Nigeria @ 64: Economic hardship, political rifts overshadow celebrations
01 October 2024 |
4:35 am
• Cost of living crisis, high energy cost remind citizens of institutional failure • Country still in search of unity, development • Ethnic groups demand restructuring, new constitution • Greed, corruption, bane of modern Nigeria, says Afenifere Nigerians are often admired and mocked as among the most resilient people. However, the persistent increase in…
• Cost of living crisis, high energy cost remind citizens of institutional failure
• Country still in search of unity, development
• Ethnic groups demand restructuring, new constitution
• Greed, corruption, bane of modern Nigeria, says Afenifere
Nigerians are often admired and mocked as among the most resilient people. However, the persistent increase in economic challenges, political fragmentation, tribalistic political campaigns, and institutional shortcomings are exerting immense pressure on both the populace and corporate entities. This presents a significant concern as the nation commemorates yet another year of political independence today.
The government celebrated the recent decline in the inflation rate, which had hit a multi-decade high before the recent hiatus, as a sign that its economic reforms have begun to feed into the economy. However, experts have insisted that ease in inflation means prices are rising at a slower rate and not falling, which Nigerians earnestly desire.
The price crisis seen in the past year, perhaps extending back to May 29, 2023, when the current pro-market reform administration took office, has pushed basic consumption—food, shelter, and clothing—into the realm of luxury.
For instance, some staple food items have increased by over 100 per cent in the past year. For one, a bag of rice (a common reference in measuring the cost-of-living conditions of poor households) has increased from an average of N50,000 to about N90,000 per 50 kilogrammes, about an 80 per cent increase. As of yesterday, top quality had risen to about N110,000, raising fear that the food challenge crisis could snowball into a more serious crisis.
The spike in the price of food raises questions about the efficiency and sincerity of the government’s interventions. When the Federal Government announced the take-off of import duty waivers of grains, a bag of rice sold for less than N80,000 or about 15 per cent above the N70,000 minimum, which has only been partially implemented. The salaries of most workers in Nigeria have been static. Two months after agreeing to a N70,000 minimum salary with organised labour, the government has yet to fully get the new wage off the ground.
The rising cost of food means an increasing number of citizens are forgoing other consumption, including health and education, for food. Some research organisations suggest that Nigerians spend above 60 per cent of their income on food.
Lack of shelter, an age-long issue, has become a major crisis. Even some downtown areas in Lagos have seen as much as a 100 per cent increase in the cost of rent since the last time the country celebrated its Independence. In Surulere, a two-bedroom flat goes for as high as N3 million yearly.
The current unbearable cost of commuting is a regular reminder of how market reform has stretched survival since last year. Since October, premium motor spirit has moved from an average of N630 per litre to about N1,200 as challenges rocked through the downstream segment of the petroleum industry. And since May, when President Bola Tinubu assumed office with a message of hope, the price of the essential commodity has climbed up by over 500 per cent—from N190 to N1,200.
With the Nigerian National Petroleum Company Limited (NNPC) unable to meet several deadlines set for the commencement of the Port-Harcourt Refinery after rushed mechanical commissioning, the challenges in the downstream escalated with Dangote Refinery over crude supply and product offtake from the facility.
Although Tinubu, who doubles as the petroleum minister vowed to ensure the price of PMS remained at N630 per litre, in less than a year, the president backtracked, allowing NNPC, which was already plunged into a $6.8 billion petroleum product debt to increase the price of the white product.
This comes amid the increase in electricity tariffs by over 400 per cent for consumers under band A. The Minister of Power, Adebayo Adelabu, boasted that the country is now enjoying electricity, and 40 per cent of consumers now get 20 hours per day of supply. However, most consumers insisted that supply remained epileptic.
Since 2013, the wholesale electricity market in Nigeria has never invoiced more than 4,000 MWh/h in a monthly invoice to Distribution Companies (DisCos).
Some stakeholders noted that the 12 million registered customers only account for the known energy users, excluding an unknown number of illegal connections.
A market analyst, Lanre Elatuyi, noted some improvements in electricity supply for Nigerians connected to the national grid but cautions that challenges remain, especially for industrial and commercial customers still reliant on captive generation.
