• Nigeria risks same challenges in 20 years without reforms, economist warns
• Expert urges use of subsidy gains to tackle fiscal challenges, avoid new loans

The Presidency and Labour Party’s 2023 presidential candidate, Peter Obi, clashed yesterday over President Bola Tinubu’s sudden removal of the fuel subsidy on May 29, 2023.

Speaking on Arise Television, Obi, a former Anambra State governor, argued that the controversial subsidy should have been phased out gradually, not scrapped overnight. He demanded transparency on the billions supposedly saved since the policy shift, challenging the government to show Nigerians where the funds were invested.

However, the Presidency struck back. Special Adviser to the President on Policy Communication, Daniel Bwala, branded Obi “shallow” and unfit to discuss economic and governance matters. He accused Obi of being fixated on power while ignorant about its responsibilities.

“Obi is desperate for power but doesn’t understand governance,” Bwala stated in a post on his official X handle (formerly Twitter).

Although Obi conceded there was “nothing wrong” with removing the subsidy or floating the naira, even admitting he would have taken similar steps if elected, he insisted that Tinubu’s government botched the execution.

“If you read my manifesto, it’s there—the process I would’ve followed. The problem isn’t the removal; it’s the chaotic way it was done,” Obi said. He continued: “We were told the subsidy had to go so we could stop borrowing and invest in infrastructure. Billions saved—where is it? Where’s the investment?”

Bwala expressed surprise that Obi, after months of criticism, aligned with Tinubu’s economic policies, only to backtrack with vague talk of “organised” implementation.

“Obi says he supports our subsidy removal and forex reforms but claims he’d do it in a more ‘organised manner.’ What’s that? He played with words and arrived at the same position,” Bwala said.

“Anyone rational can see it: these guys are just hungry for power. No real alternatives. His grasp of economics and governance is embarrassingly thin.”Bwala added: “Even with the Obidient-friendly interviewer, there was no ‘I put it to you!’ and no Rottweiler-style barking. Just word games.”

In the interview, Obi also addressed IPOB and other separatist movements, condemning all forms of violence and illegality. He maintained that agitation, whether regional or ideological, is part of a functioning society and must be resolved through dialogue, not repression.

“I criticise every act of wrongdoing, East, West, North or South. But agitation isn’t the enemy; silence is. You don’t solve problems by criminalising dissent,” he said.

Responding to critics who claim he is soft on IPOB, Obi clarified: “I’m tough on everyone. During my campaign and till now, I’ve said: I’ll talk to all agitators. In my own home, my children agitate. I don’t beat them into submission; I talk to them. That’s leadership.” He lamented that in Nigeria, “Good character has become weakness. We glorify shouting and chaos as strength. That’s why the system is collapsing.” Obi also weighed in on the escalating political crisis in Rivers State, warning that Nigeria was straying further from democratic norms.

“This country hasn’t demonstrated it is a democracy. Declaring a state of emergency in Rivers is a direct blow to that notion,” he said.He stressed that even the most severe political conflicts must be addressed within the boundaries of law and democratic processes.

“You cannot fix democracy by breaking its rules. That’s not resolution; that’s regression,” he warned. Nigeria risks same challenges in 20 years without reforms, economist warns

Economist Paul Alaje has cautioned that Nigeria may continue to face persistent challenges such as poverty, hunger, unemployment, and local government autonomy issues over the next two decades unless urgent economic and structural reforms are implemented.

Speaking on Channels Television’s Sunrise Daily programme yesterday, the Chief Economist and Partner at SPN Professionals assessed President Bola Tinubu’s two years in office and the current state of the Nigerian economy.

“Well, we might be talking about struggling with local government autonomy in the next 20 years. We were doing it 20 years ago, and in the next 20 years, we may do it if nothing changes.

“We might still have to discuss poverty, hunger and deprivation with high unemployment in the next 20 years if we do nothing,” Alaje remarked. He emphasised that governmental actions need to be impactful and questioned whether current efforts are sufficient to address pressing economic issues such as inflation, unemployment, and food insecurity.

“When I say nothing, it does not mean the government at all levels will not do anything. It means what they are doing, will it be significant enough?” he asked.

Alaje also underscored the critical role of electricity in economic productivity and poverty reduction, highlighting a direct correlation between energy provision and wealth creation.

“If we don’t have electricity, poverty may still reign supreme,” he stated, referencing economic transformations in countries like China and South Korea achieved through widespread access to power.

“Can we make electricity ubiquitous in most places where production is taking place in Nigeria? That’s the question. There is a direct relationship between wealth creation, poverty reduction, and energy provision. China proved it. South Korea proved it,” he noted.

Concluding, Alaje warned that failing to address these challenges decisively would result in Nigeria’s future resembling its past. “We had these issues 20 years ago, and if we do nothing substantial, we will still be discussing them 20 years from now,” he said.

Expert urges use of subsidy gains to tackle economic challenges, avoid new loans

Economist Prof. Sherifdeen Tella has called on federal and state governments to use the gains from the removal of petroleum subsidies to address economic challenges and avoid incurring further debt from new loans.

Tella, who lectures at the Department of Economics, Babcock University, made the appeal during an interview with newsmen in Lagos yesterday. The advice follows President Bola Tinubu’s formal request for National Assembly approval to borrow $21.5 billion from external sources and issue a N757.98 billion domestic bond to address critical national needs. Tella questioned the necessity of new loans, given the increased revenue allocations arising from removing the subsidy.

“Since the petroleum subsidy removal, the monthly allocation to the various tiers of government has drastically increased, so the gains should be used to address their needs. Therefore, the need for more loans should not arise immediately, without accounting for the current allocation,” he said.

He urged governments to adopt innovative approaches to addressing infrastructural challenges and warned against further burdening the economy with debt.

“The tiers of government should leverage private sector participation in addressing the infrastructural gap of the people,” Tella added.