Expectations are high that 2024 will be better than last year as Nigerians expect the new administration to deliver its campaign promises. Without doubt, 2023 was a very challenging year for Nigerians. The Central Bank of Nigeria’s naira redesign policy, which commenced before the 2023 elections, led to the scarcity of the national currency. The exercise elicited nationwide protests and shutdown of businesses, as banks could not disburse enough of the new naira notes after Nigerians had deposited the old naira notes in the banks.
Available statistics showed that about 36.96 per cent of Nigerian businesses laid off staff or reduced working hours to weather the storm. The report also stated that 76.09 per cent of respondents said their enterprises were affected by the naira shortage. During the 2023 elections, the expectations of Nigerians were so high that the exercise would be free and fair. For the first time in a long while, Nigerian youths showed a remarkable interest in who governed them, but, at the end of the day, very little changed from the familiar story.
However, one of the greatest takeaways of the 2023 elections was the entry of a third force – the Labour Party – to challenge the status quo. Peter Obi’s entry as presidential candidate of the Labour Party made the presidential election more unpredictable for the eventual winner, Bola Ahmed Tinubu, who was sworn in on May 29.
Unfortunately, the hurried announcement of the removal of fuel subsidy by the new President on the day of his inauguration led to a sharp spike in the prices of petroleum products, goods and services across the country. According to fuel subsidy removal data released by the National Bureau of Statistics (NBS) the average price of petrol in Nigeria increased by over 210 per cent, ranging from N550 to N750 per litre, depending on the region from an average price of N200 before June 1.
The removal of fuel subsidy led to rising inflation, which increased to the highest figure in 18 years, hitting 26.72 per cent in September, 27.3 per cent in October and 28.20 per cent in November 2023. It also weakened the naira, which moved from N736 per $1 in January to N1,300 per $1 in October 2023. It increased the cost of importation of goods and rise in poverty rate.
In addition to the unbearable cost of petrol and gas, incessant collapse of the national grid plunged the country into darkness intermittently, despite promises from the federal government to fix the power sector. The three national grid collapses affected businesses and productivity, as many small and medium enterprises could not afford to fuel their generators for longer hours as an alternative means of power.
As in the previous years, the country witnessed rise in insecurity and many Nigerians were killed in 2023, while over N5 billion ransom was demanded from 3,620 persons in 582 kidnap-related cases. In addition to the cost of petrol and transportation, the general insecurity led to the high food prices. Farmers in the North-Central zone and other parts of the country could not have access to their farms due to insecurity.
With the new reforms of the Tinubu administration, the economy has not fared any better. Nigerians are still experiencing the scarcity of the naira. Nigerians are still suffering from the effects of the fuel subsidy removal and the harmonization of the foreign exchange rates. President Tinubu disclosed that Nigeria had saved over N1 trillion in two months by scrapping petroleum subsidies and the unification of the foreign exchange rate; it has not improved the living conditions of Nigerians.
On December 1, Tinubu reintroduced the school feeding programme to address the challenges of out-of-school children, which was suspended by former President Muhammadu Buhari towards the end of his administration. The President also approved the N35,000 wage award to civil servants under his administration and signed the Students’ Loan Bill. The impacts of these programmes are yet to be felt
While it is too early to judge the Tinubu administration, we believe that the government should come up with pragmatic policies to address the needs of Nigerians. The government must tame the rising insecurity in the country. This is the time to consider the establishment of state and community policing systems.
Let the government reduce the inflation rate and high prices of food items. The unified foreign exchange regime should be reviewed to make it stable and predictable. With increase in tuition fees in the universities, the government should make it easier for students to get bursary or grants, instead of the ubiquitous student loan scheme.
The government must address the unbridled migration of Nigerian youths to foreign countries by creating more jobs for them. Government should adequately fund education as well as address the decay in the universities. The least Nigerians expect from this administration is good governance. Happy New Year to all Nigerians and our esteemed readers.