Federal Government Differs As NLC Claims Reforms Are Harming Nigerians-Tinubunomics Sparks Controversy

In a demonstration of dissent, the NLC and Trade Union Congress organized a street rally to express their objection to the escalating cost of living attributed to government measures, particularly the removal of the petrol subsidy.

To tackle the forex crisis and enhance liquidity, the government, facilitated by the Central Bank of Nigeria, eliminated the various exchange rates, consolidating them into the Investors and Exporters rate.

Nevertheless, this policy shift has not produced the anticipated outcomes, as the forex crisis, originating during the Muhammadu Buhari administration, has intensified, resulting in the national currency exchanging for over N1,400 per dollar.

On Thursday, the president of the NLC criticized the Federal Government’s policies, asserting that Nigerians were bearing the brunt of the economic initiatives spearheaded by the President. Speaking on the theme, ‘Tinubu’s Economic Reforms: Gainers and Losers,’ Ajaero cautioned against the implementation of IMF policies, emphasizing that adhering to the advice of Bretton Woods institutions had not been beneficial for Nigeria.

Addressing the audience, which included figures such as former Chairman of the Independent National Electoral Commission, Prof Attahiru Jega, Deputy Governor of Katsina State, Faruq Jobe, ex-Presidential spokesman, Garba Shehu, Senator Shehu Sani, and others, he argued that many of Tinubu’s reforms were reflective of the policies advocated by the World Bank and the IMF.

He pointed out the increase in fuel pump prices, asserting that it was a concept advocated by the World Bank.

“Reforms are meant to be accepted by the people and such reforms are supposed to yield results for the people. When it is the other way around, it becomes information. Many of the tinubu’s reforms are just policies of the World Bank and the IMF,” he said

As a panelist during the event, the NLC chairman emphasized that it was appropriate to assess the indicators of success and failure at this juncture. He expressed that the general populace was on the losing end, citing the nearly unaffordable cost of fuel for Nigerians. According to him, the price of fuel, which previously stood at N187 per liter, has surged to N700 per liter, while salaries have remained stagnant.

“Some of the policies we are talking about today seemed to be emergency policies. I am going to talk about how the policies affect the common man on the street. I am here as a representative of the losers,” stated.

Ajaero expressed sorrow over the closure of businesses in the country, underscoring his lamentation that Nigeria holds the unfortunate title of being the poverty capital of the world.

Addressing Tinubu’s pivotal economic strategies of subsidy removal and naira devaluation, Ajaero highlighted that it took eight years for the naira to depreciate from N260 per dollar to N700 per dollar during the tenure of former President Muhammadu Buhari. However, he pointed out that under Tinubu, the national currency plunged from N700 per dollar to N1,350 per dollar within a mere six months.

Ajaero also voiced concern about the escalating debt burden of the country, posing the question, “Who do you think will pay it?”

“I know they tell you that you have to suffer a bit so you can gain, but it has been the same story since forever,” he said, as he called for a review of all government policies to know what works and what does not, noting that the country’s situation is getting worse.

“I think the Tinubu’s administration should look at all these things holistically so we have a good master plan to drive Nigeria, we need policies to keep people in their jobs and not the other way around. The situation will continue to worsen until there is a policy reversal,” he concluded.

He argued that the measures implemented to mitigate the impact of the fuel subsidy removal have not been experienced by the populace. Contrary to assisting Nigerians, the labor leader maintained that Tinubu’s policies have adversely affected the workforce, causing deformities in their economic well-being.

He noted, “Unfortunately, we do not see courage in actions that pillage the people, rather, we see cowardice in bowing to the pressures of foreign interests (IMF and World Bank) against that of your people. That is not what reforms look like but it is exactly what the path to deforming a people and a nation looks like.’’

In reproaching the President, who has faced accusations of overseeing an extensive and extravagant government, the NLC leader urged him to cut down on the cost of governance. He emphasized that any reform lacking a deliberate reduction in the cost of governance in Nigeria by at least 50 percent would be deceptive, highlighting the critical importance of addressing this fundamental issue.

Speaking further, he stated, “You therefore ask yourself, how did we come to this sorry pass? Why have they refused to allow the refineries to work? Who are those sabotaging the refineries and thus our economy? Why is it difficult for the government to repair or refurbish its refineries?’

“One of the controversial measures undertaken by the Tinubu administration was the hike in the price of petrol in the guise of the elimination of subsidy on Premium Motor Spirit.

“The purported aim was to reduce government spending and redirect resources to other critical sectors. What are the immediate and long-term effects of these measures on the economy, inflation rates, and the cost of living.’’

“The truth is that when you find out those who are benefitting from the shutdown of our refineries, they are the ones benefiting from the grievous distortions in the downstream sector of the oil and gas industry in Nigeria,” he added.

He enumerated inflationary pressures, elevated transportation costs, and the overall cost of living as some of the tangible effects experienced by Nigerians. He referred to the surge in the prices of essential goods and services, attributing it to the escalated costs associated with transportation.

“Many businesses have been shut down and many more are planning to leave as a result of the increasingly hostile operating environment for businesses in Nigeria.

“The palliative economy or the feeding bottle economy which runs on the creation of hardship then giving of a little token to cushion its effect has created a league of treasury looters and they are smiling to the bank.

“The various scandals as witnessed during the last government where billions of dollars were frittered away in the name of humanitarian affairs have worsened; the huge sums in private accounts and the flights from Abuja to Lokoja are still with us,’’ Ajaero stated.

Stopping short of completely dismissing the reforms of the current administration, the NLC boss observed that as long as the majority of Nigerians continue to live in poverty, there is little to celebrate or applaud.

