Critics argue that the administration’s policies disproportionately benefit the political elite, leaving the majority, many of whom earn below the minimum wage, struggling to make ends meet.
At the heart of Nigeria's woes is an inflation rate now at 34.7%, among the highest in decades. This has exacerbated a stagnating economy marked by low growth, rising unemployment, and a depreciating naira. Economists warn that the country is entrenched in stagflation—a dangerous mix of stagnant economic growth and soaring prices.
Tinubu recently pledged to cut inflation to 15% by 2025, a target met with widespread scepticism. Professor Adeola Adenikinju of the University of Ibadan remarked that similar promises in the past had failed to materialise.
“Last year, Tinubu promised inflation would drop to 20% by the end of 2024, but instead, it rose to 35%. Some inflationary pressures, particularly those driven by global food prices and geopolitical tensions, are beyond government control,” he said.
Nigeria’s working population bears the brunt of the crisis. With most citizens earning below the minimum wage, their purchasing power has been eroded further by high fuel prices following the removal of subsidies. Gasoline, once accessible, has become a luxury, leaving households under immense financial strain.
Economist Shuaibu Idris criticised the Tinubu's inflation target, calling it "preposterous."
Idris remarked, “Economic policies don’t yield results overnight. To expect inflation to drop so drastically within a year is unrealistic unless one possesses magical powers.”
He did, however, acknowledge the government’s proposed National Credit Guarantee Company as a potential positive step. Scheduled to begin operations this year, the scheme aims to support financial institutions and businesses by sharing risks.
Despite these initiatives, past credit guarantee schemes in Nigeria have struggled to deliver significant results, especially in agriculture and small enterprises. Adenikinju warned that systemic issues could hinder the effectiveness of the new programme.
Meanwhile, the disparity between the wealthy and the poor continues to widen. Approximately 150 million Nigerians live below the poverty line, with the middle class nearly obliterated. Public dissatisfaction has also grown over perceived government extravagance, including reports of spending on luxury items such as yachts and new presidential jets, without implementing austerity measures.
“There is a glaring disconnection between the president, his cabinet, and the citizens,” Idris observed.
“As Nigerians grapple with a crippling cost-of-living crisis, the government seems to prioritise its comfort over the needs of the people.”
Analysts believe that unless the government takes decisive action to address inflation and poverty, Nigeria risks deeper economic instability and social unrest.
--ChannelAfrica--
