Recently, the iconic economist, Bismarck Rewane suggested on National Television that one of the best things that Bola Ahmed Tinubu could do in order to kickstart the process of a much needed National rebranding is to be open and honest with the Nigerian populace. It is evident from his 63rd Independence Day address that the President was not listening. Tinubu’s speech was a subterfuge; strong in rhetoric, lacking in substance ; laden with imaginary claims of success!

Consider some the most important policy statements contained in the speech:

1. SUBSIDY REMOVAL.
In trying to justify his decision to do away with petrol subsidy, the president argues that the money accumulated from not sustaining oil subsidy will help to strengthen the economy,and provide infrastructure support funds for States.

The reality presents a totally different picture. Monies recovered from subsidy removal has had no impact on the economy , nor is the amount collected; about 1.6 trillion naira enough to significantly reduce the infrastructure deficit in States.

In fact since the removal of petrol subsidy,the economy has gone into a deeper level of depression. Inflation has risen by 5% from 23% to 28% between June 2023 when subsidy was removed and September 2023. Since Tinubu became President, families have found it increasingly difficult to feed themselves because of the astronomical increase in cost of living. The cost of a 50 kilogram bag of rice rose by about 40% , and the cost of gari: the Nation’s most common staple food stuff, has risen by over 100%.

Transportation cost has gone up so much so that many workers now go to work 3 days instead of the traditional 5 days ,and car owners now take to using public transport because the cost of petrol which jumped from 200naira per liter to 616naira has become prohibitive.

2. GAS POWERED BUSES.

The number of these buses to be deployed is not specified , maybe because Mr President suspects that the idea is laughable,and the declaration that the natural gas powered buses will reduce the cost of transportation is mere speculation.

Nobody knows how much it would cost to train operators of these buses , and how much it would cost to maintain the novel technology.

probably the most disturbing aspect of this proposal is the notion that government will run the project. It is difficult to see how government involvement will not guarantee inefficiency and corruption as in the oil and gas industry operated by Nigeria National Petroleum Corporation Limited ( NNPCL).

3. FOREIGN EXCHANGE.

The President talks about mending the ” broken foreign exchange policies ” , but fails to acknowledge that his parallel exchange policy has been a disaster.

When Tinubu took over the government in May 2023, the naira to the USA dollar at bank rate was 1/ 450. In the open market, the rate was 1/750. Today in just 4 months under Tinubu’s watch, the naira has declined to a historic low ; 1/ 750 (bank rate), and 1/1,000 in the open market. The Nigerian economy is in a free fall !

4. RELIEF PACKAGES TO STATES.

Support funds sent to States for the purpose of providing infrastructure and other critical sectors are like a drop in the ocean. Nobody in any state has felt their impact. It is either the governors have swallowed them as they drink up their Security Funds, or the funds never got to them at all.

This idea of sending funds to States for development is similar to the 5 billion per state palliatives sent to States a few months ago. That round of palliatives came to a mere 200 naira offer per citizen. This had no impact on people’s lives whatsoever.

5. PROVISIONAL WAGE INCREASE.

According to the President, Labour Unions, business leaders and other stakeholders have advised that the Federal minimum wage should be increased. The President’s response to this popular idea reveals his fundamental lack of commitment to the underprivileged of society.

Tinubu’s recommendation of enhancing the federal minimum wage by adding 25,000 naira per month to the minimum wage of 30 thousand naira for the next 6 months is outrageous!

Firstly, if the rate of inflation, and the cost of living index are taken into consideration, a 30,000 naira wage must be increased to 90,000naira.

Secondly, what is the minimum wage earner going to do after the 6 months grace of salary palliative is over ?

And thirdly, the President would need over 39 billion naira to meet this obligation. He would have to go to the world bank or other international money market to borrow again, thus pushing the country into more debt.

In conclusion, President Tinubu’s Address to the Nigerian Nation on the 63rd anniversary of Independence has a lot of ideas on spending, but little to nothing on revenue generation.

The President fails to address the challenges in the oil industry and how he would revamp this sector so that its revenue potential is enhanced. Keep in mind that it is the oil industry which accounts for 90% of the country’s foreign earnings.

Tinubu boasts of a united Nigeria when in reality the 2023 general election shows that the country is as divided as ever along ethnic and political party lines.

The president is asking citizens to bear the pains of suffering under his administration and he appeals to them for cooperation . The fact of the matter is that most Nigerians harbor a deep distrust for this administration. They point to the fact that this President has the largest number of Ministers and Special Advisers and Assistants in Nigeria’s history ; large enough to bankrupt the country.

The President, his Ministers , the members of the National Assembly and the political class in general are living large even in the midst of mass suffering.

In his address to the Nation on the 63rd Anniversary of Nigeria’s Independence, President Tinubu demonstrates a narrow, short sighted approach to the challenges facing the Nation.

Terrorism , banditry, kidnapping, and ritual killings are clearly on the rise, yet Tinubu failed to address the Nation’s alarming Security situation.

Instead of arresting corruption and inefficiency in the oil industry, he removed oil subsidy to the angst of the citizens, and to the detriment of the country’s economy. Instead of devolving power to the States, so that they can develop their own economy, and their own Security system, he has given them handouts and palliatives.

Instead of a commitment to restructure the system through a review of the constitution, he is trying to achieve equity through zonal balancing of political appointments.

This uninspiring speech, and the dismal performance of his administration to date will do nothing to endear Tinubu to the people of Nigeria!

Dr Adetokunbo Pearse, PhD. Public Affairs Analyst. Convener Reset Lagos PDP.

Editor’s Note:

All opinion pieces published on the opinion platform are the opinions of the writers and not necessarily the views of the publishers of The Lagosian Magazine. Thanks.

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