IN PRAISE OF THE TINUBU ADMINISTRATION 

The article ‘Nigeria Confronts Its Worst Economic Crisis in a Generation’ as published by the New York Times failed to explain the origin and efforts being made by the present administration to arrest the situation. It’s replete with negatives, and without even a scant mention of the successes from the present administration.

The paper’s position appeared as if the current administration caused the economic challenges, and or is doing nothing about it. But in any case the report fits into the tradition of foreign media reportage on Nigeria, nay Africa. Bad news sells copies!

To start with, when President Bola Tinubu came to power on May 29, 2023, he was confronted with very bad choices. There was no functional refinery. All refined petroleum products were imported as years of embarking on turnaround maintenance of the previous governments failed.

While the country was importing fuel, price volatility posed a big challenge. A rise in the dollar meant an increase in the price of fuel back home. Yet with low income, Nigerians would be expected to cough out more to buy petrol. Herein comes the subsidy, to bridge the gap so that the price of petroleum products could be available and affordable. 

Unfortunately, that came with its attendant problems: over invoicing with fraudulent officials who connived with importers to defraud the government. If the fraudulent practice was allowed to stay, it meant only a handful of Nigeria would continue to benefit. In order to stop the bleeding and ensure that the masses feel the impact of the government, the Bola Tinubu government took the path of courage and removed the subsidy.

Also, it embarked on a policy drive to clean up the multiple foreign exchange regime of the previous administration where an estimated $1.5 billion monthly was used to ‘defend’ the naira. The government took another bold step and floated the naira.

The government did so with the full knowledge that the citizens would face some initial hardship, but with time, the country would turn the table.

And rightly so, efforts are being made to cushion the biting effects. For instance, the government announced a N75 billion palliative package to strengthen the manufacturing sector and increase its capacity to expand and create good-paying jobs. Seventy-five firms will receive one billion naira repayable short and long-term loans. 

It quickly moved to empower micro, small and medium scale enterprises and the informal sector as the growth drivers with N125 billion.  That is N50 billion on Conditional Grant to one million nano businesses while N75 billion goes to MSMEs and start-ups.

The administration also earmarked N200 billion to support the cultivation of 500,000 hectares of farmland and all-year-round farming practice. Food production would lead to reduction in food inflation and bring down prices.

The government immediately planned to invest N100 billion to acquire 3,000 units of 20-seater CNG-fuelled buses to bring down high fares.

Also, the government provided an additional N35,000 to the “average worker’s” salary for six months. Besides, the president approved N25,000 as a new social safety net policy that will cover about 15 million Nigerians.It also extended the palliative measures to the states with the 36 states getting N185 billion palliative loan for distribution at the state and local government levels.

With the removal of subsidy, N1 trillion was saved between June and July 2023, which the government is reinvesting in the education sectors, and partly as  loans. Such savings from subsidies have continued.

The government is not resting on its oars, and has not failed to acknowledge the patience of Nigerians as they face the fallout of these policy initiatives.

Rather, it has tried to reward this patience with concerted efforts to cushion the policy impacts. That’s why the government unleashed 21 major policy blitz a few weeks ago to not only cushion the effects of these policy changes but provide lasting solutions to them.

 The president has said there will be no exemption in certain taxes for him and his Vice, Kashim Shettima, like paying access toll and parking levies at the nation’s airports. The government’s target is to raise N10bn from the airport tolls annually, which would be ploughed back into the economy.

With fresh investment in infrastructure such as the approved N2trn mortgage initiative, N51bn transport terminal hub in Abuja, jobs would be created and the economy is expected to expand. At the state level, the government has earmarked N546bn for roads in Lagos, Kwara, Edo, Kebbi and Sokoto while N72bn has been approved for the construction of a new transmission line, all to increase power output and enhance productivity.

These are lofty initiatives. These are not only immediate solutions or quick fixes, but long term targets having realised the difficulties it inherited.

The problems are deeply rooted but the administration has not wasted time passing the buck, rather it has adopted measures to fix them. And some of these measures would take time to bear fruits, while others are already bearing fruits.

Isuma Mark, Abuja