TINUBU’S ECONOMIC REFORMS IN NIGERIA: ASSESSING GAINERS AND LOSERS: PAPER PRESENTED BY THE PRESIDENT OF THE NIGERIA LABOUR CONGRESS (NLC); COMRADE JOE AJAERO AT THE 21ST DAILY TRUST DIALOGUE HELD ON THE 25TH DAY OF JANUARY, 2024 IN ABUJA.
Introduction:
Reforms of any kind comes with the acceptance that the existing order has become
ineffective and inefficient thus needs to be rejigged for greater performance. It is this acceptance that creates the urgency for a reform. In any case, reforms are expected to produce better results or outcomes for the people if not, it becomes a deformation.
Protocols!
When Policies come with the toga of reformation, it immediately adorns the garb of the pristine, creating the belief that it is geared towards generating better structures and platforms for social progress. Tagging all policies as reformatory can therefore be deceptive at times meaning that it is our responsibility to query and interrogate such arrogations from time to time.
Whether we can therefore call Tinubu’s Economic policies reforms or deforms is completely dependent on the outcomes or impact of such policies on the people. For example, do the people have greater access to food and nutrition; decent Housing, quality health care or in general has the quality of life of the citizenry improved both in the short, medium and in the long term or has it stagnated or worsened? Those are some of the indices that will define how we can classify such policies.
Tinubu administration, driven by neoliberal principles as dictated to it by its two chief priests or do we call them the twin altars – the World Bank and the International Monetary Fund (IMF) embarked on a series of economic reforms upon assuming office in May 2023. These reforms were ostensibly designed to address perceived fiscal challenges and promote economic sustainability. However, the policies implemented have been met with mixed reactions, with both positive and negative consequences for different segments of the population.
Important to state is the fact that the key policy of the hasty hike in the price of Petrol does not fit into the procedure for carrying out a reform especially when we expect such reforms to have serious positive impact on the economy. We would therefore examine some of the identified actions that this government has taken to see whether there is a pattern or a coherence that points to specific directions as to the results that are intended and whether these policies are capable of taking Nigerians to the stated destinations.
We will make haste to immediately state that what has been implemented as policies thus far are not new to Nigeria Economic gerrymandering. They have all been tried severally in the past with the same result which most of us here have experienced. If we are therefore expecting a different result from what we have experienced before, we fall into the fabled trap of doing the same thing, the same way over and over and expect a different result. What is it that they call it again?
In any case, in the surreal landscape of a nation grappling with escalating insecurity, discussing the intricacies of a government’s economic policies seems akin to debating the color of curtains in a burning house. The pervasive threat of massive kidnappings, abductions, and banditry casts an ominous shadow over the very fabric of society, rendering economic discourse almost absurd in the face of urgent and life-threatening crises. While economic stability is undoubtedly a crucial aspect of governance, the stark reality of citizens living in constant fear, with lives upended by the heinous acts of criminals, demands immediate attention and action. Who will invest in such environment except looters and plunderers?
In such a climate, the absurdity lies in the stark disconnect between bureaucratic discussions on fiscal policies and the visceral, pressing needs of a populace caught in the crossfire of insecurity. Citizens find themselves torn between the hypothetical benefits of economic strategies and the tangible, immediate threats to their safety and well-being. The urgency of addressing the security crisis becomes a stark reminder that, in the hierarchy of priorities, the protection of life and liberty takes precedence over economic debates, challenging the very essence of governance in times of profound adversity.
Whether there is a coherent Economic strategy by the present administration to deal with the challenges confronting our nation given the absence of a discernible Economic Blueprint is another question altogether. It may therefore be stretching it a bit too far if we categorize such decisions taken in silos as reformatory without the required coherence and structures including stated plausible destinations.
