Tinubu’s Interventions Fall Short in Easing Nigeria’s Economic Hardship in H1 2024

President Bola Ahmed Tinubu’s efforts have seemingly fallen short of easing Nigeria’s worsening economic hardship in the first half of 2024, despite the government’s Renewed Hope Mantra. This was the consensus among economists and financial experts in separate interviews with NIGERIA NEWS 247.

Tinubu, who celebrated his first anniversary in office on May 29, 2024, has faced challenges in delivering a sense of hope to Nigerians. This is despite recent measures, such as the Federal Executive Council’s approval of N555 billion for disbursement to 100,000 families, with each receiving N50,000 for three months.

In October 2023, the President also approved a ‘Conditional Cash Transfer’ under the then-minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu. This initiative, part of a $800 million World Bank loan, was launched by Tinubu on October 17, 2023.

Additionally, the government recently approved zero tariffs, excise duties, and Value Added Tax on specialized machinery, equipment, and pharmaceutical raw materials to support local production of essential healthcare products. Other fiscal measures include a $3.3 billion crude oil-backed prepayment facility from Afreximbank, $2.5 billion World Bank loans to boost Nigeria’s foreign exchange supply, and efforts by the Presidential Tax and Fiscal Policy Committee to increase taxes.

Despite these interventions, Nigerians continue to suffer from high headline and food inflation, which rose to 33.95 percent and 40.66 percent respectively in May 2024. The country’s debt burden also increased to N121.67 trillion by the end of March 2024. In the first quarter of 2024, Nigeria spent $1.12 billion servicing foreign debt on a revenue of N3.94 trillion. Meanwhile, the Naira weakened to N1508.99 per dollar in the official market on Monday, despite several Central Bank policies, including the discontinuation of the Price Verification System Portal for importers.

Financial expert and CEO of SD & D Capital Management, Gbolade Idakolo, told NIGERIA NEWS 247 that Tinubu’s policies have not alleviated the hardship on Nigerians. He criticized the effectiveness of welfare policies and questioned the criteria for determining grant eligibility. Idakolo also pointed out that continuous high food inflation and the skyrocketing cost of living undermine these welfare measures.

“The fiscal policies of Tinubu’s government in the first half of the year have not helped to alleviate the hardship introduced by its monetary policies. This has led to the unbearable situation the country finds itself in,” he stated.

Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise (CPPE), acknowledged the government’s numerous policies but emphasized the need for more impactful measures. He suggested increased fiscal interventions in the agro-allied industry, construction, iron and steel, and mining sectors, recommending direct support to farmers.

Prof. Godwin Oyedokun of Lead City University in Ibadan highlighted the recent N555 billion cash disbursement as a significant fiscal measure. However, he warned that injecting large sums of money into the economy could worsen inflation if not accompanied by measures to increase supply and stabilize prices.

“The fiscal measures introduced by President Tinubu, including the N555 billion cash transfer program, demonstrate a proactive approach to addressing the immediate economic challenges faced by Nigerians. However, the success of these measures depends significantly on coordination with monetary policies to manage inflation and ensure overall economic stability,” Oyedokun told NIGERIA NEWS 247.

He concluded that a holistic approach, combining short-term relief with long-term economic reforms, is essential for addressing the underlying issues causing inflation-induced hardship and achieving sustainable growth.