget to education, we can empower our youth with the necessary skills and knowledge to thrive in the digital age. Promoting technical and vocational education can effectively tackle the problem of unemployment by offering practical skills that are in line with the demands of various industries.
Essentially, it is imperative that we prioritise the enhancement of our electricity infrastructure. Having a dependable and consistent power supply is crucial for the progress of industries, the generation of employment opportunities, and the overall welfare of our population. We should prioritise diversifying power sources and implementing necessary reforms in the power sector rather than rather than unnecessary removal of the “claimed” electricity tariff and classification of Electricity consumers into BAND A,B,C,D and E without justifiable reason by the Minister of Power Adebayo Adelabu
Our democracy must not turn us to demonstration of craziness
I rest my case!!!
Nigeria we hail thee!!!
Comrade Gbenga Olowoyo fcia fimpa JP, a Trade unionist and industrial relations practitioner gbengaolowoyo3@gmail.com
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