Peju Kukoyi
President Bola Ahmed Tinubu has marked his first year in office. During this time, there have been significant economic reforms and attempts to address systemic issues, but challenges such as security, public discontent, and inflation continue to pose obstacles, with the removal of subsidies remaining the most drastic. Despite this, the government has been the largest beneficiary due to increased revenue. This policy move was closely followed by the floatation of the naira, resulting in a severe depreciation of the exchange rate. Additionally, FX scarcity in the official market and an increasing gap between rates in the official and parallel markets have been major concerns for manufacturers in the MSME space, who largely rely on foreign inputs.
Removal of fuel subsidy and its implications: The removal of the fuel subsidy, which was the first major policy announcement of Mr President, was necessary and overdue as it had placed Nigeria in a physically unmanageable situation. With a steady increase in the cost of living and livelihood, One year down, Nigerians are still yet to see the light at the end of the tunnel, and no hope of things returning to normal even with all the promises of transferring the subsidy funds to grow the economy.
Multiple Taxation: The issue of multiple taxation remains a challenge for many MSMEs in Nigeria. The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, has been having various consultative meetings and forums with various stakeholders and has promised an era of new tax reforms proposed by the federal government, which aim to exclude 95% of businesses and individuals operating in the informal sector from paying any tax. We await the final decisions and effective implementation of these policies as this will greatly alleviate the pressures faced by small business owners struggling to make ends meet.
The decline in consumer purchasing power: Over the past year, there’s been the worst decline in purchasing power, and things are not looking like they will get better soon because of the decline in the naira and food insecurity in the country. I will say that what we can look forward to in weeks and even months to come is an improvement in the situation. We can expect that food prices will come down and food availability will increase.
Consistent power supply: Even with the increase in electricity tariff, Nigerians are yet to enjoy the much-promised stable power supply. The Federal Government has indicated its plans with the Rural Electrification Agency (REA) to ensure access to affordable alternative sources of power for MSMEs across various markets and business places, thereby ensuring that these MSMEs have guaranteed 8-hour light. Thus, the government must urgently address the power supply issues in Nigeria, especially since the majority of MSMEs rely on power for their day-to-day activities.
Promoting Made in Nigeria Products: The government must focus on promoting Made in Nigeria products, either partially or wholly sourced, as this will boost the economy on all levels. There must be a collaborative effort by the federal, state, and local levels through formulating and implementing policies that prioritize local industries when bidding for government contracts, projects, and items to be used by government workers. The government must also ensure strict compliance with these policies. Additionally, imposing higher tariffs on imported products and tax breaks or incentives for manufacturers who use locally sourced materials in their production processes will encourage reliance on domestically produced items.
“As Nigeria navigates a complex socio-economic landscape, many citizens find themselves in a state of anticipation, hoping for substantial improvements in their daily lives. From rising inflation and unemployment to inadequate infrastructure and public services, the challenges are numerous, and the need for effective government intervention has never been more pressing.
Nigerians are not merely passive observers; they are actively engaged in discussions about governance and development. Social media platforms have become avenues for citizens to voice their concerns, share ideas, and demand accountability. The expectation is clear: the government must prioritize the welfare of its people and demonstrate a commitment to meaningful change.
As the government works to address these challenges, the eyes of the nation remain fixed on the horizon, hopeful for the improvements that have long been promised. The call for action is louder than ever, and it is a collective yearning for a better future—a Nigeria where every citizen can thrive and where the government’s efforts translate into real, positive change in their lives.”