… As Buhari marks 1 year in office
By Amechi Ogbonna, Dennis Mernyi and Isaac Anumihe, Abuja
PRESIDENT Muhammadu Buhari is a dogged political fighter who came to power on May 29, 2015, on a change mantra. He had won the 2015 presidential election against incumbent President Goodluck Jonathan of the Peoples Democratic Party after three previous failed attempts at the Presidency.
His victory at last year’s polls was widely celebrated by millions of Nigerians who believed his decent public sector track record would spur him to deal speedily with the country’s hydra-headed socio-economic challenges.
However, one year down the line, hopes are waning among Nigerians and many are rhetorically asking the question, “is this the change we voted for?”
But from all indications, his economic blueprint in the last 12 months has confounded even the majority of his loyalists, who recently scored him low on several aspects of the economy. While campaigning last year ahead of the elections, for instance, Buhari had promised Nigerians an economy that works, and one where foreign exchange and refined petroleum products at least would be available to all Nigerians. But on the first anniversary of his Presidency, many are concerned the country appears to have retrogressed phenomenally on nearly all economic indices with most of his policies seemingly putting the economy on the reverse gear.
For instance, while unemployment has attained a very frightening dimension with more companies closing down in the last one year than at any other time, several other macroeconomic indices are also headed south contrary to expectations. It was during these past 12 months that power generation tumbled below what he inherited from Jonathan, leaving Nigerians in utter darkness, while inflation that had stabilised at single digit in the last five years suddenly began galloping into the double digit zone.
In the past 12 months of Buhari’s Presidency, cost of living for an average Nigerian in parts of the country has sky rocketed as nearly all key indices continued to deteriorate by the day.
Right from 2015 when he was sworn in, Nigerians have been confronted with acute fuel scarcity, irregular electricity supply in the midst of abject poverty and rising inflation rate. Nigeria’s once vibrant middle class is also going into extinction, because the business environment has turned sour.
In cities like Abuja, the Federal Capital Territory and the neighbouring states where majority of the people working in the city are resident, many are considering relocating back to their various villages where they can, at least, be able to feed and worry less about several necessities of life which other nations are enjoying freely.
The consideration here is that in villages, many can afford to live without electricity. Life can also not be as frustrating as it is in the city even without petrol or gas or power.
In the villages also, non-availability or high cost of kerosene may not be an issue to worry about with fire wood in abundance. For most Nigerians, the essence of living is fast being eroded in an economy that is consistently on the decline.
Mr. Mikah Adamson, a panel beater who lives in Nyanya’s Kugbo mechanic village in an interview with Daily Sun, said he was left only with one option, which is to relocate to his home town in Kwoi village in Kaduna State where he will not pay to feed.
“Things are really getting out of hand to live in Abuja. There is no fuel. There is no kerosene. The little you can see, the price is beyond your reach. You can’t afford it. Everyday prices of food keep increasing. There is no electricity. We live on generator, yet you get tired of looking for fuel, which sold at more than N250 per litre at the peak of the crisis.
The costs of foodstuffs in various markets have skyrocketed almost beyond the reach of both the middle and lower class living in the FCT, resulting in an upsurge in the rate of street and corporate begging within the city and neighbouring towns.
A visit to some of the local markets at the outskirts of Abuja where residents normally troop in droves to shop for raw foodstuffs few months ago shows the story is different today.
For instance, at Nyanya market, a 50kg bag of rice that was sold at N10,000 some months ago is now being sold between N15,000 and N16,000. A measure of beans is now sold between N400 and N500. 1 kilo of beef and chicken now sells between N1,500 and N2,000 respectively.
In the same vein, a basket measure of tomatoes at perishable and foodstuffs market in Mararaba near Abuja is now sold for N2,500 as against N500 or N700. A mudu of gari now goes between N500 and N700 depending on the quality.
But the situation appears to have worsened since the government announced the new fuel price of N145 per litre, two weeks ago. It was perhaps that announcement that raised transportation fare higher by almost 150 per cent as the shortest taxi route is charged between N500 and N1,000 depending on distance.
Lamenting the condition, some Abuja residents who spoke to Daily Sun, described the situation as the worst ever experienced in the city although they expressed hope that if they can take government promises serious, relief would be underway.
According to Sule Adaki, a trader who operates a supper store at Garki Model Market, “things are extremely expensive and even our regular customers are not coming to buy from us again. We don’t see them often as before; when we call they will tell us there is no money. Some will tell us they don’t have fuel.”
