Comrade Joe Ajaero, the National President of the National Labour Congress (NLC), has issued a scathing critique of the current administration’s economic policies, decrying the impact of recent reforms on the average Nigerian citizen.
Speaking at the 21st Edition of the Daily Trust Dialogue organized by Media Trust Limited in Abuja on Thursday, Ajaero highlighted the hardships faced by the populace, notably pointing to challenges arising from the removal of fuel subsidies, privatization failings, and rampant inflation.
Other speakers at the event included the Minister of Information and National Orientation, Mohammed Idris Malagi; former Minister of Finance and National Planning, Shamsudeen Usman; the immediate past Director General of the Abuja Chamber of Commerce and Industry (ACCI), Victoria Akai; former Chairman of Nigeria’s Independent National Electoral Commission (INEC), Prof. Attahiru Jega, among others.
The 21st Edition of the Daily Trust Dialogue provided a platform for diverse perspectives on President Bola Ahmed Tinubu’s economic reforms. While some speakers expressed concerns about the impact on the common people, others presented a more optimistic view of economic projections.
However, the call for accountability, responsible reporting, and continuous constructive engagement emerged as common threads in the discussions.
Ajaero started his address by expressing discontent with the influence of international bodies on local economic decisions, citing the NLC’s recent confrontations with the World Bank.
“The directives to further increase prices of petroleum products originated from the World Bank and IMF. Two months ago, we had a tough time engaging with the World Bank, which was urging an increase in petroleum product prices,” he said.
Reflecting on the government’s attempts at privatization, Ajaero criticized the evident failure of such strategies, highlighting the sale of assets worth over $5 billion for only $1 billion.
He used the power sector as a key example of this failure, noting the high cost of privatization followed by an alarming N1.8 trillion annual subsidy.
“If you read yesterday’s newspapers, you would have seen that five power companies, previously valued at over $5 billion, are now set to be sold for just $1 billion. Despite past projections of a N1.8 trillion naira annual subsidy, these policies have not succeeded,” Ajaero added.
He drew an analogy, stating, “It’s like selling your house for N2 million and then giving the new owner N10 million for repairs. Such a political economy is unheard of elsewhere.”
Addressing an audience of key policymakers and stakeholders, Ajaero outlined the broader economic effects, such as the severe devaluation of the naira and the subsequent rise in the cost of imported goods.
He vividly described the impact of subsidy removal, with fuel prices soaring from N187 to around N700—a burden disproportionately shouldered by ordinary citizens.
The NLC President emphasized the predicament of everyday Nigerians, whose wages have languished behind the escalating costs.
“We are witnessing public disasters that yield private gains: a few individuals profit while the public suffers. The real losers are those who have seen the price of imported goods jump from N200 to N700. They are the ones whose transportation costs have quadrupled without any corresponding increase in their wages. They suffer from unimplemented wage increases. Ultimately, the common people are the losers, and economic policies have done little to alleviate their distress,” he explained.
In his impassioned speech, Ajaero also questioned the rationale behind non-justiciable policies that fail to serve the public good, as advocated by Chapter Two of the 1999 Constitution.
He argued that such policies only deepen the national debt, burdening future generations.
The NLC President criticized the government’s approach to economic growth, questioning the effectiveness of subsidies and palliatives and pointing out the adverse effects of poor policies on the populace.
“Negative publicity is not the real issue; the negative impact of poor policies is. As a professional with a media background, I can confirm that we report what we see. The harsh reality is that many Nigerians live on less than one dollar per day, and the situation has worsened after the subsidy removal. Locally produced goods have become exorbitantly expensive,” he clarified.
Ajaero pointed to the power sector as a stark example of a failed privatization effort and the inability of the private sector to effectively manage the power supply, leading to a ‘comatose state’ of the sector.
He urged the government to adopt a conscious master plan that benefits all Nigerians, rather than a select few.
Drawing attention to the recent decision by the central bank to charge a fee for cash withdrawals, Ajaero predicted that such policies would only worsen the economic crunch faced by Nigerians.
He called for a policy reversal, emphasizing the need for the government to reassess its strategies and consider the wider socio-economic implications of such measures on the populace.
Make public your KPIs for cabinet Minister’s – Shamsudeen Usman urges Tinubu
Transitioning to another perspective, former Minister of Finance and National Planning, Shamsudeen Usman, stressed the importance of a systematic approach to evaluating winners and losers in economic actions.
