Low Hanging Fruit Before President Tinubu -By Chiechefulam Ikebuiro

The immediate aftermath of the removal of fuel subsidiy and the unification or should I say floating of the Naira, has brought about anticipated hardship and is now being felt by Nigerians. While many recognized the necessity of these actions for the long-term development of the nation, the immediate impact on the cost of living has been severe.

For years, we operated a system of heavy subsidies- fuel, education, electricity, forex et al. Truth is, this approach remains unsustainable and inhibits true economic growth. While the removal of fuel subsidy and currency unification may bring short-term pains, they are essential steps toward building a more promising future for Nigeria. Apart from creating an enabling environment for private sector investment in the downstream sector, leading to the development of local refineries and the creation of jobs, the government (if it is transparent and accountable) is also able to free up resources that would have been spent on subsidy to invest in other critical sectors – education, healthcare, security and other forms of infrastructure.

It is however incumbent on the government to take proactive measures to mitigate the immediate hardship that we currently face as the reality of the situation is hitting hard.

In a previous article, I had criticized the lack of empathy from Government on all quarters fuelled by the perceived reluctance to slash frivolous spending despite the widespread hardship. It is worth reiterating that governments at all levels need to prioritize their spending! The outrageous allowances of federal lawmakers have not been spoken well about! They warrant critical scrutiny and public discourse-Topic for another day

That said, the President now needs to move with immense urgency. In fact, the urgency he used to remove subsidy on day one during his inauguration should be mirrored now! And by the way, I am all for removing the subsidy from day one. Any sort of delay of the ‘doomsday’ would have been cowardice.

To alleviate the suffering, urgent measures must be taken. The President must consider some low hanging fruits. I have always advocated for an increase in the monthly income threshold for PAYE exemption purposes. This, I believe, will inject additional cash into the hands of employed individuals, especially those in low-income brackets, monthly, cushioning the impact currently felt.

Protect SMEs and help them grow at all costs. According to the National Bureau of Statistics, SMEs contribute about 48% to Nigeria’s GDP, making them a critical driver of economic growth and development. The ILO further highlights their significance, indicating that SMEs account for 96% of businesses and a staggering 84% of all employment in the country! Fact: Nigeria grows when SMEs grow.

Despite their vital role, SMEs often face numerous challenges that hinder their growth. The regulatory environment is daunting, unfriendly and an impediment. Start by ensuring ease of doing business.

A friend of mine told me about how his wife, who runs a health food restaurant, has been inundated with regulatory inspections and monetary demands by NAFDAC, LIRS and LASAA. Haba! That’s choking! Regulatory bodies these days are perceived as evil. It’s time they transitioned from being perceived as obstacles to SMEs to being enhancers.

Mr President, Flexibility in enforcing regulations, particularly during this hard time is key. Also, consider implementing occasional tax breaks specifically targeted towards SMEs.

Following fuel subsidy removal and increased allocation to states, it begs the question; Why can’t all 36 states and FG increase monthly wages for federal and state workers? Come to think of it, what proactive measures are our state governors taking or are we just going to focus on the centre? Pardon the digression; Another topic for another day

Another immediate step would be lowering tariffs on essential imported items to further alleviate our burden. By reducing custom tariff percentage of imported goods, the burden on consumers can be lessened, particularly for items that are imported or are in short supply.

Mr Waziri Adio recently highlighted the importance of this measure and more in his column on Sunday, February 18th (I encourage you to look it up). His insights echo the sentiments of many who recognize the immediate need for action to address the current economic challenges

Though long term, ensuring the security of transportation routes that are paramount for the movement of food and essential goods is very important- mitigating disruptions in the food supply chain, thereby stabilizing prices.

Time is of the essence Mr President; The patience of the people seems to be running out.

Chiechefulam Ikebuiro

chiechefulamikebuiro@gmail.com