This piece by the Nigerian Political Science Association (NPSA) is published in full to give readers the benefit of a complete text
Preamble
Nigeria is in the throes of a governance crisis that straddles the political and economic spheres. This crisis threatens the livelihoods of majority of the mass of its citizens and the stability of the nation. It appears to be at its worst point since its transition to democratic rule in 1999. Although the country has been able to conduct regular and periodic elections after turning away from decades of authoritarian military rule, democracy has not translated into inclusive growth because the security and welfare of citizens have been side-lined by successive elected governments. If anything, there has been a worsening of development outcomes as indicated by deepening multi-dimensional poverty.
Currently, we are witnesses to spontaneous public outcries and demonstrations in protest of rising cost of living as major government policies fuel inflation, while eroding the purchasing power of ordinary Nigerians. Surviving a bitterly fought General Elections in 2023 with ethno-regional divisive undertones, it is expected that the mantra of national unity and elite consensus on major policy issues would take the centre stage. But what the country has witnessed is a dramatic worsening of living conditions that generates apprehension in citizens regarding the prospect of national stability and the achievement of decent and dignified life. We are witnesses to the free fall of the country’s currency, leading to exponential increase in the costs of imported goods. Food prices have skyrocketed due partly to the increase in the pump prices of petrol. The steep decline in real wages and growing insecurity in cities and on the highways have created a sense of helplessness among Nigerians.
All these have plunged the middle class and the urban poor into conditions of a Hobbesian nightmare. The spiral of uncertainty, exacerbated by the complicit role of the legislature at both national and sub-national levels in its failure to reign in the executive branch, all point to a looming severe legitimacy crisis capable of derailing our struggling democracy or bring it to immense grief.
The Nigerian Political Science Association, NPSA, having reflected on the chains of events that have unfolded in the past few months, and in keeping with her mandate to continually audit the performance of the Nigerian State in fulfillment of its obligations to Nigerian citizens, and in furtherance of the imperatives of public accountability, consistent with the expectations of a democracy, issues this statement on ‘The Unbearable Cost of Living in Nigeria.’
High Cost of Living in Nigeria
The nation is experiencing a rapid escalation in the cost of living, which is unparalleled and concerning. This rise is attributed to various issues, such as the significant decline in the real sectors of the economy, the sharp increase in food prices due to the elimination of fuel subsidies, and the escalation in the operations of non-state armed groups, each with distinct regional characteristics. The situation at hand is both fascinating and disquieting. The nation is currently utilizing more funds than its entire revenue to manage its public debts, resorting to borrowing from both domestic and foreign sources to finance its national budgets. In addition, the country is struggling to fulfill its OPEC quota of 1.8 million barrels of crude oil daily, with nearly 700,000 barrels being lost daily to oil theft. Although these challenges may seem predominantly economic in nature, addressing them effectively demands a combination of political determination and carefully crafted public policies.
The challenging circumstances faced by the populace are exacerbated by the violent actions of ISWAP-Boko Haram militants, leading to the displacement of numerous individuals from their communities in northern Nigeria. Simultaneously, kidnapping and various criminal activities are on the rise in the southern states of Nigeria. Furthermore, widespread flooding has uprooted millions of individuals and farming communities nationwide, diminishing agricultural output, fostering widespread poverty, and precipitating a humanitarian emergency.
Within Nigeria’s estimated population of 200 million individuals, there are approximately 20 million children who are not enrolled in school. This situation is exacerbated by a frail social protection system, signaling a grim future for these children. This circumstance poses a significant concern, as these children could potentially become a ticking time bomb that poses a threat to the entire society.
What needs to be done?
These are the most tempestuous times for the global capitalist economy, grossly weakened by the rising tide of recession that has hit the most ebullient capitalist economies, including the United States, Britain and Japan. These countries are already paying a high price for doctrinaire free market even with their room to manoeuvre considering the levels of development of productive forces, and the flexibility provided by their advanced technology, including the role of Artificial Intelligence. Countries like Nigeria, perched on the edge of global marginality, dependent on export of crude petroleum which production is shrouded in lack of public accountability, does not stand a chance of allowing its local currency to flow freely against the major currencies of the world.
