As Cost Of Living Continues To Rise -By Mustapha Pambegua

The recent protest in some parts of Niger, Kano and Ogun states over the rising cost of living did not come to many nigerians as surprise. Many nigerians saw it coming. There were Disturbing signs which emerged last two years on the likely rise on the cost of living in the country. For instance, the food and Agricultural Organization (FAO) and other organizations had predicted looming hunger in the country. Despite these warnings,our policy makers have not rolled out adequate measures to address the situation. While the outbreak of covid-19 pandemic in 2021 had disrupted the economy of many countries of the world including Nigeia, it did not teach any lesson to our leaders. The post covid-19 era witnessed corruption and the mismanagement of public funds. Many intervention programs particularly in agriculture sector geared towards food security were marred by corruption. Until the emergency of Tinubu’s administration and the suspension of Director General of NARSAL,a subsidiary of CBN, little was known on how funds meant for intervention were outrightly looted.

Also, the ministry of humanitarian disaster management and social development,created by the immediate past administration of Muhammadu Buhari is being investigated. The former minister,Sadiya Umar Faruk, was alleged to have diverted funds meant for alleviating poverty in the country.

There are other contributory factors to the current inflation and cost of living in country such as:

devaluation of naira, worsening insecurity in farming communities; increase in the cost of production;fuel price increase; corruption; public debt; hoarding;high taxes; increase in public spending; high exchange rate etc. On serious note,these factors have contributed greatly towards the current food crises in the country. There is the urgent need for government to addres the underlying causes of cost of living and come up with short, medium and long term plans to address it. While the release of 102,000 metric tons of assorted grains as directed by president Bola Ahmed Tinubu may temporary provide relief to many nigerians if judiciously channeled,the high rate with which inflation reduces purchasing power of nigerians call for more urgent actions.

What actually triggered the current cost of living is the sudden removal of fuel subsidy and unification of dollars exchange rate by Tinubu’s administration. Subsidized Premium motor spirit (PMS) or petrol is the livewire which sustain nigerians lives. Infacts, subsidy which government grants is what stabilises the price of good and services in the country. With the erractic power supply across the country, many companies resorted the use of diesel or petroleum to produce good and services. By increasing pump price,one will expect corresponding increase in the cost of production and transportation. No wonder, nigerians grapple with skyrocket prices of essential goods after the removal of fuel subsidy. Additionally, for an import depended country like Nigeria, liberalization of dollars has seriously affected importation. The importers find it difficult to get forex supply at cheaper or official rate. This has affected the price of imported goods and services in the country.

While the rise of cost of living is a global phenomenon,the three tiers of government-Federal states and local governments-need to sit up,re-stategise and roll out more intervention programs targeting larger population. The removal of subsidy has led to increase in revenues generation and distribution in the country. Evidence is the high revenues being shared by FAAC monthly. It is quite unfortunate that,state governors are doing little or nothing to bring succour to the suffering people, inspite of receiving billions of naira from the federation account. Many states governors failed or poorly shared the first trench of palliative released to them by the federal government last year. Moreover, government at all levels should quickly implement living wage to their workers. The current take home (wage) is pitiable and hardly meet up the demand of majority workers amidst galloping inflation in the country.

The Tinubu’s administration should convey an economy submit and assemble economy experts to advise on how to navigate the current economy tumultuous. These experts should also help us with comprehensive blue print for robust economy growth. Nigeria should embrace home grown economy policies. The prescription of Bretton wood institutions have failed to take our economy to eldarado of sorts. The structural Adjustment policies (SAP) implemented by Babangida military government in the early 80’s is an evident of how our once flourishing economy was ruined through shoddy privitization, devaluation of currency and corruption. If SAP with all its beautiful sing-song in the 80’s could not take the country to nirvana, the Bretton wood policies will not change anything in our democratical setting. Our policy makers should stop swallowing any policies push to them hook,line and sinker. The policies need to be vetted, reviews and reflect the yearning and expectations of nigerians.

IBRAHIM MUSTAPHA PAMBEGUA, KADUNA STATE 08169056963.