Assessing President Tinubu’s First Month in Office

In this report, Sunday Ehigiator took a look at the series of policies signed into law by the newly elected President of Nigeria, Bola Ahmed Tinubu within his first five weeks of assuming office and its effect on Nigerians

Today, Monday, July 3, 2023, makes it exactly five weeks since President Bola Ahmed Tinubu was sworn in as the 16^th president of Nigeria.

Uneasy they say lies the head that wears the crown, and indeed the first few days have not been easy, especially because the new president had to delve headlong into the subsidy quagmire even as his lawyers continue to battle election petitions at the tribunal.

In the past weeks, President Tinubu has taken some far-reaching decisions that have generated mixed public reactions, positive, and negative, and as well as sent a clear message that it is no longer going to be business as usual in the leadership of the country.

In the space of five weeks, the new regime has announced the removal of petrol subsidy, with zero plans towards cushioning the ripple effect on the populace, suspended the CBN Governor, Godwin Emefiele, suspended the EFCC Chairman, Abdulrasheed Bawa, introduced student education loan policy, liberalised the foreign exchange rates, retired the former Inspector General of Police, Usman Baba, removed all service chiefs, appointed eight special advisers, new service chiefs among others. Below are briefs on Tinubu’s actions in the first five weeks.

Removal of Fuel Subsidy

In what many experts believed to be ill-timed, President Tinubu announced the end of the fuel subsidy era during his inaugural address on May 29, 2023.

A few hours after President Bola Tinubu made the announcement, petrol pump prices skyrocketed from N195/litre to over N500/litre in all states and the Federal Capital Territory.

Consequently, the huge spike in petrol prices has caused the prices of most goods and services to shoot up throughout the country, further lowering the disposable income for most Nigerians, not excluding the cost of transportation.

The privatisation of the power sector has done little to improve the electricity supply in the country, compelling Nigerians to rely on petrol-powered generators for their household and business electricity needs. Due to the epileptic power supply, Nigerians are heavily dependent on petrol to run their daily businesses and household necessities.

Over the years, analysts have clamoured for the removal of petrol subsidies, which had been costing the country trillions of naira annually, nevertheless, the populace has maintained the opposite opinion, because of the resultant impact on the economy, especially for those at the lowest part of the economic pyramid. Hence, a slight upward review of fuel prices often has ripple impacts on Nigerians.

In his inauguration speech, President Tinubu alluded to the fact that the removal of the petrol subsidy would impose an extra burden on citizens, he however claimed it would free up money for education, regular power supply, transport infrastructure, and healthcare.

“I admit that the decision will impose an extra burden on the masses of our people. I feel your pain.”

If any truth is to go by in the President’s first four weeks, among other things, the fuel subsidy removal has led to a huge increase in the cost of companies’ production, operating costs as well as the cost of doing business.

Asks Shettima-led NEC to find palliatives for subsidy

Following the announcement of removal of subsidy, in his meeting with the oil marketers, the president directed the National Economic Council (NEC) led by Vice President Kashim Shettima to device an approach and begin the process of working on interventions to mitigate the impact of subsidy removal on the Nigerians.

The NEC is to come up with palliative measures to aid Nigerians even as the nation transitions and adjusts to being without subsidy. However, it is five weeks now and the NEC is yet to come up with any palliative to ease the burden of the subsidy removal on the populace.

Removal of Godwin Emefiele as CBN Governor

In an unexpected move on the night of Friday, June 9, President Tinubu suspended the Governor of the Central Bank, Godwin Emefiele.

In a statement credited to the Director of Information at the Office of the Secretary to the Government of the Federation SGF, Emefiele’s suspension was “sequel to the ongoing investigation of his office and the planned reforms in the financial sector of the economy.”

Aside from speculations that his suspension may be a political witch-hunt for the role he played in the buildup to the 2023 general elections, since Emefiele’s tenure as CBN governor ends in June, it came as a surprising move to see him suspended the same month he was bided for retire.

Nevertheless, under Emefiele the CBN had been co-opted by Buhari’s administration and lent more than $50 billion to the central government.

