As Nigerians grapple with escalating food prices, stagnant wages, and widespread insecurity, the absence of a clear and effective economic strategy from the government has never been more evident.
The latest inflation report from the National Bureau of Statistics (NBS) for May 2024 paints a dire picture, with overall inflation rising from 33.69percent to 33.95percent and food inflation increasing from 40.53percent to 40.66percent.
Despite the Central Bank’s efforts to tighten monetary policy, raising the Monetary Policy Rate (MPR) by 750 basis points from 18.75percent to 26.25percent, these measures have done little to stem the tide of rising costs. This persistent economic turmoil begs the question: What economic methodology is the government using, and why is it failing?
The situation on the ground is becoming increasingly untenable. Basic food items are becoming prohibitively expensive, forcing Nigerians to seek alternative ingredients. A stark example is the price of tomatoes, which have skyrocketed to 1,000 Naira for just four smaller pieces.
This price surge has led some families to use carrots and cucumbers as substitutes in cooking. This desperate improvisation highlights the severity of the food crisis and the extent to which Nigerians are struggling to afford basic necessities.
The public health implications of this economic crisis are equally alarming. According to the Nigeria Centre for Disease Control and Prevention (NCDC), there have been 1,141 suspected cases of cholera, with 65 confirmed cases and 30 deaths.
The outbreak is exacerbated by improper solid waste disposal, which significantly increases the risk of cholera outbreaks, especially during the rainy season when flooding spreads contaminated water, according to some researchers. The lack of affordable medicine makes it difficult for those affected to receive adequate treatment, further reflecting the broader economic instability where even essential healthcare becomes a luxury that many cannot afford.
Q: “Basic food items are becoming prohibitively expensive, forcing Nigerians to seek alternative ingredients.”
Labour wages remain an unsettled issue, compounding the economic hardships faced by Nigerians. Despite the rising cost of living, an agreement has yet to be reached between the government and labour unions on new wages, leaving workers struggling to make ends meet.
Insecurity is another critical issue, with farmers unable to access their fields due to the threat of violence. This insecurity disrupts the food supply chain, leading to shortages and further driving up prices.
The onset of the rainy season brings additional challenges. Flooding is likely to disrupt already strained food supply chains, exacerbating food scarcity and driving prices even higher.
The geopolitical tensions between Russia and Ukraine have also had a ripple effect on global food supplies, contributing to the crisis in Nigeria. These combined factors create a perfect storm of economic hardship, with no clear end in sight.
In this context, the government’s lack of a coherent and effective economic strategy is deeply concerning. The current measures, including the aggressive tightening of monetary policy, have failed to deliver the desired results.
Inflation remains stubbornly high, and food prices continue to soar. This raises critical questions about the efficacy of the government’s approach and the underlying economic principles guiding its policies.
Nigerians are rightfully demanding answers and accountability. The economic crisis is not just a matter of numbers and statistics; it is a lived reality that affects millions of people daily.
The government’s inability to provide a clear roadmap for economic recovery is eroding public trust and exacerbating social unrest. President Bola Tinubu and his administration must recognize the urgency of the situation and take decisive action to address the root causes of the crisis.
A multifaceted approach is required to stabilise the economy and alleviate the suffering of Nigerians. This should include targeted interventions to support farmers and boost agricultural productivity, measures to improve food security, and policies to address the high cost of living.
Ensuring that labour wages keep pace with inflation is also crucial to protect the most vulnerable segments of society.
Moreover, the government must prioritise transparency and communication, providing clear and consistent updates on its economic strategy and progress. This will help rebuild public trust and demonstrate a commitment to addressing the crisis head-on. The current opacity and lack of direction are not only ineffective but also damaging to the nation’s morale and cohesion.
The Nigerian government must heed the calls of its citizens and take bold, decisive steps to address the economic crisis. The current trajectory is unsustainable, and without a clear and effective strategy, the situation will only worsen.
It is time for President Tinubu and his administration to rise to the challenge and implement policies that will bring relief and stability to the nation. The future of Nigeria and the well-being of its people depend on it.
