President Bola Ahmed Tinubu’s administration is facing fallout after a year in office, as Nigerians struggle with worsening economic conditions and express dissatisfaction through widespread protests. The demonstrators are dissatisfied with the reforms, stating it has worsened their financial hardships. They are calling for a change in the policies, specifically the return of the petrol subsidy, to ease their economic hardships. Following his tenure as Lagos State governor, Tinubu secured victory in a boldly contested presidential election last year. Upon assuming leadership, he spent little time implementing economic strategies to enhance Financial Stability and increase government income.
Among these reforms was the elimination of the petrol subsidy, which had been a major drain on the country’s finances, costing billions of Naira each year. Over the following weeks, the country changed its foreign exchange market, giving the naira more flexibility in trading. This decision resulted in a solid drop in the currency’s value, causing a widespread cost-of-living and Inflation crisis, leading to higher food and energy costs. Since the reforms started, fuel prices have increased by more than 500%, while food inflation remains at about 50%.
Rising costs of essential items have sparked unrest and deepened poverty.
Adelaja Adeoye, an economist and business owner, emphasised that the combined effect of these changes has been extremely harmful because the nation lacks a social safety net and faces high levels of unemployment. Adeoye pointed out that the increase in the prices of basic goods has caused widespread unrest and increased poverty, leaving many citizens jobless and without social assistance. As a result, the president’s popularity has taken a hit. Also, critics argue that the government has not effectively addressed the issue of reducing spending and eliminating subsidies, leading to ongoing wasteful expenditures in governance.
However, observers have pointed out that the lavish behaviour displayed by public officials in past administrations continues under the current administration’s guidance. At the beginning of the year, the president promised to follow through with the Steve Oronsaye report, which suggests downsizing public agencies to save money on governance. Yet, the president’s ongoing appointments to government organisations have raised doubts about his dedication to fulfilling this pledge. The youth are at risk due to the absence of job opportunities and programs aimed at developing their skills. This has contributed to the protests, with analysts pointing to the government’s unfulfilled promises and the dissatisfaction with high Unemployment rates as key factors.
Efforts to bolster economic sectors have been hindered by poor execution.
Attorney Lawal Muritala recognised the Corruption and improprieties linked to the subsidy system, citing the government’s unfulfilled pledges to alleviate the repercussions of subsidy elimination. He emphasised that despite the aim of directing funds towards the actual sector, ineffective execution has increased the difficulty of many citizens. A public affairs analyst, Tunde Daramola, also stressed the importance of implementing economic reforms alongside initiatives to mitigate the hardships they may bring. He expressed disappointment in the government’s lack of foresight and its failure to offset the negative impacts of these reforms.
Many remain sceptical despite recent government efforts to ease economic pain, such as distributing rice to states and removing Tariffs on imported foodstuffs. Due to mismanagement and corruption, previous palliative measures have often failed to reach those in need. The #EndBadGovernanceInNigeria protests, which began last Thursday, have spread nationwide, resulting in casualties and injuries. The protesters’ demands include restoring the fuel subsidy, reducing fuel prices, increasing the national Minimum Wage to ₦300,000, and making Electricity tariffs more affordable. They also call for an emergency fund to support small and medium enterprises, a State of Emergency on inflation, reopening borders to stimulate trade, and prioritising locally made goods.
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According to Omoruyi Temitope, the Lead Investment Advisor at Afrinvest (West Africa) Limited, the reforms implemented by the administration may appeal to foreign investors, but they have yet to benefit the people. He emphasised the importance of prioritising the well-being of citizens in any policy decision. On the other hand, critics argue that some of these demands are unrealistic, but the overarching message is clear. The citizens are frustrated with the current state of governance and the economic hardship they face. As Tinubu’s administration navigates these challenges, experts like Adelaja Adeoye insist that a more compassionate approach is necessary. The government must prioritise human capital development and wealth distribution to ensure sustainable Economic Growth and stability.