The Coalition of Northern Groups (CNG) has warned President Bola Ahmed Tinubu, to take proactive measures to address the economic doldrums and current harsh economic realities confronting Nigerians, noting that revolution looms in Nigeria. Comrade Jamilu Aliyu Charanchi, National Coordinator of CNG, who gave the warning at a media briefing on Friday, said “symptoms of revolt loom large in the horizon.”....KINDLY READ THE FULL STORY HERE▶
Charanchi said today that life has become highly unbearable for the overwhelming majority of citizens, adding that “The suffering of Nigerians is palpable across every stratum.
“The CNG holds the present and previous governments responsible for creating this dire situation for Nigerians.”
“The current situation, Mr. President, the CNG feels duty bound to draw your esteemed attention to the alarming danger in the immediate horizon, as evidenced by dark clouds of imminent massive revolt of citizens against the government.
“Mr. president, cosmetic measures are usually not sufficient to contain the raging anger of the people, particularly when they are inundated by economic hardships, massive hunger and rampant poverty, while the political class and their cohorts live a life of scandalous opulence and open ostentations.”
The Coalition of Nothern Groups said that Tinubu’s Economic Team is the worst since the inception of Nigeria’s civil rule in 1999.
Charanchi said the economic team of President Tinubu lacks coordination, focus, foresight, and a clear understanding of the workings of the Nigerian economy.
“The anti-people policies of the government only enabled the few elite to primitively acquire wealth, while the vast majority of citizens continue to languish in deep poverty.”
He lamented that in responding to the current hardship facing Nigerians, Tinubu-led government “appears to be adopting a trial-and-error approach to the economy, resulting in further deterioration and further exposing people to avoidable hardship.”
According to Charanchi,”The CNG has critically reviewed the current situation in Nigeria and strongly cautions against the looming precipitous collapse of the nation.
“We are deeply concerned about the general economic atmosphere, which portends imminent danger. It is, therefore, imperative to address the escalating hardship that has permeated every segment of Nigerian society.
“Current economic indices and data from the Nigeria Bureau of Statistics (NBS) paint an ugly picture of our reality, as it confirms that 133 million Nigerians are already living in multidimensional poverty, while 20 million people, mostly young within the bracket of productive age, are either completely unemployed or underemployed.
“People are increasingly losing hope about the government’s economic policies and institutions of governance. This poses a great danger to our dear country.
“The CNG has observed that inflation has created horrible and traumatic economic consequences.
“It has led to huge losses on investments, disruption of business activities, an increase in poverty, and unemployment.
“This is in addition to the social consequences created by insecurity, such as displacement of communities, loss of lives and properties, and psychological trauma.
“It is no longer news that pervasive hardship across the country has eroded trust in the present government, and it’s exponentially threatening national unity, peace, and security.
“It is also worrisome that Nigeria’s overall inflation has risen to 34.19% from 22.41%, a steep 52.6% increase, while food inflation has surged from 24.82% to 40.66%, a 64% increase within a year—the highest recorded in decades.
“Disturbingly, despite no increase recorded in electricity generation or renewal of transmission equipment, the electricity tariff has skyrocketed by an average of ₦71.59 to ₦225 which signifies a substantial rise of over 200%, in the electricity course for band A with no corresponding increase in power supply and distribution.
“In the past six months, we have already experienced multiple national power grid collapses, including the most recent one which occurred on Saturday, July 6, 2024. This is detrimental to our development and industrialization drive.
“In the same vein, the ill-conceived floating of the naira has led to its depreciation from ₦463 to a dollar to ₦1,573, a stunning 240% drop.
“This has caused a sharp decline in the Purchasing Managers’ Index (PMI) from 53.2 points to 52.1 points, indicating an unhealthy trend in the private sector.
“Empirical data from NBS and others reveals that over the past year, key economic indices have worsened with no definitive and evidence-based solutions in sight.
“In this dire situation, instead of providing relief, the Monetary Policy Committee (MPC) announced an increase in interest rates, which will further devastate the economy and diminish the prospects for job creation.
“The outcome of the MPC economic policies is a clear manifestation that President Tinubu’s economic team is the worst since Nigeria’s return to civil rule in 1999.
“To compound the situation, the government has increased the interest rate from 18.5% to around 30%, a 62% rise.
“The experts warned that, increase in interest rate at the moment will stagnate the economy and lead to job losses.
“The CNG shares stakeholders’ concerns that higher interest rates will not only reduce investments and economic growth but also aggravate the daunting challenges, inundating the business environment, leading to factory closures, job losses, and reduced economic activities.
“The Manufacturers Association of Nigeria (MAN) reports that, within two months, over 16 multinational corporations relocated from Nigeria to neighbouring countries, over 300 local manufacturing companies were closed, and over 380,000 jobs were lost, sending Nigerians back to labour market to search for non-existing employment opportunities.”
The CNG, therefore, called on Tinubu to reassess his economic advisers/tax regime committees whose misguided counsel has led to policies prioritising personal interests over national well-being, entrenching poverty, unemployment, inequality and insecurity.
“These advisers have demonstrated a lack of understanding of our economic realities, perpetuating harmful policies that are disastrous for the country, and squandering the president’s political capital.
“We urge President Tinubu to purge these advisers from his administration, as their incompetence is strangulating the nation’s economy.
“Additionally, the removal of fuel subsidies has led to a shocking 195% increase in petrol prices, from ₦238 to ₦701 per litre, crippling the mobility of people and goods across the country.
“Despite Nigeria increasing its crude oil production from 1.18 mbpd to 1.28 mbpd and receiving favourable oil prices of $82.57 per barrel above the earlier $76.97, this increase in revenue has, sadly, not benefited the common man nor translated into any benefit for the nation,” CNG said.
On the issue of minimum wage, Charanchi argued that increasing minimum wage amid rising inflation, devaluation of the naira and pervasive economic crises will never solve the problem of Nigerian workers.
“While we appreciate the Federal Government’s intention to pay a decent living wage to Nigerian workers, we are skeptical over the Federal Government’s plan to further increase the fuel price in order to fund the new national minimum wage.
“Hike in fuel prices, will not only over burden the Nigerian workers but it will also economically pauperize Nigerians.
“Such a move is cruel and unjustified at the moment when majority of Nigerians could not afford a decent meal a day.
“We reject this plan and urge the government to explore humane and innovative alternatives such as reducing wasteful expenditure and high cost of governance, tackling corruption, and increasing taxes on luxury goods to fund the minimum wage.
“Any wage increase that hikes fuel price is self-defeating.”
Charanchi, further urged Tinubu to summon the needed political will and courage to urgently address the root cause of these problems, such as rising fuel pump price, hike in electricity tariff, escalating cost of food items, depreciating value of the Naira and high cost of governance.
“These problems predated your government but the policies your government adopted since coming to power have combined to compound these problems, especially the imposition of high taxation on both citizens and businesses.
“In addition to the award of inessential contracts at indefensible amount which are injurious to the nation’s economy.
“Regrettably, most of these contracts are to be financed by borrowed money from foreign sources,” the CNG said.