By Eric Elezuo
In 30 days that President Bola Tinubu has been in power, a lot of water has passed under the bridge. While the loyalists and supporters of the president believe that he has taken steps in the right direction, the generality of the Nigerian population are groaning in what many described as consciously inflicted hardship.
The Tinubu administration kicked off on May 29, 2023, with a blanket removal of subsidy on petroleum products; a move many analysts believed has been the pivot through which all other counter effects have emanated.
During his inauguration speech, Tinubu noted that “fuel subsidy is gone”, bringing an end to what a section of Nigerians agree was the only lifeline enjoyed by the public from any government. They argued that with its removal, and without any tangible fall back or palliative, it means the Tinubu administration has removed the only connection between the people and the government of the day in terms of cushioning effect of economic meltdown.
However, Tinubu had insisted that subsidy was a fraud enjoyed by only the rich at the detriment of the poor, and must be removed, the level of protestations from the public notwithstanding. He added that he was only a mouthpiece to the subsidy removal, as the process was not captured in the 2023 budget, which was the ground work work the immediate past government of Muhammadu Buhari.
“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor. Subsidy can no longer justify its ever-increasing costs in the wake of drying resources.
“We shall, instead, re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions,” he said.
The payment of subsidy on petroleum products, everyone agreed, has, however, threatened the nation’s fiscal position and impacted the government’s ability to fund developmental projects across the nation, but what is in contention is the timing of the removal as it has adversely affected the already impoverished population rather than ameliotating their hardship.
A cross section of Nigerians, including organised labour vis a vis the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), the former presidential candidates of the Labour Party, Mr. Peter Obi and Peoples Democratic Party (PDP), Atiku Abubakar among many other influential Nigerians, have reasoned that though the removal was a necessity, its method of introduction by the Tinubu government was not people-friendly. They argued that measures could have been laid bare to cushion the effects before its removal.
But in defence, Tinubu, in his first broadcast to the nation, to commemorate June 12 Democracy Day, said though he recognised the sufferings Nigerians were going through, the removal of fuel subsidy was necessary to save the country from going under. He promised to give succour through a combination of reliefs in different sectors of the economy.
“I feel your pain. This is one decision we must bear to save our country from going under and take our resources away from the stranglehold of a few unpatriotic elements. Painfully, I have asked you, my compatriots, to sacrifice a little more for the survival of our country. For your trust and belief in us, I assure you that your sacrifice shall not be in vain. The government I lead will repay you through massive investment in transportation infrastructure, education, regular power supply, healthcare and other public utilities that will improve the quality of lives,” the president said.
But the amid the severe and biting pains, Nigerians are worried that the sacrifice Tinubu and his government called for is only being borne by the people while the government and officials still live large and in visible opulence.
The suspicion Nigerians had of the administration further heightened when news hit the media space that Tinubu has approved 114 per cent salary increment for himself, the Vice president, political office holders, members of the legislature and judicial officers. The story was however, denied by the presidency.
“We state, without any equivocation, that President Bola Tinubu has not approved any salary increase, and no such proposal has been brought before him for consideration,” a statement signed by the Special Adviser to the President on Special Duties, Communication and Strategy, Dele Alake, read. The statement blamed enemies of the administration for the false narrative, saying that it was “contrived to create ill-will for the new administration, slow down the upward momentum and massive goodwill the Tinubu-led administration is currently enjoying among Nigerians as a result of its fast-paced, dynamic and progressive policies.”
Other draconian or anti-people policy that has made media rounds, but denied by the administration, include increase in electricity tariff and supposed hike of petrol price to N700.
A cross section of Nigerians, who bared their minds to the The Boss, said there’s no smoke without fire, adding that most of these things begin as a rumour, then denied, and later resurrect to become the norm.
