By Isah Aliyu Chiroma
The recent broadcast by President Bola Ahmed Tinubu sent a chill down the spine as the citizens need the fastest measure to take to address the current situation we found ourselves, the biggest economy in Africa, Nigeria, has a variety of difficulties. The elimination of fuel subsidies is one of the most divisive topics. The decision to end fuel subsidies has been met with conflicting responses, igniting discussions across the country. Although many people have experienced financial hardship as a result of migration, it also offers a chance for a better future if it is well managed.
In Nigeria, fuel subsidy removal has long been a difficult topic. The subsidy, according to supporters, was unsustainable and placed a significant financial strain on the government when funds would have been better spent on important infrastructure projects, healthcare, and educational initiatives. In addition, they contend that eliminating subsidies will promote private-sector investment in the oil sector, increasing its competitiveness and efficiency.
However, detractors contend that ordinary Nigerians, particularly those in the low-income status, have suffered significantly as a result of the abrupt elimination of subsidies. Transportation, food, and other vital goods and services have all seen an increase in the cost of living as a result of the spike in fuel prices. This choice has had a devastating immediate effect on the average Nigerian, aggravating inequality and poverty.
Beyond the issue of gasoline subsidies, Nigeria has been dealing with a difficult economic environment. Economic growth and development have been hampered by enduring problems like corruption, inconsistent policies, poor infrastructure, and an over-reliance on oil revenues. Nigeria’s economy is not sufficiently diversified, making it susceptible to changes in oil price variations and resulting in economic instability.
The issue of unemployment is still quite important, especially for young people. There is a sizable pool of young people who are unemployed or underemployed as a result of the lack of possibilities and restricted access to high-quality education and skill development. This demography offers opportunities and challenges for the future of Nigeria.
The purchasing power of the naira has also been diminished by inflation and currency depreciation, placing a hardship on the finances of regular Nigerians. Due to citizens’ struggles to pay for essentials due to high inflation rates, the government must take action to stabilize the economy and guarantee everyone’s economic prosperity.
Nigeria faces many difficulties, yet there is still cause for optimism and hope for the future. The government, commercial sector, and individuals must take strong and decisive action to address these concerns.
The former President of Nigeria, Muhammadu Buhari, has taken several policy measures to combat the serious economic challenges the nation has faced. He has consistently maintained that the fuel subsidy has outlived its usefulness, costing trillions of Naira yearly. This amount would have been better spent on public transportation, healthcare, schools, housing, and national security. However, it has been funneled into the deep pockets and lavish bank accounts of a select group of individuals, who have amassed wealth and power that threaten the fairness of the economy and the integrity of democratic governance.
The preceding administration saw this as a looming danger, making the removal of the subsidy and the preferential exchange rate system inevitable. The fight to reform the economy for the long-term good is crucial, and ending the subsidy and preferential exchange rate system is key to this fight. The defects in the economy have profited a tiny elite, and the people who grow rich from them will fight back through every means necessary.
The administration recognizes the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth, and will invest N50 billion on Conditional Grants to 1 million nano businesses between now and March 2024. This programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system. The President will also fund 100,000 MSMEs and start-ups with N75 billion.
Recently, President Bola Ahmed Tinubu has signed four Executive Orders to address unfriendly fiscal policies and multiple taxes that are stifling the business environment. These orders will provide necessary buffers and headroom to businesses in the manufacturing sector to continue to thrive and expand. To strengthen the manufacturing sector, the President will spend N75 billion between July 2023 and March 2024, funding 75 enterprises with great potential to kick-start sustainable economic growth, accelerate structural transformation, and improve productivity.
To ensure that food items remain affordable, the President has engaged with various farmers’ associations and operators within the agricultural value chain. He has ordered the release of 200,000 Metric Tonnes of grains from strategic reserves to households across the 36 states and FCT to moderate prices and provide 225,000 metric tones of fertilizer, seedlings, and other inputs to farmers committed to the food security agenda.
The plan to support the cultivation of 500,000 hectares of farmland and all-year-round farming practice remains on course, with N200 billion out of N500 billion approved by the National Assembly disbursed. This expansive agricultural program will target small-holder farmers and leverage large-scale private sector players in the agro-business with strong performance records.
The Infrastructure Support Fund for the States has been approved, enabling States to intervene and invest in critical areas and bring relief to many of the pain points.
Economic Diversification: must be embraced and lessen its dependency on oil. The nation can open up new doors for job creation and accelerate economic growth by supporting industries like agriculture, technology, manufacturing, and renewable energy. Investment in infrastructure is essential for promoting economic growth. More foreign investment and increased economic activity can be attracted through enhancing telecommunications, power, and road networks.
The youth are Nigeria’s future. Their potential will be unlocked and they will help the development of the country if they are given opportunities for entrepreneurship, quality education, and suitable training. Programs for youth empowerment and initiatives for vocational training are crucial in this regard.
Improving Nigeria’s economic prospects requires a serious effort to combat corruption. Fostering investor trust and bolstering the rule of law will be accomplished by putting open governance practices into place and holding people responsible for their actions.
To lessen the immediate effects of the elimination of fuel subsidies on vulnerable residents, the government must create efficient social safety nets to help those who would be most impacted by the increase in fuel prices. Nigerians have clearly experienced economic hardship as a result of the elimination of fuel subsidies. However, these difficulties also offer a chance for the nation to experience a profound transition. Nigeria can overcome these challenges and develop a stronger and more robust economy by embracing economic diversification, making infrastructure investments, empowering the next generation, fostering transparency, and putting in place social safety nets.
Nigerians have the key to hope for a brighter future. A wealthier and equitable Nigeria can be achieved through teamwork and imaginative leadership. Nigeria may overcome its difficulties and advance towards a brighter and more optimistic future with the correct policies and commitment to nation-building.
