Common denominator in the arguments of the rabid supporters of President Bola Tinubu’s policies and the inevitable pauperisation of the people is the refrain that a better tomorrow beckons when the reforms would have kicked in. When a definition of the reform is sought, no explanation is forthcoming.
In the wake of the #EndBadGovernance protests that began on August 1, 2024, Vice President Kashim Shettima went a step further in pointedly proclaiming that the economy Tinubu inherited was “a big mess” while acknowledging that he and his principal were part of the Muhammadu Buhari administration that orchestrated the mess with its unmitigated incompetence. But the crucial part of how to go about charting a path to reform and recovery is unknown even to them. Despite the fairly long notice of the protest, enough time to articulate its game plan and timeliness to engage Nigerians to buy into its agenda, the presidency opted for obfuscation.
Over 40 percent of the 220 million population, about 100 million people, live in multidimensional poverty with inflation at a 28-year high of over 34 percent. The exasperated youth just needed to be given hope that probably, despite the hunger, there could be a silver lining tomorrow. What came from Aso Rock was a massive campaign to undermine the planned protest. From sponsored media blitz to stifle the protest, sponsorship of pro-government protesters to protest against the protest to using security agents to intimidate and muscle the people involved, nothing was spared, especially finances to kill the protest.
This was followed by a daring escalation of the government’s desire to ensure that there is no discernible voice of dissatisfaction despite the depth of hunger and deprivation Nigerians were contending with. Protesters who were arrested are now being tried on treason and conspiracy charges for “attempt to overthrow the government.” Even organised labour is also caught in the web of intrigues by Abuja.
While it seemed there was a measure of coherence in government’s stance on the pricing of refined petroleum products at the time agreement was reached for a new minimum wage, the tactless increase in petrol that followed has effectively rubbished any pretence of strategy or policy. Before the N70,000 minimum wage could be activated, the retail price of petrol was unilaterally increased to nearly N900 per litre in a manner that pitched the government as lacking cohesion or discernible strategy. While NNPCL issued an official notice of significant price review through a memo, Abuja played dumb.
With over 25 years total reliance on imported petrol to power the economy, so much was made of the expected coming on stream of Dangote Refineries. Buhari projected it as the final solution to the country’s illogical failure to rehabilitate any of the four refineries. Amazingly, when the refinery became ready to stem the loss of hard currency spent to import finished products, NNPCL and its subsidiaries started singing discordant tunes. All the reasons adduced to frustrate the supply of crude oil to the refinery pointed towards only one direction: Why NNPCL will keep importing petrol this time from a new outlet that never figured until Tinubu became president, Malta. In effect, subsidy would become a permanent feature of the oil industry and the economy.
Against the backdrop of the admonitions of leaders and economy watchers that the cost of governance is way too high and requires concerted measures to reduce, the federal government’s response has been on the need to raise taxes to keep oiling the bureaucracy.
On September 3, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, announced that the committee is proposing a law to the National Assembly to increase Valued Added Tax from the current 7.5 per cent to 10 per cent. It was a strange proposal to consider at a time the 28-year high inflation has driven majority of Nigerians to multidimensional poverty. Of course, when it elicited strident condemnation, Wale Edun, Minister of Finance, routinely dismissed it.
This cacophony of voices and ideas on Tinubu’s economic reforms is not in tandem with the claim that the country is on the path to returning to growth in its economy. The government has not told the people the route to restoring the purchasing power of the local currency. Rather, what is regularly dished are proposals on how tax will be increased, cost of services will rise and the naira further devalued.
It is like the purveyors of proposals for additional burden to be imposed on Nigerians live in another planet. Only when economy watchers, civil society organisations, religious organisations and political leaders from opposition parties voice their objections does it dawn on them that the people have lost the capacity to absorb more hardship. What sort of tomorrow and hope is being sold? Without a viable plan, pathway and road map, it is a hollow and planless slogan.