Forex Market Liberalisation

Not long after the subsidy move, suspended central bank governor Godwin Emefiele, President Tinubu, through the CBN liberalized the foreign exchange market to have a parallel rate.

The central bank abandoned its longstanding policy of tightly controlling the foreign exchange market to artificially prop up the value of the naira currency against the US dollar.

The bank replaced that policy with market-determined rates and eliminated the several exchange rate ‘windows’ that created a multi-tier system for those seeking hard currency.

In response, the official naira exchange rate plunged to its lowest level on record, moving it closer into line with the black market rate that most Nigerians have long had to accept.

Many analysts believe President Bola Tinubu’s bold actions, including removing restrictions on the naira currency that allowed it to hit a record 790 to the dollar and subsidy removals that tripled petrol prices, could take the stress off the battered finances of Africa’s largest economy.

But investors, burned by previous reforms that ultimately proved hollow, say it will take time to build trust and listed myriad questions over the final shape of the economy.

The tangle of multiple exchange rates for everything from international school fees to food imports created foreign currency shortages and hobbled investment due to issues getting money out.

“Just the fact that you have seen quite a bit of movement in a relatively short space of time has gotten a lot of people in the market excited,” said Goldman Sachs economist Andrew Matheny. All these questions would surely be answered through happenings in the coming days.

Equities Rebound

Nigeria equities were put back on the radar of badly scarred investors by Tinubu’s market-friendly moves: Fuel subsidy cut, CBN governor removal, FX rates harmonisation, and electricity deregulation.

This created investor optimism and confidence in his administration’s economic policies and reforms. This development led to an increase in market capitalisation on Tuesday, May 30, by 5.22 per cent, rising to N30.3 trillion compared to N28.844 trillion posted on the previous trading day.

Furthermore, the All-Share Index increased by 2,764.47 points or 5.22 per cent, settling at 55,738.35 as opposed to 52,973.88 recorded in the previous trading session.

Consequently, the year-to-date gain moderated to 8.76 per cent. This development has set an encouraging tone for the country’s economic outlook under the leadership of Tinubu.

According to data from Statista, a data company, Tinubu’s first day in office stock performance of 5.22 per cent surpassed the growth seen during the first day of the previous administrations since Nigeria’s return to democracy in 1999.

Suspension of EFCC Chairman, Abdulrasheed Bawa

On June 14, 2023, President Tinubu suspended the Chairman of the Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa.

Bawa’s suspension, according to a statement by the Director, Information, SGF Office, Willie Basse, is to allow for proper investigation into his conduct while in office.

The statement reads, “This follows weighty allegations of abuse of office levelled against him.

“Mr Bawa has been directed to immediately hand over the affairs of his office to the Director, Operations in the Commission, who will oversee the affairs of the Office of the Chairman of the Commission pending the conclusion of the investigation.”

Bawa’s invitation and grilling by the DSS came days after Emefiele was arrested and flown from Lagos to Abuja to also face interrogations over alleged corruption and abuse of office.

The Student Loan Bill

On Monday, June 12, President Bola Tinubu signed into law the Student Loan Bill in fulfilment of a promise he made during his campaign.

Spokesperson to the Federal Government, Dele Alake, in his announcement said, the funds will be domiciled in the Ministry of Education and will only be accessed by indigent students of tertiary institutions.

The student loan bill sponsored by the Speaker of the 9th House of Representatives, Femi Gbajabiamila, which provides for interest-free loans to indigent Nigerian students, passed the third reading at the House.

The law is to provide easy access to higher education for indigent Nigerians through interest-free loans from the Nigerian Education Loan Fund.

There are indications, however, that the newly signed act might not get the support of key stakeholders in the education sector, including the Academic Staff Union of Universities (ASUU).

In its submission, ASUU called on President Bola Tinubu to change the loan to a grant for indigent students, insisting that the loan is “impracticable and unsustainable”.

The union said the conditions for the loan are not practicable, adding that more than 90 per cent of students won’t meet the stringent requirements to access and repay the loan.

