by Yecenu Sasetu
The Reality
The lives of Nigerians changed significantly on May 29, 2023, when President Bola Tinubu said the infamous words “subsidy, gone” while he was being sworn in as President of Nigeria. Before now, many governments had tried to remove fuel subsidies but were always met with protests from opposition parties, activists, and citizens.
This time, the policy declaration succeeded and took effect immediately as we began to see fuel queues and petrol went from N193 per litre to N617 per litre. This was significant because the cost of living rose by almost 300 percent instantly. A cab ride of N100 went to N300. A rise in transportation costs means a rise in food prices, building materials, healthcare, and even education. In a year and a half, inflation has gone up to over 30%. The price of petrol touches practically everything.
The World Bank states that over four million Nigerians were forced into poverty in 2023 and about seven million more will descend into poverty if nothing is done.
The current reality of Nigerian citizens is what has led to the #EndAusterity campaign by ActionAid Nigeria.
austerity
/ɔːˈstɛrɪti,ɒˈstɛrɪti/
noun
sternness or severity of manner or attitude.
difficult economic conditions created by government measures to reduce public expenditure.
The End Austerity Campaign is a collective movement driven by citizens, youth and women’s rights organizations, environmental groups, economic justice communities, trade unions, human rights defenders, activists, researchers, and humanitarian organizations. The campaign seeks to end austerity as a universal policy prescription across Africa, particularly in Nigeria.
According to ActionAid, the poverty rate in Nigeria has surged, with over 40% of the population living below the poverty line. This translates to over 133 million Nigerians living in multidimensional poverty.
“Before in our community, you will farm maize, farm groundnut, farm yam, nobody will touch it. But this year, I farmed maize but I did not carry anyone home because they stole everything in the farm.”, said Mariam from the Tunga Ashiri community.
Mariam was just one of the many who shared their experiences in the public discourse on ending poverty and inequality in Nigeria.
The event brought together Civil Society Organisations, Youth-led organizations, Governments, and Policymakers for engagement in ending poverty in Nigeria.
The Country Director of ActionAid, Andrew Mamedu said “The underlying cause of this poverty is rooted in the heavy burden of austerity measures, imposed as part of broader macroeconomic policies.”
Eze Onyekpere from the Centre for Social Justice also emphasized this: “Even if you look at previous budgets, the money for health and education is not increasing. There were condition precedents that should have been done before removing fuel subsidy and floating the Naira. It is not cast in stone that once subsidy is removed, there should be suffering.”
Well, the Minister of Budget and Economic Development, Atiku Bagudu, reminded everyone that the government has interventions in line with the Renewed Hope Agenda of the present administration. “Immediate interventions such as the distribution of fertilizer and grains to Nigerians has been initiated to ensure food security.”
Renewed Hope Reality?
At Shades of Us, we align with the call to end austerity. No Nigerian should live in poverty and experience hunger due to harsh economic policies by the government that is supposed to protect them. Every Nigerian deserves access to good health and well-being as well as quality education through decent work and economic growth.
ActionAid offers some recommendations:
Reform Economic Policies: Shift from austerity to a more progressive fiscal approach. Nigeria’s tax system must be reformed to ensure that the wealthiest individuals and corporations contribute their fair share. This could raise billions of dollars annually, much of which can be funneled into public services.
Increase Education and Healthcare Spending: The government must prioritize social investment, particularly in education and healthcare. At least 20% of the national budget should be allocated to education, as recommended by international benchmarks. There should also be a significant increase in health sector funding to rebuild Nigeria’s healthcare system and ensure universal access to quality care.
Empower Women Economically: Economic empowerment of women is not a luxury: it is a necessity. Policies must be designed to increase women’s access to credit, land, and employment. Furthermore, women’s voices must be at the forefront of decision-making processes, from the household to the highest levels of government.
Tackle Debt and Financial Imbalances: Address the root of the problem, in this case, Nigeria’s national debt. It is critical that Nigeria renegotiates its debt servicing terms and explores options for debt relief, freeing up resources for domestic investment.
Mamedu stated clearly that the “call to action extends beyond mere policy changes. We urge the government to prioritize public services and social welfare as an essential component of a just society.”
And we agree!