KEY POLICY DECISIONS:
Some of this administration’s key economic decisions since inauguration could be summed up in the following:
- Hike in the Price of Petrol
- Devaluation of the Naira
- Freeing the Foreign Exchange Market to merge all the windows
- Fiscal Expansion
- Increasing the Debt Stock through more borrowings
These are some of the policies that encapsulates what this Government has done in the past Nine months in office. When we therefore examine them one after the other, its consequences on Nigerians especially workers, pensioners, masses and the economy itself would have become clear for all to see.
Hiking Petrol Prices and Eliminating Subsidy:
One of the controversial measures undertaken by the Tinubu administration was the hike in the price of petrol in the guise of the elimination of subsidy on Premium Motor Spirit (PMS). The purported aim was to reduce government spending and redirect resources to other critical sectors. What are the immediate and long-term effects of these measures on the economy, inflation rates, and the cost of living.
We do not want to argue with this government concerning the fiscal state of the economy or the size of the treasury that they met on assumption of office. If the treasury was emptied, we want to know what the government has done about those who emptied it or what it intends to do concerning them. We would also want to remind the government of its position on the treasury and the Economy during the political campaigns. They told Nigerians that our Treasury and the Economy were in the best position they have ever been so, we can ask a simple question; were they lying then or now?
Our independent investigation supports our earlier assertions. Government was not spending anything from its coffers to provide PMS to Nigerians. The truth was that the Government was not getting the kind of profit it wanted from exercising monopoly over the importation of PMS into Nigeria. That is the one it calls under recovery. It is recovering cost but not recovering as much profit as it wants.
What it does mean is that the policy was not based on the truth. Nigerians were lied to and any Policy that is not based on the truth is built on the wrong foundation therefore fails the test of integrity and will suffer validity thus the buy-in of majority of Nigerians.
We therefore got ourselves to where we are as a nation that is still importing petroleum refined products despite having four publicly owned refineries and others that are privately owned. You therefore ask yourself, how did we come to this sorry pass? Why have they refused to allow the refineries work? Who are those sabotaging the refineries thus our economy? Why is it difficult for the government to repair or refurbish its own refineries?
The truth is that when you find out those who are benefitting from the shutdown of our refineries, you will find out those who are benefitting from the grievous distortions in the downstream sector of the Oil and Gas industry in Nigeria. Let us ask ourselves what is subsidy and whether it is a crime as has been painted by various Governments.
WHAT IS SUBSIDY?
A subsidy is a financial aid or support extended to an economic sector (such as agriculture, manufacturing, or energy production) or to individuals, typically by the government. The primary purpose of a subsidy is to encourage the production or consumption of a particular product or service by lowering the overall cost for producers or consumers.
Subsidies can take various forms, including direct cash payments, tax breaks, reduced interest rates on loans, price supports, and more. Governments often use subsidies to achieve specific policy goals, such as promoting economic development, ensuring food security, fostering innovation, or addressing social and environmental concerns.
While subsidies can have positive effects, such as stimulating economic growth and supporting vulnerable industries, they can also lead to inefficiencies and market distortions. Critics argue that poorly targeted or excessive subsidies may result in wasteful spending, market inefficiencies, and unfair competition. As a result, debates often surround the appropriate use and design of subsidies in economic policy. Subsidies can be targeted for the benefit of producers or consumers.
The basic effect of subsidy in whatever form it is used is that it reduces the overall market price of the targeted commodity in this case PMS. In essence, PMS was being made available to Nigerians at less than the price Nigerians would have paid if there was no subsidy on the product as presumed by government.
The question then arises, does the existence of subsidy on PMS entail a cost on the government or any other subsidizing authority? The answer is NO. The reason being that some may read the fact that as long as Government is recovering its costs, there is no subsidy while others may insist that as long as the Government is selling below expected price, then, there is subsidy.
