May Day
Atiku Abubakar, the presidential candidate of the Peoples Democratic Party (PDP) in the 2023 general elections, has critiqued President Ahmed Tinubu’s first year in office, claiming it hasn’t produced tangible results due to a lack of implementation planning for his reforms.
In an article released on Tuesday, Atiku recalled President Tinubu’s promises on May 29, 2023, to “remodel our economy to bring about growth and development through job creation, food security, and an end to extreme poverty.” Tinubu also spoke of growing the economy to US$1 trillion in six years, ending misery, and providing immediate relief from the cost-of-living crisis.
Atiku noted that these promises initially gave Nigerians hope after eight years of economic struggles under former President Buhari. However, he argued that Tinubu embarked on a series of policies without laying out clear plans for their implementation.
Policies Introduced:
- Elimination of PMS Subsidies: In May 2023, Tinubu removed fuel subsidies.
- New Foreign Exchange Policy: In June 2023, the Central Bank of Nigeria (CBN) unified multiple official FX windows into a single market.
- Monetary Policy Tightening: Reduction in Naira liquidity and an increase in monetary policy rates.
- Introduction of Cost-Reflective Electricity Tariff and Cybersecurity Tax: Additional policies followed in quick succession.
Critique and Consequences:
Atiku claims these actions have worsened Nigeria’s macroeconomic stability, making the economy more fragile. The former Vice President highlights that joblessness, poverty, and misery have exacerbated since Tinubu’s policies were implemented. He points out that Nigeria, once Africa’s leading economy, now lags behind Algeria, Egypt, and South Africa.
Atiku expressed his concerns about the downside risks of implementing reforms without sequencing and proper planning, describing the approach as “trial-and-error economics.”
Key Areas of Concern:
- Economic Prosperity: Atiku argues Tinubu’s policies have not created prosperity but have instead increased poverty and bankrupt businesses. He mentions the severe cost-of-living crisis with inflation rates at 33.69%, food prices soaring to 40.53%, and substantial increases in the costs of basic goods and services.
- Business Environment: The private sector has been adversely affected by rising input prices, higher energy and borrowing costs, and exchange rate issues. Notable companies, including Unilever and GlaxoSmithKline, have exited Nigeria, citing operational challenges.
- Foreign Exchange Policies: Despite unifying the exchange rate, Nigeria’s trade balance has not improved significantly. The devaluation of the Naira has not enhanced the competitiveness of local producers or boosted exports as expected, leading to a growing trade deficit.
- Foreign Investments: Tinubu’s policies have not attracted the anticipated foreign investments. FDI inflows have declined by 26.8%, indicating a lack of trust and confidence in Nigeria’s leadership and economic policies.
Atiku concludes that Nigeria’s economic woes have multiplied under Tinubu’s leadership, urging for a more strategic and planned approach to policy implementation.
Investigative Analysis by Alaro of Nigeria