He acknowledged the impact of recent economic decisions on the average Nigerian but suggested that the long-term effects depend on factors like palliatives, implementation, and the use of additional revenues.
Usman lauded the establishment of the central delivery unit and key performance indicators (KPIs) for ministers, emphasizing the need for accountability. He urged the public release of KPIs and clear consequences for failure.
He said, “Commendably, the president’s establishment of the central delivery unit and setting key performance indicators (KPIs) for ministers is a step in the right direction. Making these KPIs public and defining consequences for failure is crucial for accountability.
“Drawing from my experience, specifying targets with measurable outcomes, such as reducing system breakdowns in the power sector, can drive performance. Consequences for failure, like resignations, must be clearly defined. This approach ensures that failure is not just a statement but comes with tangible repercussions.
“Ultimately, quantifying gains and losses through a systematic evaluation of policies allows us to identify the true winners and losers among Nigerians.”
FG must engage, listen to citizens’ perspectives – Jega
Prof. Attahiru Jega, former Chairman of Nigeria’s Independent National Electoral Commission (INEC), stressed the importance of evaluating policies’ impact on citizens and engaging government officials for a better understanding
He highlighted the adverse effects of executed policies like subsidy withdrawals on ordinary citizens.
Jega stressed the importance of constructive engagement to influence government perceptions and improve policies for the citizens’ well-being.
He said, “Addressing policy matters and contributing to democratic governance in our country is crucial
We’ve observed that executed policies, like subsidy withdrawals, have adversely affected ordinary citizens.
“Engaging government officials is vital to understanding the rationale behind these decisions and uncovering their negative effects.
Unfortunately, in our country, many policy makers tend to stay aloof from these opportunities.
“Staying away doesn’t contribute positively to governance. As a nation, we aspire to achieve good governance, reflecting on our past experiences and the desire for improvement. If policymakers refrain from engaging in these constructive dialogues, we still have a long way to go in terms of progress and development.”
Ex-ACCI boss hails Tinubu’s policies, efficient decision-making
Meanwhile, Victoria Akai, immediate past Director General of the Abuja Chamber of Commerce and Industry (ACCI), took a different stance, commending the government’s active policies and efficiency in decision-making.
She presented an optimistic view of economic projections, citing GDP growth, increased total factor productivity, and progress in reducing Nigeria’s debt burden.
Akai acknowledged challenges such as inflation and advocated for specific short-term, medium-term, and long-term policies.
However, she highlighted tax reforms, diversification of the economy, and emphasis on human capital development as crucial components for sustained positive developments.
According to her, “Presidential reforms have yielded gains, with the Nigerian economy growing at a faster pace of 3.3% compared to population growth.
“Opportunities for growth in Nigeria’s potential have been harnessed through strategic initiatives, such as leveraging preferential trade agreements like the African Continental Free Trade Agreement. Sectors ripe for exploration include mining, agriculture, and the creative economy.”
Despite challenges, Nigeria’s economic situation not entirely bleak – FG
In response to the critiques, Minister of Information and National Orientation, Mohammed Idris Malagi, addressed various issues, including the government’s stance on international matters, wage increases, and ongoing efforts to address compensation issues.
The Minister said, “Our agreement (with organized labour) stipulates a six-month wage award, after which the federal government will collaborate with Labour to establish a new federal minimum wage.
“Despite challenges, it’s not entirely bleak; the government is assembling a committee, involving various levels, to address compensation issues.
“It’s crucial to understand that this collaborative effort extends beyond the federal government. Every state governor is actively involved, ensuring inclusivity in decision-making.
“Funds allocated to states are to be monitored, highlighting the responsibility of governors to transparently manage these resources.
“President Bola Ahmed Tinubu’s vision aims to support Nigerians, rejuvenate the economy, and restore prosperity, acknowledging that transformation takes time.”
On the issue of press freedom, Minister of Information and National Orientation, Mohammed Idris Malagi, underscored the importance of transparent communication.
He affirmed the government’s commitment to a free press and urged responsible reporting.
In his address, the Chairman of Media Trust Group, Kabiru Yusuf, expressed skepticism about the promises made by politicians, questioning the government’s desire and discipline to deliver on economic reforms.
He initiated the dialogue on assessing gainers and losers in the current economic reforms, urging a thorough scrutiny of the government’s competency.
“Some may argue that the President has the potential for success in office, suggesting it might be premature to judge. However, I believe now is the time to scrutinize and shape what lies ahead,” he said.