Recently, the Tinubu administration’s propaganda machine has been working overtime to falsely convince Nigerians that their economic policies are successful, that the worst is over, and that Nigerians will soon start feeling the positive effects.
To persuade (or deceive) Nigerians that their policies are effective, they often point to the increased revenue in Naira generated as a result of their policies, while ignoring the fact that this uptick is largely due to the Naira being devalued by approximately 300%. As a result, the government now receives more Naira for revenue denominated in dollars, while ordinary Nigerians bear the brunt of the devaluation by paying up to three times more for goods and services.
Aside from the increased Naira revenue stemming from the currency devaluation, which effectively acts like a hefty tax on Nigerians, the government also discontinued petrol subsidies. According to the Minister of Finance, removing the subsidy saves the country N20 trillion annually.
One might expect that, given the poor state of the economy inherited from the ineffective and clueless Buhari administration, along with the heavy debt burden, the Tinubu government would leverage the increased Naira inflow to reduce debt and cut spending to eliminate the deficit and strengthen the economy. However, the profligate Tinubu administration had other plans.
Immediately after removing the fuel subsidy, the administration did not prioritize easing the suffering of ordinary citizens. Instead, it allocated an additional N70 billion to the National Assembly for the purchase of luxury SUVs for lawmakers. The judiciary was also given a supplementary budget of N30 billion, even as they were still hearing cases related to the flawed elections that brought in the current administration.
Having ‘settled’ the judiciary and legislature, Tinubu then embarked on a spending spree—ordering a larger, more luxurious presidential jet to match his inflated ego, all without budget approval from the senate. If anyone doubted his penchant for reckless spending, these doubts were dispelled when the 2024 appropriation bill was presented, revealing provisions for a presidential yacht, billions for renovating presidential villas, billions spent on a presidential fleet of vehicles, and an increase in the controversial and unconstitutional constituency allowance to between N1 and N2 billion per legislator.
Adding to the reckless spending, the administration awarded a N15 trillion contract for the Lagos to Calabar coastal project to a company owned by someone the president acknowledged as his business partner, without any competitive tender or environmental impact assessment.
All this reckless expenditure has driven the country’s debt from N89 trillion— inherited from the Buhari administration— to N152 trillion today, with little to show for it. Meanwhile, the number of Nigerians living in poverty has soared from 85 million in 2023 to over 135 million now.
It may be lost on this irresponsible administration that the purpose of government is to ensure the security and welfare of the people, not just to enrich those who hold power.
Supporters of the current government often say we should give them more time to see results. However, those of us who understand how the economy works know there is little hope given their current trajectory.
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The situation is like being in Abuja with Lagos as your destination, but your driver heading toward Maiduguri. When you point out the mistake, instead of turning around, he insists he will soon reach Lagos even though he is going in the wrong direction.
For Nigeria’s economy to grow, the government must drastically cut spending, eliminate the deficit, and allow more money into the financial sector to fund productive activities. Unfortunately, the government is doing the opposite. Until they reverse course and start heading in the right direction, real progress seems unlikely.
By Kunle Oshobi (Head of Strategy and Planning of the Narrative Force)
