Hardship

By Muhammad Abdurrahman

Former Vice President, Alhaji Atiku Abubakar, tackles President Bola Ahmed Tinubu over the hardships caused by the latter’s policies since assuming office as President in May 2023.

In a post on his verified social media handles, Atiku calls out Tinubu, calling the steps taken by his administration to contain the crises of currency fluctuation and poverty many people face in Nigeria “failures.”

The statement reads:

At a meeting called at his instance on Thursday to address the Foreign Exchange crisis and the problem of economic downturn, among others, Bola Tinubu failed, yet again, to showcase any concrete policy steps that his administration is taking to contain the crises of currency fluctuation and poverty that face the country.

Rather, he told the country and experts who have been offering ideas on how to resolve the crisis that he and his team should not be distracted and allowed time to continue cooking their cocktail that has brought untold hardship to the people of Nigeria.

I don’t agree with that.

The wrong policies of the Tinubu administration continue to cause untold pain and distress on the economy and the rest of us cannot keep quiet when, clearly, the government has demonstrated sufficient poverty of ideas to redeem the situation.

If the government will not hold on to their usual hubris, there are ways that the country can walk out of the current crisis.

After a careful assessment of the state of our economy at the twilights of the last administration, I knew full well that the economy of the country was heading for the ditch and came up with a number of policy prescriptions that would rescue the country from getting into the mess that we are currently in.

Those ideas, encapsulated in my policy document titled: My Covenant With Nigerians made the following prescriptions:

1. I had signed on to a commitment to reform the operation of the foreign exchange market. Specifically, there was a commitment to eliminate multiple exchange rate windows. The system only served to enrich opportunists, rent-seekers, middlemen, arbitrageurs, and fraudsters.

2. A fixed exchange rate system would be out of the question. First, it would not be in line with our philosophy of running an open, private sector friendly economy. Secondly, operating a successful fixed-exchange rate system would require sufficient FX reserves to defend the domestic currency at all times. But as is well known, Nigeria’s major challenge is the persistent FX illiquidity occasioned by limited foreign exchange inflows to the country. Without sufficient FX reserves, confidence in the Nigerian economy will remain low, and Naira will remain under pressure. The economy will have no firepower to support its currency. Besides, a fixed-exchange rate system is akin to running a subsidy regime!

3. On the other hand, given Nigeria’s underlying economic conditions, adopting a floating exchange rate system would be an overkill. We would have encouraged the Central Bank of Nigeria to adopt a gradualist approach to FX management. A managed-floating system would have been a preferred option. In simple terms, in such a system, the Naira may fluctuate daily, but the CBN will step in to control and stabilize its value. Such control will be exercised judiciously and responsibly, especially to curve speculative activities.

4. Why control, you may ask.

(i). Nigeria has insufficient, unstable, and precarious foreign reserves to support a free-floating rate regime. Nigeria’s reserves did not have enough foreign exchange that can be sold freely at fair market prices during crises.

(ii). Nigeria is not earning enough US$ from its sales of crude oil because its production of oil has been declining. And,

(iii). Nigeria is not attracting foreign investment in appreciable quantities.

These are enough reasons for Nigeria to seek to have a greater control of the market, at least in the short to medium term when convergence is expected to be achieved.

Tinubu’s new policy FX management policy was hurriedly put together without proper plans and consultations with stakeholders. The government failed to anticipate or downplayed the potential and real negative consequences of its actions.

The Government did not allow the CBN the independence to design and implement a sound FX Management Policy that would have dealt with such issues as increasing liquidity, curtailing/regulating demand, dealing with FX backlogs and rate convergence.

I firmly believe that if and when the Government is ready to open itself to sound counsels, as well as control internal bleedings occasioned by corruption and poorly negotiated foreign loans, the Nigerian economy would begin to find a footing again. – AA

By Ibrahim El-mu’azzam

It’s a very hard moment for Nigeria. It’s really unbelievable and unbearable to the extent that many Nigerians have forgotten the sweetness of life. Everything is turning from liquid to concrete. We are even getting used to it, only that we are poor in strength to withstand it.

Today, a Nigerian has taken the insecurity problem, with all its significance less valuable. The government has completely abandoned many people to their fate. It isn’t that we have removed the “in” from the “insecurity” but we are more focused on the gunmen and kidnappers that have all of us; hunger and poverty.