Speaking further, the national president of ASUU, Prof. Emmanuel Osodeke, said: “It would have been better if we were giving it to those students who are very poor; it should be called a grant, not a loan.”

According to him, with more than one million students in Nigerian public universities, the loan cannot adequately cater for their tuition.

Osodeke said: “The idea of student loans came in 1972, and it was in a bank that was established. People who took loans never paid; you can go and investigate. In 1993 and 1994, the military enacted Decree 50 and also set up a Students’ Loan Board. The National Assembly domesticated it in 2004, and within a year, it went off. The money disappeared. We want to see how this one will be different.”

Signed 2023 Electricity Bill into Law

The 2023 Electricity Act which is expected to de-monopolise electricity generation, transmission and distribution at the national level was also signed into law by the president within the period under review.

In signing the electricity bill into law, Tinubu has now empowered state governments, companies and individuals to generate, distribute and transmit electricity.

40% Increase in Electricity Tariff

While Nigerians are still trying to cope with the effect of subsidy removal on petrol, they may need to brace up for tougher times as electricity tariff is set to increase by over 40 per cent by July 1, a development which may eventually end all forms of energy subsidy in the country.

With a monthly subsidy of about N50 billion still in the electricity sector owing to revenue shortfall, the tariff hike may be another acid test for President Tinubu’s administration’s market reform.

The administration has already removed subsidies on Premium Motor Spirit (PMS) and floated the naira, decisions that have complicated the price-setting of the Nigerian Electricity Regulatory Commission (NERC) 2022 Multi-Year Tariff Order (MYTO).

With all these changes and new policies, it is therefore important at this juncture to feel the pulse of the common citizens who bears the brunt of these policies the most.

Assented to Bill on New Retirement Age for Judicial Officers

Similarly, President Tinubu in exercising the powers vested in him under the 1999 Constitution as amended, assented to a fresh amendment of the Constitution of the Federal Republic of Nigeria.

He signed into law the “Constitution of the Federal Republic of Nigeria, 1999 (Fifth Alteration) (No.37), 2023” presented by the outgoing 9th National Assembly.

With the signing of the Constitutional amendment Bill, retirement age and pension rights of judicial officers have been effectively brought into uniformity and other related matters.

According to president’s spokesman, Abiodun Oladunjoye, while signing the amendment Bill into law, Tinubu pledged his administration’s dedication to strengthening the judiciary, ensuring the rule of law, and empowering judicial officers to execute their responsibilities effectively.

Retirement and Replacement of Service Chiefs

On June 19, President Tinubu approved the immediate retirement of all Service Chiefs and the Inspector-General of Police, advisers, and Comptroller-General of Customs from service as well as their replacements with immediate effect.

Also affected are the Advisers, and the Comptroller-General of the Nigerian Customs Service. Their replacements have been announced.

In a statement on Monday by the Director of Information, Office of the Secretary to the Government of the Federation, Willie Bassey, it informed that Nuhu Ribadu who only last week was appointed as the Security Adviser to the President has now been appointed as the National Security Adviser.

Also, former Theatre Commander, Operation Hadin Kai, Major General Christopher Musa, would replace General Lucky Irabor as the Chief of Defence Staff.

Similarly, Major General T.A Lagbaja replaced Lieutenant General Farouk Yahaya as the Chief of Army Staff, while Rear Admiral E.A Ogalla has been appointed to take over from Vice Admiral Awwal Gambo as the Chief of Naval Staff and Air Marshal Oludayo Amao would be replaced by Air Vice Marshal H.B Abubakar as the Chief of Air Staff.

Others appointed are DIG Kayode Egbetokun as the Acting Inspector-General of Police and Major General EPA Undiandeye as the Chief of Defence Intelligence.

The President also approved the appointment of Col. Adebisi Onasanya as the Brigade of Guards Commander; Lt. Col. Moshood Abiodun Yusuf, the 7 Guards Battalion, Asokoro, Abuja; Lt. Col. Auwalu Baba Inuwa, 177, Guards Battalion, Keffi, Nasarawa State; Lt. Col. Mohammed J. Abdulkarim 102 Guards Battalion, Suleja, Niger and Lt. Col. Olumide A. Akingbesote 176 Guards Battalion, Gwagwalada, Abuja.

