Economy, Featured
A good number of Nigerians may not be surprised of the figures released by the National Bureau of Statistics, NBS, on increased headline inflation rate of 28.92 per cent and the data on the state of affairs in the country. Rather than stay hungry in the face of suffocating economic realities, they have in their ever resilient manner chosen to device other means of survival while engaging in small and medium-scale businesses.
By Anthony Isibor
A good number of Nigerians didn’t go into 2024 without seeing signs of the looming economic challenges awaiting them as many experts had earlier warned of what should be expected in the New Year.
Indeed, one of the experts, who warned in December 2023 of the impending economic hardship was Prof. Chiwuike Uba, a Development Economist, who urged Nigerians to spend every kobo they earn wisely.
The economist said that considering the prevailing cost-of-living crisis and the mounting pressure on incomes, it is crucial for Nigerians to redirect their spending towards essential and affordable indulgences.
Accepting that Nigerians are facing severe economic and social hardship President Bola Tinubu had noted that from the boardrooms at Broad Street in Lagos to the main-streets of Kano and Nembe Creeks in Bayelsa, “I hear the groans of Nigerians, who work hard every day to provide for themselves and their families.”
He acknowledged the nation’s frustrations, promising to focus on revamping the economy and restoring security and highlighted several strategic decisions made by his administration, including the controversial removal of fuel subsidy and reforms in the foreign exchange system. These decisions, he admitted, brought discomfort, but were necessary steps to avert fiscal catastrophe.
Nigerians may have taken heed to the numerous warnings. For example, a hair stylist popularly known as perfect in Lafenwa, a suburb of Otta in Ogun state told Realnews that he now only uses electric clippers since he can neither afford to pay for electricity bills or the high cost of petrol.
He said: “Thank God for rechargeable clippers, if not I would be looking for another business. All I need to do is find somewhere to charge them at night.
“How much do I make, how much is the price of fuel?” he asked.
Similarly, Emeka Mordi, a lecturer at University of Nigeria Nsukka, says he has learnt some mechanical skills that enable him to fix his car and save costs. He now services his car himself changing engine oil, oil filter and plugs.
“My mechanic encouraged me to buy some tools and he taught me how to fix a few things. I am happy to learn and apply that knowledge,” he said on social media platform X.
In addition, a video published by Businessday reveals that most artisans have developed more creative ways to attract businesses just to stay afloat even as they await on the government to resolve the economic crisis.
However, the recent data released by the NBS which showed that Nigeria’s headline inflation rate increased to 28.92 per cent could be regarded as the call to Nigerians to further tighten their belts. The report, however, showed that not much has been achieved by these lofty reforms of the government.
According to the NBS report, the latest Consumer Price Index (CPI) showed that Nigeria’s headline inflation rate increased to 28.92 per cent in December 2023, which was 0.72 per cent points higher than 28.20 per cent recorded in November 2023.
“This means that in December 2023, the rate of increase in the average price level is more than the rate of increase in the average price level in November 2023,” the report said, adding that the percentage change in the average CPI for the 12 months ending December 2023 over the average of the CPI for the previous corresponding 12-month period was 24.66 per cent among others.
In his clarification of the data on Arise TV, Prof Uche Uwaleke, explained that the economic pressure could be seen from the pattern of the increase, which didn’t only occur year on year but also month on month. According to him, the rise is both demand and supply induced.
“Increasing ways and means over time has had cause to impact negatively on inflation despite the rate heights we saw in 2022 and 2023. The central bank on the one hand will be tightening rates to bring down inflation and on the other hand, will be printing naira notes through ways and means advances to the government.
“That was way the rate high didn’t really have any significant impact on inflation. So there is the demand induce side, which is within the remit of the central bank.
“As part of the demand induced side, in recent times we have had an increase in Federal Account Allocation Committee, FACC allocation. These days we hear that FACC share amounts in excess of N1 trillion. (Spell out FACC)
“There is also the issue of government to fiancé consumption. For the supply side; the cash push side, it should be the responsibility of the government. So when it comes to dealing with inflation, both monetary and fiscal policies must have a handshake.
“There is the issue of insecurity which is affecting poor output, preventing farmers from going to farm. There is also the issue of climate change – flooding. There is also high cost of electricity, high cost of fuel. The economy is still reeling from the impact of the removal of fuel subsidy,” he added.
However, President Bola Tinubu in his New Year message to the nation insisted that every decision he had taken since assumption of office had been in the interest on Nigerians.
“Everything I have done in office, every decision I have taken and every trip I have undertaken outside the shores of our land since I assumed office on 29 May, 2023, have been done in the best interest of our country.
“I am well aware that for some time now the conversations and debates have centred on the rising cost of living, high inflation, which is now above 28% and the unacceptable high under-employment rate.
“From the boardrooms at Broad Street in Lagos to the main-streets of Kano and Nembe Creeks in Bayelsa, I hear the groans of Nigerians, who work hard every day to provide for themselves and their families.
“I am not oblivious to the expressed and sometimes unexpressed frustrations of my fellow citizens. I know for a fact that some of our compatriots are even asking if this is how our administration wants to renew their hope.
“Dear compatriots, take this from me: the time may be rough and tough, however, our spirit must remain unbowed because tough times never last. We are made for this period, never to flinch, never to falter.
“The socio-economic challenges of today should energize and rekindle our love and faith in the promise of Nigeria. Our current circumstances should make us resolve to work better for the good of our beloved nation.”
While the average Nigerian, who is the direct recipient of numerous effects of the government’s economic policies look forward for a better future as promised, the government must do all it can to ensure that its policies are judiciously implemented and that resources are not diverted to satisfy personal goals and agenda.
A.
-January 25, 2024 @ 16:45 GMT3
Tags: Emeka Mordi Prof Uche Uwaleke Prof. Chiwuike Uba