“There’s been a degree of reliability in supply compared to what we used to have, but it is not yet Uhuru,” said Elatuyi. He noted ongoing reforms, including the impending transition to a competitive wholesale electricity market and the regulatory autonomy granted to states to legislate on electricity distribution.
He said the Federal Government is working to expand energy access in rural areas through the World Bank and the Rural Electrification Agency’s DARES programme.
Elatuyi stressed that this is not the time for celebration but a moment to remain focused, working with experts to ensure a power sector that provides reliable, affordable, and sustainable electricity for all Nigerians, regardless of class or income.
Nigeria has also witnessed unstable prices of diesel and aviation fuel, while Liquefied Petroleum Gas (LPG), which hovers around N9,000 for a 12.5kg cylinder now sells for over N13,000.
However, the introduction of compressed natural gas (CNG) for vehicles is serving as an incentive for some motorists, although the rate of penetration has been slow amid the high cost of initial conversion and the availability of infrastructure to support the scheme across the country.
For Kelvin Emmanuel, an economist, that the NNPCL has failed to see the turnaround maintenance (TAM) of its three refineries through in about 10 years is unfortunate and shows how much the country has deteriorated in efficiency level. He argued that the current pressure on the naira that is partly responsible for the low value of the Nigerian currency is caused by the failure of the NNPCL.
Against the backdrop of poor business performance, the Lagos Chamber of Commerce and Industry (LCCI) said there is very little to celebrate for Nigerian businesses as the quality of the business environment continues to deteriorate.
Gabriel Idahosa, president of the LCCI, decried that in past years, the real sector continued to battle weak infrastructure, an uncertain policy environment, and institutions, which have continued to adversely affect many economic enterprises’ efficiency, productivity, and competitiveness.
He further lamented that the country’s debt crisis, unbearable interest rate, high inflation risks, insecurity, FX illiquidity and falling purchasing power of consumers are a consistent reminder of the government’s failure.
Certainly, the hopes of the founding fathers of having a united country with accelerated economic growth and development are far from the current reality.
The drum of war and disintegration of the country by various separatist groups have dwarfed initiatives for socio-economic prosperity many leaders dreamt of on October 1, 1960.
Since the first military coup of January 15, 1966, when the 1963 Constitution was suspended, leading to the counter-coup in July of the same year to the civil war, the country has been in search of the elusive peace and unity among various ethnic nations that make up the country.
The mistrust among the ethnic groups prevented the economic boom experienced during the 70s from translating into economic and infrastructure development in many regions as the military governments were alleged to have skewed development to a section of the country. However, agitations were suppressed by the military through the introduction of some decrees that denied Nigerians their human rights, killing many activists.
With the return of democracy in 1999, agitations from different ethnic groups demanding their rights became issues governments have been contending with, distracting them from nation-building.
Never have Nigerians been so divided, with agitations for secession as rife. While many eminent Nigerians have called for the restructuring of the country, the demand for regionalism has caused a separation between politicians from the North and South.
The Movement for the Actualisation of Sovereign State of Biafra (MASSOB), the Biafra Zionists Movement (BZM), and the Indigenous People of Biafra (IPOB) have been calling for the secession of the South East from Nigeria.
Meanwhile, the Yoruba Self-Determination Movement, led by Prof Banji Akintoye, is spearheading other groups in the South West to pull the region away from Nigeria.
Boko Haram has killed many Nigerians and destroyed properties worth several trillion Naira in their agitation for their form of Islam in the North, while the agitation for resource control has defined the politics of the South-South.
Presently, there is a weekly sit-at-home in the Southeast region every Monday, affecting the economic well-being and security of the people. In an interview with The Guardian, Dr Joe Nworgu, a former Secretary General of Ohanaeze Ndigbo, stated that the Igbo people have continued to be treated like conquered people. He added that the conditions that led people to resort to war several years ago are still being replicated by the government. He noted that unity will continue to elude the country until fairness, justice, and equity are established in the polity.
Nworgu pointed out appointments, citing federal government projects and infrastructure, political power, among others, as necessities that have continued to be denied to the southeast region. He stressed that these denials would continue to provoke the people to agitate if not addressed.”