Similarly, President Tinubu approved the appointments of other military officers in the Presidential Villa.

They are Maj. Isa Farouk Audu (N/14695) Commanding Officer State House Artillery; Capt. Kazeem Olalekan Sunmonu (N/16183) Second-in-Command, State House Artillery; Maj. Kamaru Koyejo Hamzat (N/14656) Commanding Officer, State House Military Intelligence; Maj. TS Adeola (N/12860) Commanding Officer, State House Armament, and Lt. A. Aminu (N/18578) Second-in- Command, State House Armament.

In the same vein, Adeniyi Adewale has been appointed as the Acting Comptroller General of Customs.

The President has also approved the appointments of two additional Special Advisers, and two Senior Assistants, namely: Hadiza Bala Usman Special Adviser, Policy Coordination; Hannatu Musa Musawa Special Adviser, Culture and Entertainment Economy; Sen. Abdullahi Abubakar Gumel, Senior Special Assistant, National Assembly Matters (Senate) and Hon. (Barr) Olarewaju Kunle Ibrahim, Senior Special Assistant, National Assembly Matters (House of Representatives)” the statement added.

However, Bassey stressed that the appointed Service Chiefs, the Inspector-General of Police and the Comptroller General of Customs are to act in their positions, pending their confirmation by the Constitution of the Federal Republic of Nigeria.

Appoints Gbajabiamila as Chief of Staff

Appointing former Speaker of House of Representatives, Rt. Hon. Femi Gbajabiamila as Chief of Staff, was another major move by the president.

In a meeting with progressive governors, the president also appointed Sen. Ibrahim Hassan Hadejia, a former Deputy Governor of Jigawa State, as Deputy Chief of Staff.

This move many saw as a very strategic one that sets the tone for what his cabinet will look like and the caliber of persons Tinubu will be working with to set Nigeria back on track.

Appoints Akume SGF

In a similar fashion, the president appointed Senator George Akume to serve as Secretary to the Government of the Federation.

Speaking on this development, the president said Akume will serve the nation tremendously in his new capacity as Secretary to the Government of the Federation (SGF).

Introduces N1,000 Annual Fee for Motorists’ Proof of Ownership

The Federal Government within the period in view has also introduced a new initiative requiring all motorists to pay an annual fee of N1,000 for the Proof of Ownership Certificate (POC) verification.

The move is aimed at streamlining and strengthening vehicle ownership verification. Beginning from July 2023, the collection of this fee will be initiated by the Lagos State government.

During a joint press conference in Ikeja, Lagos, the Permanent Secretary of the Lagos Ministry of Transportation, Engr. Abdulhafiz Toriola announced the implementation of the initiative.

Its purpose is to ensure compliance with the legal requirement outlined in the National Road Traffic Regulation 2012, as amended, No. 101, Vol. 99, Section 73-(1), which states that “There shall be Proof of Ownership Certificate for all registered Vehicles.” Additionally, Section 73-(1-6) mandates the establishment and maintenance of a Central Database for Vehicles and drivers across the federation.

Toriola emphasised that the decision aims to track the real-time status and maintain the integrity of all vehicles registered on the National Vehicle and Identification Scheme (NVIS) database.

“To this end, the Federal Government has introduced the issuance of annual Proof of Ownership Certificate for all registered vehicles. This certificate will serve as official documentation of a vehicle’s legal owners upon successful completion of the necessary requirements and procedures.

“The POC will contain vital information including the vehicle’s registration details, such as, license number plate, model, year of manufacture in addition to owner’s name and address.”

This has definitely generated a lot of outcry among the populace especially now that they are still struggling to cope with the hardship induced by the removal of subsidy, which transcends to increment in the cost of living among others.

Quotes

While signing the amendment Bill into law, Tinubu pledged his administration’s dedication to strengthening the judiciary, ensuring the rule of law, and empowering judicial officers to execute their responsibilities effectively