Ajaero also chided the Federal Government’s move to sell off public assets, saying, “They are talking about privatization; 99 percent of privatized companies have disappeared. And we are sustaining it. You sold your house for N2m and you gave the buyers N10m to repair it. That is a prodigal economy.’’

Citing the situation in the power sector, he added, ‘’All the Discos have been taken over by banks. The banks are running the power sector and you want it to work? I think the Tinubu government should look at all this holistically.’’

In response to Ajaero’s critiques, the Minister of Information and National Orientation, Idris, reassured Nigerians that President Tinubu’s vision aimed to bring relief to citizens, rejuvenate the economy, and restore prosperity to the country. He requested additional time for the policies to yield positive outcomes.

He also affirmed that the N35,000 wage award, currently being implemented by the Federal Government, would be disbursed to workers.

Idris stated, “The N35,000 wage award, I know that there were some technical disruptions in the way it was implemented but I can tell you that the President is committed to ensuring that every kobo meant for the wage award is paid to entitled federal workers. The Federal Government has insisted that it has committed.

“There was also the issue of the palliatives that we talked about. Now because fuel subsidy almost went away abruptly, there was the need to cushion that effect in the short term. The government is not saying every economic policy will be an emergency one or the one driven by palliative.

“What it sought to address was important that people have an immediate cushion to what was happening before a long-term solution was proffered. So it’s not all gloomy, it is not all emergency.

“Of course, if you have an immediate shock, you must have first aid before a long-term solution is being proffered and that is being done jointly with labor itself.’’

Shamsudden Usman, the former Minister of Finance and National Planning who presided over the event, remarked that the common Nigerian appeared to be on the losing end with the policy of fuel subsidy removal.

“Where are the palliatives? This is a valid question to ask. How well are they being implemented? Buses were promised, but where are they?

“It is not too early, but one thing the President is showing is that this is a sensitive government and he is listening. When people complain about certain things, the government listens and takes action,’’ he counseled.

He characterized the frequent breakdowns of the power grid as a disgrace, highlighting that such occurrences were unprecedented.

Onanuga, the President’s Special Adviser on Information and Strategy, conveyed that the economic reforms initiated by the President over the past eight months were pro-Nigeria, to stabilize the economy and reinstate the depreciating naira to its true value. He expressed confidence that Nigerians would soon recognize the wisdom behind Tinubu’s policies.

Onanuga said, “If anybody says they do not see any discernable economic blueprint that is pro-Nigeria, then the person is living somewhere else.

“Since the President began his reforms, yes, there have been problems and this government has been up and doing trying to improve things, to ameliorate whatever problems emerge and it is still doing all that.

“The government believes that the policies it introduced are in the best interest of our country. The government is aware that yes, there will be temporary pains, but those pains will not last for long. Soon, people will see the wisdom in what has been done.”

The Presidency defended the removal of the fuel subsidy, asserting that it did not bring any tangible benefits to Nigerians.

“Is it about subsidy removal? Everybody knows that before Tinubu came to office, some Nigerians were making billions and billions from smuggling what we call subsidized petrol, and at the end of the day, the government was made to pay for the subsidy which Nigerians were not enjoying.

“President Buhari had already planned it by law to remove that subsidy by the end of June 2023 anyway.

“What Tinubu did was just to accelerate the time. Instead of waiting for one whole month of another dreaded waste of money, he said, there is no point in waiting. It is better to do it once and for all from day one,” the presidential aide explained.

Onanuga characterized the currency reforms, particularly the unification of the exchange rate and efforts to strengthen the value of the naira, as a “work in progress.

He noted, “Everybody knows that is still a work in progress. The figure we got is that when (ex-CBN Governor Godwin) Emefiele was there, Nigeria was spending about $1.5bn every month shoring up the value of the naira viz-a-viz other world currencies.

“The government decided to say there is no point in subsidizing again so that Nigerians can get cheaper dollars. You know, the process was being abused through round-tripping and all that. So, what we are doing now is work in progress.”

He referenced previous statements made by the CBN Governor, Yemi Cardoso, who discussed efforts to stabilize the local currency during a forum organized by the Nigeria Economic Summit Group.

“Only yesterday, the CBN Governor talked about the plans of the CBN in conjunction with the Ministry of Finance and NNPCL to ensure that the naira gets its real value.

“What we have now is artificial from the black market rating. It is just the work of speculators. Nigerians are even speculating on their currency, not having faith in our naira.

“The CBN has said it is going to put in place a multi-pronged approach to ensure that the naira gets its real value. In the opinion of the CBN, the naira is undervalued,” he said

He stated, “The APC Tinubu-led administration does not have any economic policy that can turn things around for Nigerians. Indeed they don’t have one, if they did, we would have seen different policy directions, they would have been turning them out.

“We haven’t seen much of what this government is going to do. Since the withdrawal of subsidy, Nigerians have been thrown into hardship and penury, but if there is concomitant policy direction to assuage the suffering of Nigeria, it would have made sense and by now we would have seen it.’’

“Increasingly, every morning, Nigerians are getting deeper into poverty, insecurity and penury. So the economy is going through the hardest of all times.

“Isn’t that clear that all the foreign organizations that are teleguiding them have failed? So, the indication is that yes, there is no direction, IMF/World Bank and Western worlds are teleguiding the APC administration.’’

The spokesperson for the Labour Party, Ifoh, asserted that the purported corruption taking place within the government would lead the nation into further economic crises.

He stated, “They removed the subsidy, yet failed to cut down the cost of government. They are running a flamboyant government, while Nigerians are in hardship. From the appointments they made, you can see that cronyism was their major driving point. And some of them are already practicing corruption to fill their pockets.’’