A housewife, Mrs. Yimah at Karu Market in Abuja who also spoke to Daily Sun lamented that before, when she went to the market with N5,000, she was able to buy enough foodstuffs that could feed the family for at least one week.
“Things are getting worse these days, particularly, since government increased price of fuel. When the price was still N86.50 per litre and there was scarcity, it was still better. But now, there is even no money again. Bus drivers said there is no fuel. When they get it, it is sold at high cost, so where we used to pay N100 per drop, they have increased it to N200.
“So, with only N5,000 today, I am only left with N4,600 outside the transport to and from the market to buy things, and that can’t feed my family,” she decried.
According to Alhaji Ganiyu Serki, a civil servant with the Lower Benue Development Agency, government should do something immediately to alleviate the sufferings of the masses before it loses their support.
“We are aware that the present government is making efforts to stabilise the economy but the hardship is too much. Some of the policies like fuel price increase, no salary in some states, high cost of items in the market including food, are signs of danger, and the earlier government does something, the better,” he stated.
Nigeria’s runaway inflation rate which has eroded workers’ purchasing power appears to be one of the dark sides of the Buhari administration, moreso, when it rode on the crest of alleviating poverty and providing succour for the helpless and the vulnerable.
On its first anniversary, inflation remained an economic monster that affects the poor directly and it has been on the rise since May 29, 2015 when he took over power.
For instance, in May 2015 (the month Buhari took over power), the inflation rate was 9.0 per cent while in June of the same year, the inflation rate rose to 9.2 per cent. Also in July 2015, it stagnated at 9.2 per cent. But in August of the same year, it shot up to 9.3 per cent. In October, it was 9.3 per cent while in November it went up to 9.4 per cent and in December it rose to 9.6 per cent.
However, in January this year, there was no appreciable increase in the rate as it remained at 9.6 per cent. But in February 2016, inflation galloped to an all time 11.4 per cent and in March and April of this year, inflation went up to 12.8 per cent and 13.7 per cent respectively.
The National Bureau of Statistics (NBS) said that food, petrol, kerosene, and even vegetables and electricity prices were highest. The hike in prices of these products has more devastating impacts on the poor than the rich.
In December last year, a bag of rice was sold for between N8,000 and N9,000 but by May this year, the same bag goes for between N18,000 and N19,000. Also, 400grams of Sunola tinned tomato was N200 early this year but today the same gram goes for N270. A gallon of Turkey vegetable oil, which used be N1,300 is now N1,800 while a carton of Spaghetti, which used to be N2,400 now goes for N3,100. The same way Ikg bag of Semovita (sachet) now sells for N300 as against its former price of N200. A bag of gari used to be N4,800 but now it is N7,000. Similarly, a 50kg bag of granulated sugar now goes for N9,600 away from its original price of N7,500. Virtually, prices of every other product have risen by the day including newspapers and sachet water (pure water) prices.
The last administration met a double digit inflation of 12.4 per cent, but it made a conscious and deliberate effort to reduce inflation to a single digit of 8.5 per cent knowing full well that inflation is a critical component of the economy.
Unfortunately, however, no effort has been made by the Muhammadu Buhari government to curb inflation. The naira exchange rate has also tumbled from about N160 to over N340 to the dollar under Buhari.
Meanwhile, a development economist, Mr. Odilim Enwegbara, rather than blame the government of the day, faulted the monetary policies of the Central Bank of Nigeria (CBN).
“I’m completely disappointed with the CBN’s monetary policies. That rather than continue to reduce Monetary Policy Rate (MPR) so as to help the Buhari administration’s goal of jumpstarting economic diversification and real sector-led investment in industrial and manufacturing activities to grow the economy and create the badly needed jobs, Emefiele’s CBN decided to further increase interest rates.
“If they say it’s because of increasing inflation rate, they should be asked if they are not aware that some countries have their inflation rates higher than their key interest rates (central bank rates), especially when the central bank’s MPR is focused on improving the economy.
“Even our so-called inflation rate that is produced by NBS is so lacking in credibility that in most cases are doctored figures done to favour the banking and financial sector.
“Turkey’s interest rate at 7.500 per cent against inflation rate of 8.78 per cent has interest rate lower than inflation rate. The same is Japan where in an effort to grow the economy by growing consumption has its interest rate at -0.100 per cent against its inflation rate at 0.000 per cent.
“The only way government can free the economy from this perennial sabotage is to reform CBN’s monetary policy stance in line with its overall economic growth and diversification agenda.”