Nigeria: Tinubu announces new economic measures to avert nationwide protests

Bola Ahmed Tinubu thanks his supporters after he was declared winner in Nigeria's presidential election, at the Party's campaign headquarters, in Abuja, Nigeria March 1, 2023. Photo: Reuters

ABUJA, Nigeria - Nigerian President Bola Tinubu has announced a series of economic measures to ease the high cost of living facing the citizens in Africa’s most populous nation.

This comes at a time when labour unions threatened protests to demand more action. Several government policies were introduced by Tinubu since he took office in May this year.

Among the policies was the ending of decades-long gasoline subsidies that President Tinubu said favored the rich, but the decision has more than doubled the price of gas, causing a sharp spike in prices of food and other essential commodities.

 In a state broadcast the Nigerian head of state said he understands that Nigeria’s economy is going through a “tough patch” but added the government has saved more than $1.16 billion since the subsidy was scrapped in late May. Past funds for the subsidies were “being funneled into the deep pockets and lavish bank accounts of a selected group of individuals,” he added.

 “What I can offer immediately is to reduce the burden our current economic situation has imposed on all of us,” the Nigerian leader said as he announced incentives and credit facilities for businesses, many of which would be implemented over the next year.

The hardship has squeezed many in the country of more than 210 million people which already had been struggling with record inflation and poverty rates. Many businesses have shut down and more Nigerians are trekking to work, unable to afford increasing transport fares.

While the doctors in Nigerian hospitals have embarked on strike to demand better welfare, Nigeria’s labor unions said they will hold protests on Wednesday to demand more actions from the government and improved social welfare programs for their members, most of whom they said now spend at least 70 percent of their salaries on transportation.

 President Tinubu admitted the government was not fast enough in introducing measures to cushion the effect of the subsidy removal and requested more patience from citizens.

 “The federal government is working closely with states and local governments to implement interventions that will cushion the pains,” he said.

 Some of the interventions, according to Tinubu, include the provision of $1.16 million credit to each of 75 manufacturing companies over the next year and the provision of $145 million in the form of grants and loans to small, medium-sized enterprises and other businesses in the informal sector.

The Nigerian leader said he has ordered the release of 200,000 metric tons of grains to households across the country to help stabilize the price of food while 225,000 metric tons of fertilizer, seedlings, and other inputs are being provided to farmers. At least $232 million would also be invested in agriculture to boost farming, he said.

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