The above are some of the counter arguments especially when it is applied to the Nigerian situation. When the Cost Benefit Analysis is conducted around this issue it opens a wide corridor for debates as to whether the benefits of retaining the so-called subsidy does not far outweigh the monetary gains from matching a presumed market price? Must the welfare of Nigerians be sacrificed on the altar of the Market especially when the dictates of the market still allow some measures of profit?
THE HISTORY OF PETROLEUM PRODUCT PRICE HIKE IN NIGERIA
Increases in the price of petroleum products did not start today in Nigeria. All of them have always been couched as Petroleum subsidy withdrawal perhaps because it may sound more benign than using the word – price increase. However, its recent trend has changed its dynamics making it markedly different from when it started in the late 1970s.
It is important that we take a snapshot of the various price increases of petrol over the years;
Gowon – from 6k to 8.45k
Murtala Murtala – from 8.45k to 9k
Obasanjo – from 9k to 15.3k
Shagari – from 15.3k to 20k
Buhari – from 20k to 20k (Price remains the same)
Babangida – from 20k to 39.5k
Babangida – from 39.5k to 42k
Babangida – from 42k to 60k (Private Vehicles)
Babangida – from 60k to 70k
Shonekan – from 70k to N5 (Naira)
Abacha – from N5 to N3.25k (Price drops)
Abacha – from N3.25k to N15
Abacha – from N15 to N11 (Price drops)
Abubakar – from N11 to N25
Abubakar – from N25 to N20 (Price drops)
Obasanjo – from N20 to N30
Obasanjo – from N30 to N22 (Price drops)
Obasanjo – from N22 to N26
Obasanjo – from N26 to N42
Obasanjo – from N42 to N50
Obasanjo – from N50 to N65
Obasanjo – from N65 to N75
Yar’Adua – from N75 to N65 (Price drops)
Jonathan – (New year present) N141
Jonathan – (After labor strike) N97
Jonathan – (As Feb, 2015 Election approaches) N87
Buhari – from N87 to N165 then to N187
Tinubu – from N187 to N587/N630 (Subsidy is gone statement)
In increasing these prices, all of these governments beginning with Obasanjo have told Nigerians that they were withdrawing the subsidy on Petroleum products. The fact then remains, what are they still withdrawing if the previous governments have already withdrawn the remaining subsidy on the products? Is subsidy a cat with nine lives that refuses to die?
RATIONALE BEHIND SUBSIDY REMOVAL
Here, we want to look briefly at some of the reasons the government has given Nigerians for the increases in the prices of Petroleum products over the years. It is important to state that the reasons have largely remained the same right from inception and the deception almost always the same. It is therefore funny that Government may have been too lazy to invent other reasons for plunging Nigerians into suffering periodically when a simple solution is available to resolve the contradiction.
- Government told us that the nation is fiscally insufficient because they met empty treasury
- Needed to free more funds to finance infrastructure provision
- The rich were the ones benefiting from the subsidy so, the need to remove it and re-invest funds in areas that would benefit the poor
- To make the sector more efficient thus encourage private sector investment in the Downstream sector
- To deregulate, allow for greater competition and discourage corruption or rent-seeking
- To discourage cross – border smuggling of the products thus increase availability
A cursory look will tell us whether these reasons and objectives have been achieved to a significant extent. The answer is largely no. Our Economy and indeed our fiscal situation seems to be worsened historically when we tamper with the price of petroleum products. This has largely been our history and the recent May 29th gift follows the same trajectory though in a worsened dimension.
The government’s decision to withdraw petroleum subsidy is often justified by the need to address fiscal challenges, reduce public spending, and redirect resources to critical sectors such as healthcare and infrastructure. Proponents argue that subsidy removal fosters economic efficiency and discourages corruption in the downstream oil sector. We were told that as soon as the subsidy is withdrawn, all our problems will be resolved. Whether this has happened 7 months down the line is a different thing.
The simple solution is to refine all our needed products here at home but will vested interests allow this to happen? Your answer is as good as mine! It is simply silly economics having a pricing template that is import driven for a sensitive product like PMS and be pretending to be running an economy sensibly.
