Nigeria is facing an unprecedented economic crisis. A financial and economic crisis marked by a free fall of the naira and an alarming surge in the cost of living. This dire situation is pushing more and more people into poverty, more than ever before.
The official records from the National Bureau of Statistics (NBS) reveal a staggering 35. 41% food inflation rate. Unsurprisingly, the grim reality on the ground suggests that the true food inflation rate is even higher, surpassing 50%.
Drivers Of The Hardship
One of the primary factors contributing to the economic hardship in Nigeria is the drastic depreciation of the national currency, the naira. The free fall of the naira has far-reaching consequences, as it erodes the purchasing power of the citizens thus exacerbating their struggle for survival. This exchange rate volatility has disrupted businesses, increased production costs, and hampered all projections of economic growth. Businesses did not expect such a free fall and many are going under.
The skyrocketing cost of living in Nigeria has placed an unbearable burden on the suffering citizens of this once great Republic. Basic necessities such as food, housing, and healthcare have become increasingly unaffordable, pushing many households to the brink of poverty and extreme poverty. Before the recent hardship Nigeria had 133million living with multidimensional poverty in 2023 NBS report. It is feared that more Nigerians have joined the 133million in the last eight months administration of President Bola Ahmed Tinubu, who started his administration with the removal of fuel subsidy that also contributed to the high cost of goods, including foodstuffs in the country.
Families are forced to make difficult choices, often sacrificing essential needs to cope with the rising prices of goods and services. The economic downturn has resulted in a surge in poverty levels, with more Nigerians experiencing financial hardship than ever before. Many who were previously able to make ends meet now find themselves grappling with unemployment, reduced income, and a diminished standard of living. The vicious cycle of poverty is exacerbated as the gap between the rich and the poor widens daily. Indeed, this poverty surge is also a driver of youth crime and criminality.
The food inflation crisis is a critical aspect of Nigeria’s economic woes. This alarming trend has severe implications for food security, as a growing number of people now struggle to buy even the most basic food items. The hardships imposed by the economic crisis have far-reaching consequences for Nigerian society. Increased poverty rates can lead to social unrest, as citizens become frustrated with the government’s inability to address the fundamental issues affecting their daily lives. The strain on social services, healthcare, and education further compounds the challenges faced by the population. Many sections of the Nigerian society have been expressing their frustration over the hardship.
Lamentation Of Nigerians
It is now lamentations galore in Nigeria. From the clergy, to traditional rulers, from labour to organised business, the story is the same. The Catholic Bishops Conference of Nigeria (CBCN) in its recent release said that the current administration’s reform agenda has increased the hardship being faced by citizens. The president of the CBCN, Bishop Lucius Ugorji, made this declaration during his welcome speech on Sunday at the commencement of the 2024 First Plenary Assembly of the CBCN, held at the Catholic Secretariat of Nigeria Resource Centre in Durumi, Abuja. The bishop noted that inflation had rendered it challenging for the typical Nigerian to afford essential commodities, such as food items and medication.
Similarly, former vice president of the National Association of Nigerian Students (NANS), Timileyin Ayenuro, raised the alarm that Nigerians are facing hardship and begged President Bola Tinubu to be responsive to the people’s sufferings. Ayenuro, in a statement made available to newsmen in Akure, the Ondo State capital, criticized President Bola Tinubu for failing to fulfill his electioneering promises through his poor economic policies.
The Christian Association of Nigerians in the 19 Northern States and Abuja, recently expressed concern over the prevailing harsh economy, declaring that the suffering in the country is becoming unbearable to ordinary Nigerians. This was coming on the heels of similar concern raised by the Sultan of Sokoto, Alhaji Muhammadu Abubakar lll-led Jama’atu Nasril Islam that urged both federal and state governments to intervene in the prevailing economic hardship which had forced Nigerians into protests.
Also recently, angry youths and women took to the streets of Minna, the Niger State capital, and Kano to protest what they described as the rising cost of living in the country. Similar protests also erupted in Ondo State in the Southwestern part of the country. In Niger, a group of women reportedly blocked the ever-busy Minna-Bida Road at the famous Kpakungu Roundabout and called on the Tinubu administration to address the challenge of ‘hunger in the land.’
Also, the Northern CAN, in a statement released by its Secretary-General, Elder Sunday Oibe, in Kaduna, called on the Federal Government to, as a matter of urgency, step in and address the depressing economic and escalating security situation in the country. According to the organisation Secretary, the suffering in the country is becoming unbearable for ordinary Nigerians as the high cost of foodstuffs, transportation, goods, and services have made life difficult for many Nigerians.
Which Way Nigeria?
Like the late legendary musician Sunny Okosun asked in one of his popular songs “Which Way Nigeria?” How could we get ourselves out of this quagmire? What can those in charge do to rescue Nigerians from hunger and starvation?
The administration of President Tinubu must first restore confidence in the Nigerian economy to attract foreign investment, increase productivity and create jobs for our teeming school leavers and university graduates. The massive and unending divestment of multinationals out of Nigeria is happening because many international companies have lost confidence in the economy. For them to return, they must see evidence of policy turn around, not just rhetorics.
For those suggesting price control, price control is out of the question because such had been tried in the past and it rather worsened the economic landscape. Palliatives for the poor have been abused by the elite leading to the failure of all palliatives initiatives right from the Obasanjo Era till now. Rather, palliatives had only enriched bureaucrats and politicians.
The federal, state and local government must find a way to subsidize transport. This will to alleviate the hardship by lowering the cost of transportation of produce from farms to markets in urban centres. Anyone who knows can tell you that transport costs represent more than 50% of the cost of food in urban cities.
Recently, this newspaper reported that for the fourth time in 10 days, the CBN adjusted the exchange rate for Customs clearance of cargoes at the nation’s seaports to N1,444.56/$1. This year, the CBN has adjusted the import duty exchange rate four times in quick succession. The CBN and Customs are making these increases for clearance of cargo to generate revenue but at the expense of the masses who the importers transfer the charges to in form of higher cost of such imported goods thus raising inflation.
Government at all levels must also reduce their appetite for foreign goods. There is no doubt that the humongous amount of dollars wasted in the importation of SUVs for National Assembly lawmakers, the Presidency and the office of the First Lady among others are part of the reasons why there is pressure on the Naira.
These ludicrous expenses are drivers of inflation as they add no value to the Nigerian economy and its masses. The bottom line is that there must be drastic cuts in the cost of governance. The government cannot continue to ask Nigerians to tighten their belts, while those in power are daily chopping and feeding fat at the expense of the nation’s economy! To rebuild citizen confidence in the naira, the leaders must work the talk of austerity measures in truth and in spirit!
MAY NIGERIA REBOUND
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