Elder statesman and founder of the All Progressives Grand Alliance (APGA), Chief Chekwas Okorie, noted that military interference in the country’s politics created disunity. He stated that enduring unity would forsake the country unless the constitution they imposed on the country is reviewed.
However, a professor of International Law, Prof Jehu Onyekwere, stated that Nigeria’s unity is challenged by inequality, poverty, unemployment, lack of opportunities, corruption, poor governance, electoral violence, and manipulation, which have compounded the development.
He stressed the need to encourage inter-ethnic dialogue and cultural exchange programs, strengthen institutions, promote transparency, address socio-economic disparities through targeted initiatives, and foster inclusive politics and electoral reform for the country to enjoy unity.
Onyekwere also added that, as a long-term strategy for unity, the education curriculum needed to be revised to promote national history and civic values, establish national youth service programs, promote economic development and resource distribution, and provide leadership to address disparities and ensure inclusive policies.
Regarding the agitation for regionalism, Okurounmu said, “Nigeria cannot be talking of going back to the regional arrangement at this time because most of the existing states may not like to subsume themselves under any regional government any longer.”
The President of the Yoruba Ronu Leadership Forum, Akin Malaolu, stated that Nigeria should celebrate 64 years of independence and 25 years of democratic rule. However, he noted that much progress is still needed in governance, the economy, and national unity.
Malaolu criticised the current level of extravagance among the political class, highlighting that the existing constitution allows the ruling class too much freedom without being held accountable. He urged President Tinubu and leaders of the National Assembly to introspect and devise ways to address the country’s unity and peaceful coexistence.
The pan-Yoruba socio-cultural and socio-political organisation Afenifere identified greed, ethnicity, and religion as the primary factors contributing to Nigeria’s present divisions. According to Comrade Jare Ajayi, the organisation’s national publicity secretary, greed motivates public officials and those in positions of authority to manipulate situations in their favour and for the benefit of their close associates.
On the question of whether Nigeria should celebrate its 64th anniversary, the Ijaw National Congress (INC) and the Pan Niger Delta Forum (PANDEF), the apex organisation in the Niger Delta, expressed the view that there is nothing to celebrate.
The National Publicity Secretary of INC, Ezonebi Oyakemeagbegha, highlighted that Nigeria has deviated from the right track and stressed the urgent need to realign in order to prevent continued poor performance and economic struggles.
For his part, the National Publicity Secretary of PANDEF, Dr. Ken Robinson, questioned whether there was any reason to congratulate Nigerians amid the present harsh economic strains on the populace and the challenges of insecurity.
He said, “Unfortunately, at 64, Nigeria is not quite a nation; the country’s journey to nationhood and socio-economic development has been greatly impaired and constrained by structural and social defects.”
For the INC spokesman, “Besides its huge population, Nigeria cannot show anything else that demonstrates it as a giant of Africa. No sector is doing particularly well, be it the economy, sports, education, or health.”
He noted that the 1966 military coup was the point of derailment when a perfect constitution that was running smoothly was sacked, and an army document was imposed. The PANDEF spokesman also lamented that the 1999 Constitution undermines the principle of federalism by overtly concentrating power and resources at the centre, impeding national development, security, peace and stability.
The INC spokesman emphasised the need to get back on track to ensure the democratic system works, where votes count. He called for a new constitution to address structural imbalances and ensure equity, fairness, and justice. The surest route to fixing Nigeria is restructuring to correct the foundational defects and imbalances.
Calling on Nigerians to think seriously if the country is to avoid disintegration, a chieftain of Afenifere, Femi Okurounmu, said that the unity of the country has been seriously undermined as a result of bad governance over the years and, worse still, the system of government we operate.
Okurounmu, who said there was little to celebrate at 64, added that the present system of government needed to be restructured if the nation would not disintegrate.
According to him, many things have seriously undermined the unity of Nigeria since the military truncated the First Republic through the military coup of 1966. He also said the type of democratic system we copied from the United States is not helping our development, let alone our unity as a nation. He noted that the electoral system we have embraced undermines our progress and unity, especially the process that has encouraged the rich or wealthy to dictate party primaries, as we have witnessed since 1999.
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