Following the fall in the price of crude oil in the international market, the ripple effect back home is the further tightening of the purse, especially as Nigeria relies solely on oil for its foreign exchange earnings.
As a result of the financial crisis, the federal government had announced the move to introduce austerity measures.
Analysts had immediately predicted that the measures will see Nigerians pay heavy tax on luxury goods, prices of basic goods and services are also expected to go up, while government has already commenced the reduction in public expenditures and international travels by public servan
However, many have argued that the austerity measures proposed by the government would further enrich the affluent and plunge average Nigerians into more hardship and economic depression.
National leader of the All Progressives Congress, Asiwaju Bola Tinubu, was one of those who championed this point of view, stating that “the austerity measures embarked by some countries in the Euro zone had not solved their economic problems in the past five years since the global financial crises.”
Back then, he had said: “All that austerity has done is to tighten the grip of the wealthy on the economy, while weakening the position of the middle class and the poor.”
Now, we are almost two months into the year and the Bizwatch team decided to investigate the effect of the austerity measures thus far;