It is against this backdrop that the NPSA puts forward the following suggestions:
(1) We note that the prevailing issue of high living costs is a global concern, but in Nigeria, it is exacerbated by the prevailing attitude of public officials who frequently view citizens as adversaries across all government tiers. This longstanding negative perception has significantly strained the relationship between the government and citizens, leading to a lack of receptiveness to governmental appeals for understanding. It is imperative for administrations to tackle these trust deficiencies by enhancing the accountability and responsiveness of public officials. Transforming the current atmosphere of elitist politics in the nation can be achieved when citizens have confidence in the genuine motives of governments.
(2) In the face of globalization and the influence of neo-liberal economic strategies, such as privatization, free exchange rate systems, and the elimination of subsidies on essential items like petroleum products and key agricultural inputs, it is vital to approach these policies with caution, taking into account contextual factors. The fundamental principles of national survival and the protection of local mechanisms of economic growth should serve as the foundation for macroeconomic policy adjustments.
(3) In retrospect, President Ahmed Bola Tinubu should promote a public discourse concerning the kind of capitalist economic model that aligns with the aspirations of Nigerians and is suited to the prevailing societal conditions. Nigeria could draw inspiration from the ongoing dialogue on social capitalism, which upholds the principles of freedom, equality, and social justice. It is recommended that the president and state governors broaden the policy formulation process by involving technocrats from diverse ideological backgrounds to collaboratively deliberate and devise mutually agreeable economic and social strategies. This inclusive approach contrasts with the existing practice of confining policy formulation to proponents of market-oriented ideologies, thereby neglecting the national interest.
(4) The removal of fuel subsidy should not have occurred without a consensus that addresses the critical aspects such as domestic petroleum product refining and associated concerns. Given the strategic importance of the oil sector to Nigeria’s survival, the approach taken to address this matter should have been more deliberative and inclusive. We feel that something can still be done in opening up the sector for more participation of Nigerians in real sense.
(5) Despite President Bola Ahmed Tinubu’s promise to recommence domestic petroleum product refining by December 2023, Nigeria stands out as the sole OPEC nation that exports crude oil yet relies on imports for refined products from various origins. Additionally, the Federal Government’s delay in addressing the matter of modular refineries, despite their potential as viable short-term solutions, is a point of concern that needs urgent attention.
(6) The Federal Government of Nigeria has been perceived as non-committal in its efforts to combat corruption. It needs to demonstrate a clear political resolve to tackle this issue. It is imperative for the government to show the Nigerian populace that it is serious about combating corruption by initiating legal proceedings against Ministers and other high-ranking officials implicated in public financial improprieties. Particularly concerning is the reported misappropriation of funds allocated for humanitarian purposes and the support of vulnerable segments of society by government officials.
(7) It is crucial for the Federal Government to exhibit the necessary determination to delve into the underlying causes that have transformed oil subsidies into fraudulent practices. Even if there are no intentions of reversing the policy, it remains essential to re-examine the issue to comprehend why oil subsidy has become a burden on the national economy, impacting all citizens. This raises the question of why other nations are still able to sustain subsidies, while Nigeria struggles in this regard. It is advisable for the Federal Government to pursue this line of inquiry to gain more insight into the matter.
(8) One other direction government at all levels can look at is the high cost of contracts and supplies in Nigeria. Under President Goodluck Jonathan, it was said to be above global average by 30%. It must be higher by now. If sanity can be brought to that sub-sector, more money will come into the kitty of governments with which to implement their programmes without further squeezing the poor.
(9) FGN is called upon to take immediate and urgent steps to combat the present double-digit inflation and crash the prices of food items and such commodities like cement vital for the manufacturing and construction industry through a more diversified supply chain. It also needs to watch its inclination to tax anything taxable. While it is good to soar up the revenue base of the Federal Government, the effect of indiscriminate tax regime is partly responsible for the current hardships in the land.
