The country’s economy is currently on tenterhooks, gasping for breath. The economy has been ailing for a long time, manifesting all the symptoms. Every departing administration handed an unwell economy to the succeeding administration for nurturing.

Essentially, the economy of Africa’s largest nation survived primarily on fuel subsidy as life support. Other alternative supporting measures that hitherto buoyed the economy in the past were massive agriculture and non-oil resources, that were eventually abandoned by succeeding administrations.

Rather than expand the cake size, Nigeria’s ruling class feasted heavily on crude oil and neglected agriculture and other non-oil commodities.

The consequences of leadership failing to prioritise economic well-being accounted for the current massive crack and an economy nearing collapse.

Wherever one goes these days, the dominant topic for every Nigerian, young and old, male and female, is acute hardships and depressing economic situations.

The hardship didn’t start with the current administration. However, it got worse with the removal of fuel subsidy and the floating of foreign exchange rate by the government.

Hunger

Amid economic deprivation, a United Nations’ report last week alerted Nigeria’s authority to an imminent hunger. In the report, the UN predicted that 82 million Nigerians, or about 64 per cent of the country’s population, may go hungry by 2030.

The global body called on the government to tackle climate change, pest infestations, and other threats to agricultural productivity. The prediction comes in the wake of a persistent hike in food prices in the country.

There has been a similar prediction. In 2023, the Food and Agriculture Organisation predicted that no fewer than 2.6 million Nigerians in Borno, Sokoto, and Zamfara states and the FCT may face a food crisis between June and August 2024.

Stimulus package

Policy cushioning measures are essential to arresting current economic drift. The administration is sensitive to citizens’ plight. The feedback to the government from Nigerians suggests timing is of essence in activating remedial policies.

A few weeks ago, the government announced an economic stimulus package of N2 trillion. The package, designed to reflate the economy, is among several proposed measures being released by the government to cushion the hardship.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, told reporters that the emergency funding would be deployed to health, agriculture, energy and power, and other critical sectors.

“The outcome of that very important exercise is a N2 trillion package involving N350 billion in funding for health and social welfare, N500 billion in funding for agriculture and food security, N500 billion for the energy and power sector, and general business support of about N650 billion.

“In addition to a range of policy and tax measures, there are a range of executive orders that Mr. President has signed and that are being gazetted to ease the cost of doing business.

There are many funding provisions to reduce the cost of interest for certain sectors, small and medium-scale in particular, but also larger companies. “There is a line of credit that will allow them to fall cheaper than the elevated rate.

This plan is a means of stabilizing the economy and getting businesses growing again. “We know the microeconomic measures, which are necessary and have been implemented in a determined and consistent manner, led to elevated costs for industries and individuals,” Edun admitted.

Similarly, the government is set to unveil applications this month to facilitate increased access to financial support for young entrepreneurs through the Nigeria Youth Investment Fund (NYIF).

A budget of N110 billion has been allocated to rejuvenate the NYIF, aimed at empowering youths across the country. Dr. Jamila Bio-Ibrahim, Minister of Youth Development, announced the initiative during the swearing-in ceremony of the 2024 Batch B Stream I corps members at the National Youth Service Corps (NYSC) orientation camp in Paiko, Niger State, last week.

All these policies.and others before them are to reflate the economy and cushion hardships

To pretend it’s well with the economy is to feign ignorance and face stark social disorders that are imminently staring at Nigerians’ faces

triggered by the economic reforms.

PECC

To stabilise the drifting economy, the Bola Ahmed Tinubu administration constituted a team of economic experts called the Presidential Economic Coordination Council (PECC).

The body was inaugurated last week simultaneously with the launch of the N2 trillion economic stimulus package. The PECC is a 31-member council.

Speaking at the inaugural meeting of the 31-member Council held at the Council Chambers in Abuja, President Tinubu, who chairs the Council, underscored the need for innovative solutions to the country’s economic challenges, noting the importance of public-private partnerships in driving economic reforms.

”We have the challenge of energy security in Nigeria. We need to work together to improve our oil and gas sector, and we must also increase electricity generation and distribution throughout the country.

”We are determined to do that with your cooperation, collaboration, and recommendations. As a nation, it is so shameful that we are still generating 4.5 GW of electricity.

”We must increase our oil production to two (2) million barrels per day within the next few months, and we are determined to remove all entry barriers to investments in the energy sector while enhancing competitiveness,” the President stated.

He announced measures, which will run concurrently with the National Construction and Household Support Programme, to stabilise the economy, enhance job creation, and foster economic security.

PCC members include the Senate President, the Speaker of the House of Representatives, the Chairman of the Nigeria Governors Forum, 12 ministers, and the Governor of the Central Bank of Nigeria.

Members from the organised private sector include Alhaji Aliko Dangote; Mr. Tony Elumelu; Alhaji Abdul Samad Rabiu; Ms. Amina Maina; Mr. Segun Ajayi-Kadir; Dr. Funke Opeke; Dr. Doyin Salami; Mr. Patrick Okigbo; Mr. Kola Adesina; Mr. Segun Agbaje; Mr. Chidi Ajaere; Mr. Abdulkadir Aliu; and Mr. Rasheed Sarumi.

Governance Cost

Elected and political leaders are yet to tone down on their lavish living standards. It cuts across the three tiers of government. While they mouth it publicly at various fora, reality checks on governance costs and demonstrable opulence by elected and appointed government officials invalidate the claims.

The unwillingness of Nigeria’s elected and appointed officials to cut down on the high cost of governance is at the core of unyielding ground by organized labour bodies in the ongoing wage increase agitation.

A government cannot preach hardship tolerance and perseverance for citizens while the appointees and elected officials are wasting scarce resources. The masses are not blind!.

Were members of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) convinced about government sincerity in addressing persisting governance costs, agitation for excessive salaries would have been addressed.

Last Line

To pretend it’s well with the economy is to feign ignorance and face stark social disorders that are imminently staring at Nigerians’ faces.

The earlier the government activates a number of stimulus packages in the lineup, the better.