By Halima Imam
Inflation has become the “senior man” of problems in Nigeria, delivering hot slaps to everyone, from business owners to our struggling students who just want to stay in school. With the skyrocketing cost of school fees and transportation, some students have simply given up and dropped out sef. The journey to school has turned into a journey to frustration, as transportation costs and harsh words like ‘if your money no complete why you leave house’ from taxi drivers are now enough to scare even the bravest students back home. All this is happening because our economy is under a kind of fire that only certain presidential policies seem to be adding fuel to.
Now, speaking of fuel, let’s rewind a bit to May 29, 2023, the day Nigerians welcomed a new president. That same day, our dear President Bola Ahmed Tinubu removed the fuel subsidy. Yes, stale news right? Fresh off taking the oath, he hit us with what felt like a middle finger, and then went off, leaving us to deal with the aftermath. Since then, it’s been one policy after another, each one leaving the average Nigerian asking, “Is this guy really here for us or for ‘the other people’?”
You may have heard whispers or even news reports that Tinubu is seen as an “asset” by certain powerful people abi? According to a document by the CIA (yes, we’re name-dropping sources now), Tinubu is their “asset.” Chai, my people, things are happening o! The dots are starting to connect, and what I’m seeing isn’t pretty. His policies seem to be imported straight from the School of ‘Unfiltered Capitalism.’ We, his village people, are expected to crash and burn in poverty, while our president, the “asset,” keeps impressing his international fans or do I say ‘owners’.
But let’s break down one of these capitalist policies: the “floating” of the naira. In simple terms, floating the naira means letting the value of our beloved currency, the naira, dance to the tune of the free market, like a feather in the wind. Before this policy, we had a fixed exchange rate, which meant the Central Bank tried to control the naira’s value. But by floating it, Tinubu decided to let the dollar and naira wrestle it out on the open market, gehn ghen!
Now, guess what happened next? The naira plummeted like a stone in the ocean. Instead of making life easier, it only brought hardship as prices for everything shot up. Nigerians are now spending more naira to buy even the smallest items, while our salaries remain static like Globacom’s network for the longest times.
We’re now left wondering, who benefits from these policies? It sure doesn’t look like it’s us. We, the people, are suffering while outsiders are probably having a good laugh. That’s the horrible reality of our current inflation wahala. We are here, hoping that one day, someone will actually put Nigerians first. Until then, we’ll keep managing in the “sapa” trenches.
Yes, sapa everywhere, our naira floating without life jackets, and our students leaving school faster than new potholes appear on Nigerian roads. Now, I know my people want solutions, not just more gist about how tough things are. So let’s explore how we might get out of this economic mudslide before we all end up permanently stranded.
Removing the fuel subsidy without any backup plan was like switching off the generator in the middle of a football match, it left everyone confused, disappointed, and powerless. Instead of throwing us into the deep end of subsidy removal, the government should have rolled it out gradually. They could’ve used some of the funds to strengthen public transportation and reduce the overall burden. For instance, investing in Nigerian-made public transport would lower fares, creating more jobs and stabilizing transport costs for students and workers alike.
And let’s not forget our oil refineries. Revamping those refineries could drastically cut down the cost of petrol, benefiting both the government and the common Nigerian. If we’re not always importing fuel, the savings alone could do wonders for the naira and our economy. The Dangote Refinery, touted as Africa’s largest oil refinery, promises to transform Nigeria’s fuel industry and reduce our dependency on imported petroleum products, which could stabilize fuel prices and benefit everyday Nigerians. However, this ambitious project has faced opposition from various quarters, including some powerful stakeholders in the petroleum importation business and government-affiliated interests who benefit from fuel import contracts.
Major importers and certain political figures with vested interests fear that a fully operational refinery would reduce their profits, as Nigeria would no longer need to import vast quantities of refined fuel. Allowing the Dangote Refinery to run its normal course without interference could lead to a substantial reduction in fuel prices, provide jobs, and save Nigeria significant foreign exchange. For the average Nigerian, this means more affordable fuel prices, less inflationary pressure on essential goods, and the economic growth that comes with a more self-sustaining fuel industry.
This idea of floating the naira has backfired because, honestly, we floated it without enough safety nets in place. Instead of letting the naira bob around on international waves, a more practical fix would be a managed float, where the Central Bank can step in to protect the naira whenever it starts sinking too low. That way, we’re not completely at the mercy of the dollar.
Also, supporting local industries with favorable policies could decrease our dependency on imports, which is currently hurting the naira. With more Nigerian-made products circulating, we can save our dollars for only the most necessary imports, leaving our economy with some breathing room.
Inflation shouldn’t be the reason why young Nigerians are dropping out of school, but sadly, that’s where we’re at. If we’re serious about building a future for Nigeria, we need government support for students beyond mere promises. Actually providing subsidized student loans, grants, or even transport stipends could go a long way. Let’s create a system where education costs are subsidized based on financial need, allowing more young Nigerians to continue their studies without breaking the bank, or dropping out entirely.
It’s time for us to talk about taxes without the usual eye-service we do. Nigeria has an alarming wealth gap, and taxing the top earners fairly would bring in much-needed revenue. These funds could then be directed towards social welfare, education, and even healthcare. But here’s the twist, we need to enforce it effectively without the usual leakages and corruption. A fair and enforced tax system could create a more balanced economy and relieve some of the financial pressures on regular Nigerians.
Nigerian politicians enjoy some of the highest salaries and allowances in the world, which seems almost criminal when our economy is in such shambles. If the government were serious about alleviating inflation, they’d look inward and cut down on excessive spending. Imagine diverting even a fraction of those funds into the education sector, healthcare, or small business support. It’s high time we saw genuine sacrifices from our leaders, not just empty speeches.
Nigeria is home to some of the most innovative minds, and empowering small businesses could transform our economy in ways that foreign loans or oil dependence never will. By providing tax breaks, training, and financial support, the government can help local businesses thrive. This would lead to job creation, increase local production, and, ultimately, reduce the need for imported goods. It’s time we start seeing our local talents as assets – not just “capital” from abroad.
Nigeria has been through tough times, but we’ve survived because Nigerians know how to manage. But haba, even managing has limits. Inflation doesn’t have to be our final chapter. If the government prioritizes people over profits, we might actually make headway. But until that becomes reality, let’s keep calling out the policies that don’t work, keep demanding better, and let’s remember to vote wisely next time. After all, na who wear shoe know where e dey pain am.