What are the Implications of the Hike in the Price of PMS?
We can then safely list the economic impact of subsidy withdrawal as;
Inflationary Pressures: The abrupt removal of subsidy and increase in PMS prices has a cascading effect on the prices of goods and services, leading to inflationary pressures. This disproportionately affects the purchasing power of the masses, particularly those with fixed incomes who are mainly workers and pensioners and exacerbate economic inequalities.
Transportation Costs: As PMS prices soar, transportation costs escalate, impacting the cost of living for ordinary citizens. This, in turn, amplifies the challenges faced by workers and their families in meeting basic needs.
Cost of Living: As the prices of essential goods and services rise due to increased transportation costs, the cost of living for the average Nigerian worker and Nigerians is likely to spike, necessitating interventions from trade unions to safeguard the welfare of their members and their larger constituency.
Business Operations: Industries heavily reliant on transportation and energy may face increased operational costs, potentially leading to downsizing and job losses. Trade unions must anticipate and address the potential consequences for their members in these affected sectors.
Increasing Inventories and Business shutdowns: The reality is that as businesses face increasing costs of production, they try to pass it down to consumers via increasing prices as described above. The consequence is a passive resistance by consumers whose purchasing powers have stagnated as real wages are eroded. The quantity of unsold items increases as inventories accumulate, manufacturers are forced to scale down on production, reducing revenue inflow and forcing them to default on loan repayments and other financial obligations particularly to suppliers and contractors. Businesses are shut down and the economy suffers de-manufacturing.
Depreciation in the Value of the Naira: Researches over the years have established
causal relationship between inflation and Exchange rate positions in any country.
That relationship is inversely proportional meaning that as the inflation rate increases,
the value of the local currency depreciates while the converse is the case. We have
seen the movement of the value of the Naira downwards since May 29, 2023 from about N520/$ in the parallel market to where it stands today around N1300/$ while it has notched close to around N931/$ in the official market.
The fact is that inflation weakens the value of every domestic currency and as this happens, since we are still importing refined products, the fabled landing cost is pushed upwards then another lust for further PMS price hike is generated. This unleashes an unending cyclical that can only be broken if we are not importing refined products.
Growing Unemployment: When factories are shutdown as a result of increasing
production cost and increasing inventory, job losses increase and the ability of the
existing businesses to absorb new entrants into the labour market becomes highly
constrained. The implication of this to the economy is that increasing number of
people are left out of employment with its attendant consequences on the economy.
The Manufacturers Association of Nigeria (MAN), the Nigeria Employers Consultative
Association (NECA) and Nigeria Chamber of Commerce and Industries have all cried
out on the difficulties the new pricing regime of petrol has inflicted on their sector.
Many businesses have been shut down and many more are planning to leave as a
result of the increasing hostile operating environment for businesses in Nigeria
Naira Devaluation:
The decision to devalue the Naira was another pivotal move in Tinubu’s economic agenda. The impact of Naira devaluation on trade, foreign exchange reserves, and the competitiveness of the Nigerian economy is well known. Its implications for both importers, exporters and generally on inflation has been well assessed showing that it is not a positive strategy for an economy that is structurally weak and heavily import dependent for both raw material inputs and finished products.
For a country that is heavily dependent on foreign inputs for local production, that
spells disaster. This high coefficient of imports in domestic manufacturing makes
domestically produced goods uncompetitive both internally and externally denying the
nation the benefits of devaluation. A country can only benefit from a depreciating
currency if it has a strong domestic manufacturing capacity that is endogenous and is
able to respond correspondingly to the increasing demands for its products that have
now become cheaper in the international market. Economics teaches us that
devaluation becomes useful when a country has an elasticity of exports that is >1.