(10) We are aware of the level of resistance to the idea of food importation. The NPSA also shares the same sentiments in the long run. However, a man needs to live well today before he can hope for a better tomorrow. It is our position that the government can resort to it, bearing in mind the need not to make it another gravy train of corruption to arrest the current emergencies in the short run.
(11) We draw attention of governments to the general depression of public sector wages that has eroded the morale of public servants and plunge them into poverty. These have been grave consequences for performance of the public service and occurrence of petty corruption within it. We note with concern that this regime of depressed wages has occurred in the midst of humongous and unjustifiable remuneration and allowances being paid to political office holders. The NPSA therefore calls for a drastic reduction in the pay of political office holders to show solidarity with the masses of Nigerians who are multi-dimensionally poor, being worst hit by the soaring cost of living in the country.
(12) We call on the Federal Government to urgently review its present approach of routing palliatives to citizens through state governors. Such a route has not been effective because local dynamics are frustrating the good intentions of the Federal Government. The Federal Government should therefore attach accountability mechanisms to the distribution process to ensure that the palliatives get to the targeted population.
(13) It is imperative for the government to engage in public debate and deliberations regarding the proposal to institute state police. The aim is to facilitate extensive involvement of civil society as a crucial component of addressing the prevalent insecurity challenges. While acknowledging that this policy aligns with federal principles, the unique circumstances within Nigeria, where sub-national entities have not consistently demonstrated the required prudence in managing public affairs, must be taken into account. Furthermore, the discourse should prioritize safety mechanisms to prevent potential misuse or exploitation of state police resources. Safety mechanism against abuse is a significant aspect of the conversation on state police.
(14) The current execution of the Orosanye report warrants careful consideration. Given that the report was submitted twelve years ago, it may not reckon with recent developments. It is our opinion that the wholesale implementation of the report could potentially lead to job losses. Therefore, we advocate for a cautious approach to prevent the introduction of further challenges that could exacerbate the existing stress levels within the nation.
(15) We endorse the current initiative to amend the 1999 constitution, emphasizing the importance of inclusive participation from all segments of society. As articulated in a previous press statement, we stress the necessity of establishing reliable platforms for citizens to express their opinions on the desired amendments to the constitution. Without such inclusive engagement, the allocation of public resources to this endeavor would be futile. It is crucial to refrain from the traditional approach of hastening through the process with input primarily from a select group of privileged individuals.
(16) Regarding the ongoing discourse surrounding constituency projects, we acknowledge the underlying principle as legitimate but strongly condemn the scandalous execution of such projects in Nigeria, which lacks comparison in modern times. The lack of equitable distribution of funds for these projects further fuels the controversy surrounding them. To address these concerns, we propose that constituency projects should be implemented without any direct role from legislators, as is the practice in more effective democracies. Additionally, we advocate for transparent dialogues between the president and the National Assembly leadership regarding constituency projects to ensure that best practices govern their execution.
Conclusion
The NPSA expresses its concern that the current administration is grappling with a legitimacy crisis due to the worsening social conditions experienced by both the middle class and the underprivileged segments of society. Urgent action is imperative to tackle issues of insecurity, escalating food prices amid widespread poverty, and the collapse of public sector salaries. It is crucial to implement nationalistic policies promptly to prevent a potential descent into chaos that could jeopardize Nigeria’s democratic system. The nation’s future hinges on the ability of its leaders to formulate a “development bargain” that will stabilize the political landscape and foster inclusive economic advancement.
The NSPA urges the Nigerian populace, despite the challenging circumstances they are currently enduring, to refrain from actions that could bolster anti-democratic elements seeking to erode the country’s democratic principles. Despite its significant limitations in terms of overall performance, democracy in Nigeria still offers a more hopeful prospect for comprehensive growth and development than any conceivable alternative.