Opinion
That Promise Of Renewed Hope
For the first time in almost a decade, it felt like Nigeria had a leader. Not the one who would feign ignorance of the criminalities, insecurity and other problems across the country; the one who would allow his appointees to remain on seat all through his tenure (s) whether they were performing or not. At the on-going 2023 cabinet retreat for ministers, presidential aides, permanent secretaries and top government officials at the State House Conference Centre, President Bola Tinubu left no one in doubt that he calls the shots in this administration and that any minister who fails to perform will be shown the way out. He said, “At the end of this retreat, you are going to sign a bond of understanding between you, the ministers, the permanent secretaries and myself. If you are performing, nothing to fear, if you miss the objective we review, if you don’t perform, you leave us… Don’t be a cog in the wheel of Nigeria’s progress,”
He charged the ministers and other participants at the retreat to be focused, creative and committed to solving the numerous challenges facing the country, warning that, “You are in this ship, you will make good use of it. You must not wreck it.” The president insisted that no one person can do the job of leading the country alone but rather, a collaboration of all the ministers, heads of agencies and departments, civil servants and other appointees is needed to chart a new path for the current and future generations. Admittedly, the performance of any government is directly proportional to the quality of its elected and appointed officials. That is why presidents, and governors in any given government often recruit the right people to oversee the various sectors of the economy as ministers or commissioners, knowing that sectoral excellence positively affects the overall deliverables of government.
Tinubu has done well in recruiting “the best hands” as ministers. He has come up with eight-point agenda geared towards tackling food security; poverty reduction; economic growth; job creation, insecurity and many more. The economic hardship occasioned by fuel subsidy removal; the continued devaluation of naira which has degenerated into high rate of inflation are daily before the citizens. As it stands, Nigeria is obviously going through difficult times – broke- and in serious need of resources to revamp the ailing economy and invest in human capital and infrastructure; cognisance of the facts that the past administration plunged the country into a debt abyss. Nigeria’s total debt stock stood at N46 trillion as at March 2023, according to data by the Debt Management Office (DMO).
President Tinubu recently said that servicing Nigeria’s external debt with 90 percent of the country’s revenue was not sustainable. This came after Klynveld Peat Marwick Goerdeler, KPMG; a global professional services network solely charged with provision of audit, tax, and consulting services to businesses, on the 19th May, 2023 projected that Nigeria’s debt service-to-revenue ratio may exceed 100 percent this year. A figure which was later pegged at 73.5 per cent by DMO, saying it was unsustainable. According to reports, prior to the aforementioned projections, Nigeria had spent 80.6 per cent of its revenue on debt servicing with the hope that it would drop steeply to 60 per cent before the end of the year. With this and many other challenges facing Nigeria as a nation, much is expected of the ministers. Nigerians anxiously want to see changes in their lives. The ministers must get their hands dirty.
Another remarkable comment of the president at the retreat is that he is the president of all irrespective of political party affiliations and that regardless of religion, ethnic backgrounds “we are one.” Nigerians will want to see the president walk the talk by ensuring that people of all ethnic groups and religions are given equal opportunity to serve the country and that no ethnic group dominates the government as provided in the 1999 Constitution of the Federal Republic of Nigeria. Section 14 (3) (4) (as amended) provides for federal character, a principle that was introduced to engender a feeling of inclusiveness, such that all the people that make up the country will have the feeling that they are part of the country. It states: “The composition of the government of the federation or any of its agencies and the conduct of its affairs shall be carried out in such a manner as to reflect the federal character of Nigeria and the need to promote national unity, and also to command national loyalty, thereby ensuring that there shall be no predominance of persons from a few states or from a few ethnic or other sectional groups in that government or in any of its agencies.”
The same thing is applicable to the states. Incidentally, for decades, we have seen the opposite of this constitutional provision playing out in the country. Any government in power will want to prove that the previous governments were toddlers in the act of tribalism, nepotism, sectionalism, favouritism and the likes. In the past few weeks, social media and online platforms have been awash with concerns from critics that the present administration is tilting towards nepotism and favouritism in appointing officials for political offices. The Human Rights Writers Association of Nigeria, a few days ago accused the president of nepotism, alleging that most of the key appointments in his government were allotted to Nigerians from his ethnic group. The group stressed that the recent appointments of the governor of the Central Bank of Nigeria, Yemi Cardoso, just 48 hours after appointing Zachaeus Adedeji as the acting chairman of the Federal Inland Revenue, is a testament that the President is pushing an unseemly pro-ethnic agenda.
Similarly, another group, the Muslim Rights Concern (MURIC), has accused Tinubu of appointing mainly Christians and Yorubas into key positions, alleging that “All five key appointments made by President Tinubu to revive the economy were given to Christians and Yorubas mainly. These new appointees include the Minister of Finance, Wale Edun, the newly nominated CBN Governor, Dr. Michael Cardoso, Acting Chairman, FIRS, Hon. Zacch Adedeji, the Chairman, Tax Reforms Committee, Mr. Taiwo Oyedele and Special Adviser on Economic Affairs,” Mr. Tope Fasua. Although the presidency has debunked these allegations, it is advised that it should be addressed and that every tribe and religion should be given a sense of belonging in the country. The president should also demonstrate his professed determination “to make democracy a lasting reference for the rest of Africa” by ensuring that the democratic institutions in the country particularly the Independent National Electoral Commission (INEC) must conduct their activities correctly in line with the intendment, spirit and letters of the constitution.
He should ensure that going forward, INEC conducts free, fair and credible elections that will produce results that are reflections of the popular wishes of the people. The practice of appointing politically aligned people into INEC as against allowing INEC to be an unbiased umpire is not helpful. The recent nomination of INEC’s Resident Electoral Officers (RECs) which is alleged to be composed of some politically- biased people should not take place in a country that wants to advance democratically. As the renowned Human Rights Lawyer, Femi Falana, rightly pointed out, the nation cannot afford to have the Independent National Electoral Commission (INEC) that is constituted by card-carrying members and loyalists of the ruling party and its collaborators. Whose interest will these people protect during elections and how will it lead to an enduring democracy in the country?
So, until the appointing authorities in the country begin to take deliberate decisions to allow INEC to work, our democracy will continue to lose taste and relevance. The Bayelsa, Imo and Kogi States elections are by the corner, the president should demonstrate his resolve to see democracy entrenched in Nigeria by ensuring that the electoral body plays by the rule. That is a practical way to “give hope to the near hopeless, to Nigerians in doubt whether democracy and economic growth will be a pathway to their prosperity” instead of mere beautiful speeches.
By: Calista Ezeaku
Opinion
A Renewing Optimism For Naira
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Don’t Kill Tam David-West
Opinion
Fuel Subsidy Removal and the Economic Implications for Nigerians
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
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