Presently, there is a run by neighboring countries on Nigerian food because of the weakness of the Naira creating serious food challenges for the poor in Nigeria. We believe that the only reason why Government seems to favour devaluation as a tool is because of the hair-brained advice of the Bretton-wood institutions that it will help it raise Naira to plug the fiscal hole.
Expansion of Foreign Exchange Allocation:
Expanding the list of items eligible for foreign exchange allocation in the official window of the foreign exchange market aimed to encourage investments and boost economic growth. Scrutinizing the effectiveness of this strategy, examining its impact on local industries, foreign investors, and the overall balance of trade shows that it also added to put greater pressure on the Naira leading to greater capital flight.
Seeking to Privatize and Concession Remaining Public Assets:
We have heard several noises and whisperings about unbundling, privatization and no going back on concessioning here and there. To us, these are all planks upon which the preachment of neoliberalism are foisted. We cannot pretend not to know that largely most of the privatized entities in Nigeria have either gone under or are comatose and at best stripped and no longer operating as originally intended. These fresh attempts will yield the same results as the other ones before it and so, are we as a nation prepared to suffer the consequences?
The CBN Engineered Cash Crunch:
The cash scarcity ought to be included in the potpourri of this Government’s economic policies which may be designed as part of its monetary tools to control cash availability thus manage inflation. However, the government has denied this as a deliberate policy but we are left with its existence and are feeling its impact on business activities and other socioeconomic activities in the country. How we feel about its consequences on all of us is left for us to decipher but it is unacceptable that citizens after working so hard to earn an income will be compelled to part with a portion of it to gain access to the same income. That is most cruel and extortionist in nature.
WHO ARE THE GAINERS AND WHO ARE THE LOSERS?
The economic policies implemented by the Tinubu government have had far-reaching consequences on the standard of living, particularly for workers, the vulnerable, and those with fixed incomes. We will try to delve into the socioeconomic implications of these policies, exploring how they have contributed to income disparities and affected the well-being of different segments of the population.
The first thing that we ought to ask ourselves is; what is the purpose of government especially as captured in the constitution of the federal republic? There is no other better place to begin this inquiry than to go to Chapter 2 of the 1999 Constitution as amended that provides for Fundamental Objectives and Directive Principles of State Policy which provides for socioeconomic rights which essentially captures the duty of the government to the people and to the nation.
It states amongst others from Section 14 to 21 which it covers that; “… the security and welfare of the people shall be the primary purpose of government…”;
“… provide adequate facilities for and encourage free mobility of people, goods and services throughout the Federation …”;
gives Nigerians a right to prosperity, equal distribution of wealth, equality of status, happiness, non-monopolization of the economy, provision of adequate shelter, suitable and reasonable minimum wage, old-age care, pension and employee benefits; ‘… adequate medical and health facilities for all persons …; ‘free, compulsory and universal primary education and free university education; “… protect and improve the environment and safeguard the water, air and land, forest and wildlife of Nigeria ..
Despite the fact that they are not justiceable, they remain the pillars of the 1999 constitution and the duties and responsibilities which every government in Nigeria owes its citizens. How then has Tinubu’s Economic policies fared in comparison with these provisions?
Majority of the Economic policies as we have witnessed by this Government may have unwittingly negated all the provisions of Chapter 2 of the 1999 Constitution as amended. They clearly do not make Nigerians feel secure neither do they provide for the welfare of the citizenry. Nigerians have become poorer as the gap between the poor and the rich widens as a result of these policies thus far. The worrying thing is that it is not abating but deepening by the day.
What does the economic policy that criminalizes subsidy in Nigeria and hikes the price of petrol which is a key product that has the power to influence the prices of other products in Nigeria mean to Nigerian masses and workers and other sections of the citizenry? What are the implications of this on their welfare and security? What are the implications of the unbridled and questionable borrowings by the NNPCL on behalf of the federal government in billions of Dollars to shore up the Naira at inexplicable interest rates and consultant’s fees?