With the notion that it was moving on fast-paced, dynamic lane, having sacked, arrested and detained the Central Bank Governor, Mr. Godwin Emefiele and the Economic and Financial Crimes Commission (EFCC) chairman, Abdulrasheed Bawa, Tinubu had dished out policies that have further reduced the purchasing power of the naira, and enlisted the ordinary Nigerian in the lowest wrung of the poverty index. With the prices of food items, services and transportation hitting the roof, the masses are just left to wonder what line of ‘sacrifice’ the Tinubu government will come up with next in the guise of making things better. He had installed Folashodun Shonubi, a deputy governor in charge of operations in place of Emefiele.
Making good his promise of a “thorough house-cleaning” of the CBN during his inauguration, Tinubu, on June 14, through the CBN, announced the unification of all segments of the foreign exchange (FX) market, replacing the old regime of multiple exchange rate “windows” for different purposes with, in effect, a market rate.
African Business reported that naira immediately fell 36% against the dollar on the official market. The liberalisation of the market signalled the removal of some of the restrictions on the foreign exchange rate in the official market.
Tinubu’s wand wave led to the jumping of Nigeria’s stock market to its highest level in 15. The index of the Nigerian Stock Exchange soared 4% higher on the day to a closing price of 58,164 points, sending stocks’ year-to-date gains to 13.5%. The stock market continued its rally after the CBN liberalised the market, with market capitalisation climbing 3.26% to reach N32.7 trillion on 15 June, demonstrating the increased value of listed companies on the stock exchange.
The number of deals executed on 14 June showed a 15% increase compared to the previous trading period, with volume of trade rising by 9.28% to show increased market participation and increased liquidity, according to African Business.
But stakeholders across labour and traditional commerce have asked how the measures have affected the standard of living of the average Nigerian. The answer is farfetched as prices continue to reduce Nigerians to second class citizens, making families remain continually unsure of where and how the next meal (if any) will come.
But Tinubu seems optimistic, and while being hosted by the Lagos State governor, Babajide Sanwo-Olu, reiterated that his policies, as harsh as they seem at the moment, will in the long run, benefit Nigerians.
“We will work together in an open door policy that will bring Nigeria from the brinks back to a resilient economy; be ready.
“You governors, I know what I am going to do from Monday, Tuesday, up. I want us to be partners so that we can rescue our country and make it whole again.
“We shall receive the joy of giving, the joy of perseverance, the joy of resilience and endurance. You will see the reward. For this country is going to be prosperous for us.
“I am happy that the legislature, the executive arms of government are here. I appreciate it and I will continue to appreciate it more when we work together to dissect the possible economic prospects of our nation in favour of our children,” Tinubu said.
Meanwhile, operators within the downstream oil and gas sector have said the federal government has raked in N400 billion due to fuel subsidy removal in the last 30 days. This was disclosed in an interview with Daily Post by Chinedu Okonkwo, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN). That was a cheering news as that is the amount Group Managing Director of Nigeria National Petroleum Corporation Limited, Mele Kyari, claimed Nigeria spends on subsidy every month.
A socio-economic analyst, who spoke with The Boss of the basis of anonymity, informed that “most Nigerians, especially the market men and women are not interested in the bogus figures being paraded by the administration; they want to take a bus and pay affordable price, they want to go market buy food items without breaking the bank. Anything other than that, will mean an extension of the disastrous eight years of Buhari.”
With one month gone, the tangible things Nigerians have witnessed are the sack and arrest of Emefiele and Bawa; sack of service chiefs and their replacements.
“That is not an achievement,” the analyst said.
Nigerians are looking forward to better days ahead as the hardship bites harder.
Tinubu was inaugurated as the 16th Nigerian leader, on May 29, 2023, having defeated the duo of Atiku Abubakar of the PDP and Peter Obi of the LP with what observers noted as the smallest number of winning votes since 1999.
However, Atiku and Obi are in court challenging the emergence of Tinubu as president, praying the judiciary to ‘do the right thing’.
The 180 days judicial window for the litigation, which will terminate in October, will put paid to the contention of who won the election.
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