Everything is tough! Citizens are losing hope. To some, it’s lost already. Many prefer death than this tense navigation, in a country that we all know and believe to have excess and abundance of what is needed in terms of wealth and resources. We are very far from thinking of saving, everyone is after what he can get not even today but now.

Inflation has blocked the passage of oxygen to the lungs of Nigerians, removed food from their throats and chased away any positive thoughts from their mind. It’s onto the eyes and ears that people are seeing nothing but what suits and relieves them. The translation of this is that unlawful will be lawful, the strong will rule and the society will turn to a jungle.

Everything is drastically increasing price, and there is no control. You can buy a commodity for ₦10 and in an hour or less, it will be ₦20. Both the parties in the markets aren’t smiling, the transaction is dark as it’s done without pleasure.

Maize, rice, beans, millet, corn and even cassava are above the purchase of a common man, not to talk of meat, fish, milk or sugar. “Balance diet” has since been replaced with “living diet” in Nigeria. People today eat not to be satisfied but to retain their consciousness.

Where on earth can a Nigerian put his humble self?

Everywhere, everybody, this is the discussion, especially family men. These are usually family men with something, no matter how little, doing, what is your thought on those who will wake up in the morning without a single direction to follow?

Begging is now very normal and common, and no one questions. You will hear a person swearing that he and his family haven’t eaten for so long. Food, to pass through the throat and relieve hunger is now the problem of a Nigerian, in fact, a Northerner for that matter.

You will visit a house and come out no one will say “Please eat this”. Wives and children are no longer selecting food. It has reached to the extent that some humans are now eating the foods of animals.

I had to stop and rehear a statement yesterday when I heard someone begging people in a mosque to PLEASE BUY WHAT HE IS SELLING. He sells Qur’an and some other small Islamic books; Ƙawa’idi, Akhdari…, and similar stuff. He stood after Magrib prayer begging; “Don Allah a zo a yi min ciniki, don girman Allah”. For the first time in my life, I come across such type of begging.

I continue to ask myself, please where is the sympathy of our leaders? Where is the empathy of our producers and marketers? Where are the price-controlling institutions? Where are the leaders and where is the government as a whole? Please why are we going through this much? Who have we offended and what has been our offence? Please, are Nigerians entitled to suffering and discomfort? Where are we heading to?

It’snt long that we voted with the hope that things would be softened, pains would be relieved, and tears would be wiped, but the absolute reverse is the case. More and more terrific we are getting every day.

The government is careless. The budget has no direct aiding attention to the common Nigerians. Billions are spent on useless renovations, change of vehicles and leisure trips, but not a single unit directly for the common man of the nation.

And upon all these, one beautiful thing is that no one protested, broke any law, or did something illegal, yet. A Nigerian, as strong as he is isn’t so much complaining of the commodity prices, but the money to buy them. You will always hear; “Allah Ya ba mu abin saya”. See this extreme humbleness, humility and positivity.

To be honest, every Nigerian deserves an award of commendation. We have been navigating through a tough situation with increasing anger and frustration, yet quiet, peaceful, and even managing a fake smile. Weldone fellow countrymen, it’s getting over, it’s getting better, soon by the grace of God.

We urge, with a very loud voice, every Nigerian leader, scholar, producer, marketer, and every other stakeholder to remember that he or she will be accountable for this before God. He or she shall be fully responsible for the dying Nigerians, especially those who have what to do but chose not to do it.

Every stakeholder, from community leaders, councilors, religious figures, schoolers, elders, marketers, and others at the community level, moving to the local, state, to national level, this is the task now! People, move to them. Disturb them until we get their attention.

The government should as fast as possible intervene in these ravaging problems and provide solutions. Aid and humanitarian activities should be given extra priority under trusted custodians. If there is a need, I believe Nigerians will agree to the relocation of any project fund to address this problem. The government should reconsider its decision on the removal of fuel subsidy and all other subsidies it is removing. Nigerians are dying! Focus on Nigerians, focus on their condition, Nigeria will be better. PLEASE ITS URGENT!

Ibrahim El-mu’azzam
elmuazzammail@gmail.com