By Kelechi Deca
GenZ Nigerians have this refrain that “if anyone explains Nigeria to you, and you understand it, then something is wrong with you”.
That belief captures the intricacies, and complexities of most things Nigerian.
Basic policies that have worked elsewhere suddenly becomes complex as soon as they are domesticated for Nigeria. From the issues regarding petroleum pricing to adoption of compressed natural gas. Then we all became power sector engineers, taking crash courses on factors that could lead to the daily failures of the national grid.
Presently, we have all been turned into energy market experts with the recent announcement by the Minister for Power, that government will raise tariffs in the energy sector. This would probably be the sixth time they are adjusting the unit cost for power since this administration came into office.
The only language the administration of President Bola Ahmed Tinubu seems to understand is taxation. Tax whatever talks, walks, runs, breathes, and hears. Tax also, whatever has a name, location, whether movable or immovable as long as it is identifiable. Tax it. That’s the law of instrument taken to another level. Little wonder GenZ people say that surviving in Nigeria should earn one a lifetime award.
I was studying the latest figures from the National Bureau of Statistics’ (NBS), and I wondered what fuels the optimism being mouthed around government circles. This government unarguably has scored so many ‘firsts’ that they deserve an award. From being the first to have fuel sold above N1000 to being the first to push naira over the N1000 threshold to the dollar.
Inspite of the abracadabra they did on inflation figures through rebasing, the World Bank has warned that inflation may kiss the higher end of 30s if nothing gives between now and end of third quarter.
Regretfully, the economic management team is completely oblivious to the negative effects their ill-advised policies are having on the overall economy. A country that is presently experiencing its worse spike in cost of living in 30 years is busy churning out policies that are worsening the economic situation, and pushing millions into extreme poverty as the economy fails to show any sign of recovery.
Proponents of the stifling economic policies cajole us that these are tough but necessary decisions that must be taken to turn the economy around. However, nobody seems to be cognizant of the overall impacts of these harsh economic policies on the people. The vast majority of people who fall out of the economic circle and are destined to live in poverty—many of whom may never be able to recover—are ignored.
There is a Yoruba proverb that challenges the rationality of using a medication to treat a headache that necessitates head amputation. During the World Economic Outlook (WEO) presentation last month in Washington D.C, Pierre-Olivier Gourinchas, the International Monetary Fund (IMF) Director of Research and Economic Counsellor said as much. He cautioned that “excessive austerity could hamper economic recovery efforts” and emphasized the necessity of striking a balance between fiscal and monetary measures in order to address issues of inflation and debt.
He said, “You have to be careful because most countries have important needs when it comes to spending, whether it is about essential services, healthcare, or public investments. If you try to do too much too quickly, you might have an adverse impact on growth.”
We don’t need the World Bank or the IMF to inform us that the economy is in bad shape and that economic activity has slowed down. In addition to the hundreds of minor traders who have turned their money into housekeeping funds in order to live, the number of businesses that have shut down in the last two years is rising.
We cannot deny the impact of high energy cost on the economy. From electricity to fuel by the high cost of fuel. While high energy cost has negatively impacted the manufacturing sector, high fuel cost has affected the movement of people and goods, and most importantly, the cost of logistics, especially transportation of food from the hinterlands to the cities.
Since we still live in a society where in-person interactions foster stronger bonds, policies that restrict people’s freedom to travel also have an impact on their economic activities. Furthermore, almost all additional ancillary expenditures are directly impacted by high transportation prices. The more people are pushed out of the economic circle, the more poverty and economic devastation we will have.
Government and quasi-government organisations throughout Nigeria subject Nigerians to some of the most egregious economic dehumanizing policies on a daily basis. The phrase “feeding from hand to mouth” has never made more vivid sense than the lives of average Nigerians, who currently live day to day.
Kelechi Deca, a journalist, and public affairs analyst writes from Lagos.
