The pan-Nigerian social welfare group, Afenifere, has called on the Federal Government to reassess its economic policies, highlighting severe inflation and escalating poverty as critical issues affecting the populace.
In a statement signed by Afenifere’s Publicity Secretary, Prince Justice Faloye, the group warned that if the current economic strategies persist during the first year of President Bola Tinubu’s administration, the nation will continue to face economic instability, further impoverishing its citizens in the coming years.
Afenifere urged the administration to listen to the needs of the masses and take steps to alleviate their hardships, noting that the economy has experienced significant turbulence in Tinubu’s first year in office.
The group criticized the government’s reliance on flawed economic theories, such as subsidy removals and tax increases, which they argue have led to skyrocketing costs and galloping inflation. Afenifere also pointed out the adverse effects of high interest rates and the recent devaluation of the naira, emphasizing that these policies have crowded out the productive sectors of the economy from accessing necessary loans.
“Subsidy removals and tax hikes that withdraw money from the economy do not stimulate growth. Instead, they contract the economy, leading to business closures and increased costs of fuel and electricity,” Afenifere stated. “The government’s reliance on one-sided monetary policy has seen interest rates rise significantly, with the Monetary Policy Rate currently at 26.25% from 18.5% a year earlier, and the Cash Reserve Ratio at 45% from 32.5%.”
The group also referenced President Tinubu’s announcement of the petrol subsidy removal on May 29, 2023, and the Central Bank of Nigeria’s unification of the forex exchange market on June 14, 2023, which caused a sharp depreciation of the naira.
Afenifere stressed that these policies are ineffective in controlling inflation because the funds withheld from the private sector through restrictive measures are being funneled into government spending, which is then reintroduced into the market, exacerbating the problem.
The group concluded by urging the government to adopt more balanced and productive economic policies to ensure sustainable growth and alleviate the suffering of Nigerian citizens.
