Dimakatso Leshoro
Economists are highlighting the growing disconnect between the government’s policies and the lived realities of the majority of Nigerians.
The Tinubu administration, which has faced sharp criticism from both opposition parties and experts, is under scrutiny for its economic strategies, which critics argue have disproportionately favoured the elite while leaving ordinary citizens to bear the brunt of rising costs and declining living standards.
Nigeria is Africa’s most populous nation, should, by its size and potential, be a leading economy on the continent. However, the country faces significant hurdles, including surging inflation, which now sits at a staggering 34.7%. This has impacted every sector of the economy, with the naira losing value, unemployment rising, and economic growth stagnating, indicators of what experts term “stagflation.”
In his New Year’s address, Tinubu promised to cut inflation to 15% by 2025, a target many economists have deemed unrealistic.
University of Ibadan Economics Professor Adeola Adenekinju pointed out that similar promises were made last year when inflation was around 30%. Instead of a decline, the rate climbed to its current levels, leaving many sceptical about the government’s ability to deliver on its commitments.
Food inflation has been a major driver of the crisis, with global geopolitical events exacerbating local challenges. The situation has worsened for millions of Nigerians, many of whom earn below the national minimum wage. Meanwhile, the removal of fuel subsidies has driven up transportation and food prices, further deepening financial strain for households.
Critics argue that the government has failed to provide basic services, such as reliable electricity and clean water, while the cost of petrol has made it a luxury item. Economist Shia Ibu Idris dismissed the president’s inflation target as “preposterous,” noting that effective economic policies take time to yield results.
The administration’s plans to introduce a National Credit Guarantee Company in 2024 have been met with cautious optimism. While the initiative aims to improve access to credit for businesses and individuals, similar schemes in the past have struggled with inefficiencies and limited success. Experts question whether this new effort will be any different.
Nigeria’s economic crisis has starkly divided the nation into haves and have-nots, with an estimated 150 million people, three-quarters of the population living below the poverty line. The middle class, once a stabilising force, has all but disappeared.
Idris also criticised the government’s fiscal policies, pointing out the lack of austerity measures to curb wasteful spending. While ordinary Nigerians grapple with the soaring cost of living, the government has been accused of prioritising luxuries such as yachts and new presidential jets.
“Nigerians are suffering,” said Idris. “More people are falling into poverty, but the government appears disconnected, unwilling to listen to alternative viewpoints or implement meaningful reforms.”
--ChannelAfrica--
