Nigeria’s economy faces a triple threat: a devalued naira, rising inflation, and increasing interest rates. These challenges have discouraged businesses from reinvesting profits and even led some multinational corporations to exit the country.
While President Tinubu’s administration recognizes the need for long-term reforms, execution has been flawed. Attempting to address essential issues like subsidy removal and a unified exchange rate within a short timeframe has created immense pressure. Additionally, wasteful government spending, including unnecessary housing projects for executives and inflated salaries and bonuses for legislators, exacerbates the situation.
However, fixing decades-old problems in a single year is unrealistic. A balanced approach is necessary: tightening monetary policy while addressing fiscal gaps. Insecurity and corruption leak revenue from the economy. Illegal mining and oil theft persist, while farmers in the north struggle due to banditry, leading to food inflation.
To move forward, we must shift focus. Rather than debating the order of economic reforms, the government should prioritize fiscal accountability. Where does government revenue go? Why are security forces seemingly ineffective? Unchecked oil theft and banditry hinder farmers’ return to their lands.
Let’s move beyond distractions and tackle the real issues. There needs to be a comprehensive plan that addresses both monetary and fiscal shortcomings, alongside measures to curb corruption and improve security. Only then can Nigeria begin to climb out of the economic pit it currently finds itself in.
