By Ahmed Ghani Hassan
My friend Musty Malami asks me two things: first, is Nigeria developing economically under Tunibu, or is it stagnating? He also asks me what my projections are for the Tinubu administration’s future in terms of economic development. With hesitation, I responded to his questions by outlining the primary issue and its root causes. It is evident to all Nigerians that the president removed the oil and dollar subsidies without first preparing a buffer to lessen the impact of the removal of the subsidies, which left the nation in extreme poverty and hardship in this situation Many small scales businesses are currently collapsing, the value of the Naira is always declining. How can the Naira increase in value when our exports are dependent only on crude oil.
Everything is falling apart in less than six months. Can you imagine trying to build an economy without bragging about your exports when the government permits imports of more than 70% of the goods used in the nation? The current administration’s economic policies neither stimulate the economy nor advance economic development. The galloping inflation figures, which increased to 28% according to the most recent National Bureau of Statistics (NBS) report, and the continuously declining value of the Naira relative to the US dollar are evidence of the impact of these policies. The people have suffered more as a result of this devaluation of currency.
The Tunibu administration’s tagline of “renewed hope” has left the majority of Nigerians believing that it is merely a promise, and they have lost hope in it due to the difficulties the government has placed ordinary Nigerians in without knowing for how long this will give good impact to the economy. The palliatives which will cussion the effect of the removal of the subsidy allocated to the law makers which is Indicated that an average Nigeria could not have access to it if he doesn’t know any one. Indeed, I will rate the government as failed State, no doubt Nigerians are highly disappointed by the incumbent government. The economy is now weaker than before, and the policy has caused serious problems to the people.
Now, the food crisis is worse, which is sweeping the nation like a wildfire and driving many to resort to begging in order to simply have a meal. This poses a serious threat to national security because, in the event that people are unable to provide for their families, they may resort to criminal activity in order to survive. New policies that can address and solve this issue should be introduced. Another challenge and threat to the nation is climate change, as seen by the fact that this year rain has caused many farmers to lose food stuff. A food crisis is predicted if you consider the enormous loss of food production, where one rice is valued at more than 1000 per one measure. Therefore the government should make a great emphasis to the irrigation farming, because my projection is that in June this year it could be worst in food crisis and I urge the government to quickly address the situation before it degenerates further.
Enhancing industrial export could pave the way for recovery and growth, which would in turn stabilize the currency. Therefore, I think the government should prioritize production over mere speculation if it wants to develop the nation and lessen hardship. This is because currency devaluation encourages more speculative activity than productive activity. In order to address the issue of climate change, improve farming practices, lower taxes and VAT, control inflation by enforcing price controls through the marketing board, and encourage innovation and productivity in our youth, and the government should place a greater emphasis on agriculture.
ahmedghanihassan@gmail.com
