Tinubu, a former Governor of Lagos State, celebrated his first anniversary in office on May 29, 2024. However, his efforts to provide Nigerians with a vista of hope have not met with success.
The administration has been criticized for not effectively addressing the economic challenges faced by the nation.
One significant development was the Federal Executive Council’s recent approval of N555 billion to be disbursed to 100,000 families, with each family receiving N50,000 per month for three months.
This initiative was part of an effort to provide financial relief to struggling households. However, experts argue that this measure falls short of making a substantial impact on the overall economic situation.
In October 2023, Tinubu also approved the ‘Conditional Cash Transfer’ program under the supervision of the then-Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu.
This program, backed by an $800 million loan from the World Bank, was launched to provide direct financial assistance to vulnerable populations. Despite these efforts, the program has been criticized for its limited reach and effectiveness.
Additionally, the federal government has implemented several fiscal measures to bolster the economy. These include the approval of zero tariffs, excise duties, and Value Added Tax on specialized machinery, equipment, and pharmaceutical raw materials.
This policy aims to boost local production of essential healthcare products, potentially reducing reliance on imports and supporting domestic industries.
Furthermore, the government secured a $3.3 billion crude oil-backed prepayment facility from Afreximbank and $2.5 billion in World Bank loans to enhance Nigeria’s foreign exchange supply.
These measures were intended to stabilize the economy and address the foreign exchange challenges. Moreover, the Presidential Tax and Fiscal Policy Committee has been working to increase tax revenues to support government spending.
Despite these interventions, the economic situation for many Nigerians has continued to deteriorate. Headline inflation rose to 33.95 percent, while food inflation reached 40.66 percent in May 2024.
The rising cost of living has significantly eroded the purchasing power of ordinary Nigerians, increasing the country’s misery index.
Nigeria’s debt burden also continues to be a pressing issue, reaching N121.67 trillion by the end of March 2024. In the first quarter of 2024 alone, the country spent $1.12 billion servicing foreign debt, against N3.94 trillion in generated revenue. This high debt service ratio is unsustainable and exacerbates the economic strain.
The Nigerian Naira has weakened substantially, trading at N1508.99 per dollar in the official market as of Monday. This decline in value has occurred despite various policies announced by the Central Bank of Nigeria, including the recent discontinuation of the Price Verification System Portal for importers. These policies have not been effective in stabilizing the currency or the broader economy.
Financial expert and CEO of SD & D Capital Management, Gbolade Idakolo, has criticized Tinubu’s policies, stating that they have not succeeded in alleviating the economic hardship faced by Nigerians. He noted that welfare policies by both federal and state governments have not reached the intended beneficiaries, rendering them ineffective.
Idakolo expressed concern about the parameters used to determine eligibility for the financial grants, questioning their fairness and inclusivity. “These welfare policies of the Federal and the state governments have been seen not to get to the intended beneficiaries, and the aim is always defeated in the long run,” he said.
This criticism highlights the need for more transparent and inclusive measures to ensure that financial assistance reaches those who need it most.
President Bola Ahmed Tinubu’s interventions have not effectively addressed Nigeria’s economic challenges in the first half of 2024. Despite various fiscal measures and financial assistance programs, inflation remains high, the debt burden is growing, and the value of the Naira continues to decline.
Economic experts suggest that more targeted and transparent policies are necessary to provide meaningful relief to Nigerians and to stabilize the country’s economy.