We can only describe the Economic policies of this government as the enthronement of Profit over the people. Those that are therefore applauding these policies are the Bretton-wood Institutions (IMF and World Bank) who as usual have foisted the supremacy of a pseudo-market system without adequate institutional capacity to check abuses on the country to the detriment of the citizens. They are gainers because they have kept on succeeding in leaving our economy perpetually weak so that we are domestically incontinent and deeply dependent on Western Metropoles for every facet of our economic activities. This allows foreign nations to continue plundering our resources and also have a free rein to repatriate the expropriated resources. We have therefore been opened up for continuous wealth looting by the Western nations which the IMF and the World bank work for.
The second group who are smiling to the Banks are the rentiers who are like leeches that make money without contributing much productively to the growth of our economy. Those who for example act as consultants and collect fees for the numerous sweetheart deals around the wanton borrowings. Some of them made 2% from the over U$3.3B borrowing by the Government in pursuit of its now failed policy of shoring up the Naira. The interest rate on that borrowing alone remains scandalous but that is part of the legacy of the economic policies of this government.
The palliative economy or the feeding bottle economy which runs on the creation of hardship then giving of a little token to cushion its affect has created a league of treasury looters and they are smiling to the Bank. The various scandals as witnessed during the last government where billions of Dollars were frittered away in the name of Humanitarian affairs have worsened; the huge sums in Private accounts and the flights from Abuja to Lokoja are still with us. The rogues both exposed and unexposed are running riot and smiling to the banks while the people continue to suffer. It therefore seems good business to “beggar Nigerians” or make them poorer so that more money will be made available for looting.
The Oil and Gas fat cats are happy as hikes in price of PMS was announced. Billionaires were made overnight while poor Nigerians who are dependent on PMS for transport and Energy to run their homes and businesses suffered adversely. As far as these operators in the Oil and Gas industry are concerned business is good and the Consortium that has the monopoly for importing products led by the NNPCL are applauding.
Politicians and the wealthy who had foreign bank accounts and assets are gainers too as the Naira was steeply devalued and left in the hands of the so-called market forces. The journey into deeper suffering continues for the masses and workers who receive fixed but poor wages. The existence of the gap between the Parallel Market and the Official Market continues to create room for arbitrage. In a paddy, paddy nation like ours, foreign exchange round-tripping continues. The few with the necessary connection are happy while inflation eats up real wages and incomes of the poor.
In all of these, Nigerian workers suffer deeply while the unemployed and poor masses experience the worst kind of deprivation never seen in this part of the world before. For a country that had over 133m multi-dimensionally poor before May 29, we are sure from estimates that we may have nearly 150m multi-dimensionally poor people living in this country presently.
Genuine businesses in the manufacturing and real sectors of the economy suffer leading to shutdowns and increasing de-manufacturing. GSK, Sanofi, NAMPAK, P&G, Shell to mention but a few are leaving Nigeria because of the harsh economic environment yet, the government fiddles. More job losses and increasing un-employment stares us in the face as both workers and their employers groan under the heavy yoke of the policies. While patriots lose their businesses, scavengers and smart-Alecs clink their glasses in celebration. They have been seeking to approve a new electricity tariff in the midst of darkness and harrowing poverty. Instead of service reflective tariff, they talk glibly about Cost-reflective tariff. This will impoverish workers and the masses more while putting more money in the hands of those who cornered the Electricity companies. Is it not absurd that Government says that it is voting Trillions of Naira into GENCOs and DISCOs it has sold? Anyway, it explains the fact that the buyers of the privatized Electricity companies are also the Sellers.
In essence, while the few who are rich smile to the banks, majority of Nigerians go hungry and are worried about where their next meals will come from. Nigeria as a nation is therefore the greatest loser as its economy is weakened and traumatized unable to grow and remain sustainably healthy. Social unrest and strife increase manifesting in the series of kidnappings, abductions, and general insecurity around the nation while mistrust amongst the people deepens and the disconnect between the citizenry and the government exacerbates. It is a growing dilemma and it is dangerous for our nation and demands that urgent steps be taken.
