'Seun Ibukun-Oni, Abuja
DAILY COURIER – The Independent Media and Policy Initiative (IMPI) held a press conference today to address the nation’s economic challenges and to highlight President Tinubu’s efforts to revitalize the economy. In response to the mounting public discontent over the high cost of living, IMPI Chairman Niyi Akinsiju urged understanding and patience as the country navigates through necessary but painful reforms.
The planned nationwide protest in Nigeria is driven by widespread public frustration over the escalating cost of living, marked by an inflation rate of 34.19% in June 2024, with food inflation soaring to 40.87%. The removal of fuel subsidies and the harmonization of foreign exchange rates, key components of President Tinubu's economic reforms, have exacerbated the financial burden on citizens, leading to increased prices for goods and services. Amidst these challenges, the Independent Media and Policy Initiative (IMPI) urges for understanding and patience, highlighting the long-term benefits of these reforms, which include significant debt reduction, improved fiscal management, and advancements in the power and agricultural sectors.
Economic Reforms and Inflation
Nigeria’s inflation rate surged to 34.19% in June 2024, primarily driven by a staggering food inflation rate of 40.87%. The removal of fuel subsidies and the harmonization of foreign exchange rates have further strained the economy, contributing to the depreciation of the Nigerian currency. Akinsiju acknowledged the hardships faced by Nigerians but emphasized that these reforms are crucial for long-term economic stability.
Fiscal Improvements and Debt Reduction
Despite the short-term pain, Akinsiju highlighted several positive outcomes of the reforms. The national debt profile has been reduced significantly from $108 billion to $91 billion within a 14-month period, reflecting a more sustainable debt service-to-revenue ratio, which dropped from 97% in early 2023 to 68% in 2024. Additionally, the federal government has repaid N7.3 trillion to the Central Bank of Nigeria, and the budget deficit has decreased from 6.1% to 4.4%.
Boost in Oil Production and Foreign Reserves
Nigeria’s crude oil production has seen a significant increase, rising from 1.28 million barrels per day in April 2024 to 1.61 million barrels per day by July 2024. This boost in production has positively impacted the country’s foreign reserves, which grew from $32.29 billion in April to $37.05 billion by mid-July, covering 11 months of imports and indicating a stabilizing economy.
Power Sector Developments
The power sector has also experienced substantial improvements. The commissioning of the Zungeru Hydro-Electric Power Station added 700 megawatts to the national grid, and new substations in Kebbi and Lagos have enhanced electricity distribution. The federal government’s payment of N3.3 trillion owed to the power sector has further strengthened the country’s capacity to generate and distribute electricity.
Agricultural and Employment Initiatives
In agriculture, the distribution of improved seeds, fertilizers, and equipment to farmers has generated N309 billion in one year, signaling a revival of the sector. The waiver of import duties on food and $20 billion in foreign investments aim to ensure food security and boost agricultural output. Moreover, the creation of the Ministry of Livestock Development seeks to harness the country’s livestock potential and mitigate farmer-herder conflicts.
The federal government’s employment initiatives are also noteworthy. The ongoing 3 Million Technical Talents programme has provided job opportunities for 30,000 graduates, while the expansion of the National Youth Investment Fund to N110 billion aims to support young entrepreneurs.
Call for Patience and Constructive Engagement
IMPI acknowledged the right of citizens to protest but urged that such actions be grounded in achievable objectives. Akinsiju appealed for patience, emphasizing that the reforms are beginning to yield positive results and warning that disruptions could hinder the economic progress being made.
In conclusion, Akinsiju reiterated the need for collective commitment to the President’s vision for economic growth and prosperity. “It may be slow, it may be painful, but it is certain that as a people, we will witness this upcoming period of economic upsurge and prosperity,” he stated.
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