Conclusion:
We conclude by saying that thus far, the economic policies of the Tinubu administration, largely driven by neoliberal principles, have sparked mixed reactions. While some measures MAY attract foreign investment and provide immediate fiscal relief, they come with significant socio-economic consequences. The removal of petrol subsidy, Naira devaluation, and other measures contribute to inflation, reduced purchasing power, and job losses. The expansion of foreign exchange allocation and privatization efforts may benefit specific groups, but historical precedents raise concerns about their long-term success. The cash crunch, whether intentional or not, poses challenges for citizens. A holistic overhaul of these policies is essential to make them more effective and sustainable.
We urge the government to review some of its policies and seek creative ways to reduce the hardship on the growing army of the poor in Nigeria, support Micro, Small and Medium Enterprises, boost agricultural sector, take deliberate steps to encourage cottage industries dotting the nation’s landscape, pay workers a living wage to encourage productivity, provide incentives for struggling businesses in the organized private sector, get the publicly owned domestic refineries working to provide cheaper Petroleum products, pursue the CNG alternatives, increase budget effectiveness, grow the domestic economy and purge itself of the growing number of corrupt public officials by ensuring that there is consequence for every act of the breach of public trust.
Our nation is in dire straits and it is only by the leadership exhibiting more patriotism and thinking more of the citizens that they can craft policies that will lift our nation out of the doldrums. The world Bank as unreliable as their data is on developing nations has predicted a 3.3% growth in our economy this year. We just hope it is real growth and not that which is driven by the devaluation of the Naira. However, we can grow faster than this if we learn as a nation to put our food where our mouth is. Listening to the IMF and World Bank has never helped us and will never help us. Our destiny is in our hands and we can take deliberate and sustained steps to support our real sectors, nurse and encourage them to grow.
“It will get hard before it gets better” is a story we have heard over and over but the reality is that it has continued to get worse. Nigerians demand concrete, transparent and visible measures to arrest the continuous slide into deeper economic despondency, stabilize it then begin a push back and grow our economy. Let us grow our economy by putting our people once again at the centre of our economic policies and governance. That is why we are worried that our fears concerning the neoliberal policies of the government are becoming manifest. The spate of borrowings leveraging on future sales of our resources not only destroys our today but mortgages the future.
The rate of poverty has increased tremendously, increasing desperation, suicide and “Japa” have all become the lot of the masses. Politicians are inflating the budget to feather their nests and purchase luxury vehicles and items to live cozily to the detriment of our people and dear nation. Anybody that thinks this will continue without consequences is dwelling on illusion because it is clearly unsustainable.
Any reform that does not deliberately reduce the cost of governance in Nigeria by at least 50% is deceptive. Any Policy that awards humongous benefits to those in government allocating scarce public resources to live in opulence, build mansions, buy luxurious cars, treat themselves abroad while Nigerians die over common ailments in hospitals here, maintain long convoys, receive prayer alerts and all manners of spurious allowances while our people can barely scratch a survival can only be summarized as voodoo.
Unfortunately, we do not see courage in actions that pillage the people rather we see cowardice in bowing to the pressures of foreign interests (IMF and World Bank) against that of your own people. That is not what reforms look like but it is exactly how the path to deforming a people and a nation looks like. We therefore strongly say that Tinubu’s Economic Policies have thus far deformed Nigerian workers, masses and indeed the nation’s economy.
We urge the Nigerian Government to expedite the process for negotiating the new national minimum wage which should reflect the real cost of living thus approximates to a living Wage for Nigerian workers. Elimination of wages that enforce and validate poverty underpins the President’s Renewal of Hope Agenda. The business case for a Living Wage is huge with deep positive multipliers for our traumatized economy.
Thanks for listening!