In a live broadcast that captured the nation’s attention, President Bola Tinubu laid out a series of initiatives aimed at steering Nigeria through its current economic challenges. The President’s speech, which marked by a tone of empathy and determination, began with consoling the families of those affected by recent violent protests and addressing the protesters’ desires for a better Nigeria. He expressed his sorrow over the loss of lives and destruction of properties, emphasising the need for peaceful resolutions and unity.
Nigerians are a sensitive people and this gesture of President Bola Tinubu is a reflection of his compassionate side. I have no doubt this laudable preamble to the President’s speech will be more exhaustively discussed in other fora because this is what leadership is all about, connecting with the people.
Transitioning from this somber reflection, President Tinubu presented series of proactive measures aimed at alleviating the economic burdens faced by many Nigerians. President Tinubu acknowledged the economic hardships resulting from necessary reforms, such as the removal of fuel subsidies and the unification of exchange rates. He emphasized the administration’s focus on rebuilding the economy, highlighting that government revenues have more than doubled and productivity is increasing in the non-oil sector. It is important to discuss these issues dispassionately.
Palliatives like direct cash transfers, food assistance, or housing subsidies help people afford essentials when jobs are scarce. This needs no overstating. Palliatives alleviate immediate hardship, particularly for vulnerable populations. By offering palliatives to vulnerable families, the Tinubu administration is getting it right on two fronts. While reliving the most hard-pressed families of hardship, the process invests hope in the future. Hardships come and go but how you treat people in their hour of dire needs reflects how you value them. By investing in the well-being of Nigerian families and identifying with them when they are undergoing hardship, President Tinubu is cementing his legacy and history will remember him kindly.
The benefits of palliatives are often underappreciated by those unfamiliar with economic policy. It keeps families firmly embedded in the economic loop through consumption. When people have some safety net, they’re less likely to drastically cut all spending during hard times. This prevents a deeper economic spiral, as demand remains somewhat stable. Economics will confirm that when people have money to spend on basic needs, it has a multiplier effect in the economy. Money spent by those receiving aid goes back into the economy, like buying food, paying rent, and buying basic needs This can have a ripple effect, supporting businesses and potentially even creating jobs. More jobs will benefit more people and reduce the national poverty index.
Palliatives carry both social and political advantages. Providing financial support to families during national economic downturns is considered a global best practice. The way President Joe Biden’s administration utilized palliatives to restore the U.S. economy following the Covid-19 devastation serves as a testament to the effectiveness of palliatives as a tool for economic recovery. Upon taking office in 2020, amidst the challenges of extensive queues at food banks, widespread small business closures, and the layoff of millions of workers, the administration implemented an emergency legislative package designed to fund vaccinations, offer immediate and direct relief to families most affected by the COVID-19 crisis, and aid communities in distress.
The Biden Administration correctly identified palliatives as the initial phase of a bold, two-pronged strategy for rescue from this crisis and recovery through investment in America, creating millions of well-paying jobs, addressing the climate crisis, promoting racial equity, and rebuilding better than before. This approach has been effective. The U.S. economy has experienced one of its longest periods of consistent growth during the Biden Administration, generating more jobs and supporting millions of families. This strategy could be successful in Nigeria as well. Just as Americans trusted Joe Biden’s policies to overcome economic challenges, Nigerians should take inspiration and unite behind President Bola Ahmed Tinubu as he strives to restore Nigeria’s economy. Difficult times are temporary, and the President’s recent address has raised hopes that Nigeria is on the correct path with robust economic policies prioritizing the welfare of its citizens. Similarly, the palliatives
introduced by President Tinubu’s Administration are expected to alleviate the economic difficulties faced by numerous Nigerian families. These measures will also enhance public trust by showing the Administration’s dedication to fostering a robust economy and aiding the average citizen.
The President prior to the broadcast, had already set in motion plans to address these challenges. Specifically, the administration requested the National Assembly to amend the 2022 supplementary appropriation act to source 500 billion naira (approximately $650 million) for palliatives. This ambitious plan, aimed at cushioning the impact of the fuel subsidy removal, was approved. The funds are set to provide direct cash transfers to 12 million vulnerable families over six months.
To boost food production and reduce prices, President Tinubu directed the removal of tariffs and other import duties on essential grains like rice, wheat, maize, and sorghum, as well as drugs and other pharmaceutical supplies, for the next six months. The government aims to cultivate more than 10 million hectares of land with the help of mechanized farming equipment purchased from the United States, Belarus, and Brazil.
This initiative is more than a financial gesture but a lifeline to millions grappling with economic hardships. By targeting the most vulnerable, President Tinubu’s administration demonstrates a profound commitment to social equity and support.
Understanding the critical role of affordable transportation, President Tinubu announced plans to invest in public transport systems. The Compressed Natural Gas (CNG) initiative aims to power the transportation economy, reducing transportation costs by approximately 60%. This initiative will save over two trillion Naira a month, previously used to import petrol and diesel. The purchase of these gas-powered buses is set to reduce transportation costs, directly benefiting ordinary Nigerians and indirectly easing the cost of food and other essentials.
Improving public transportation is a strategic initiative with extensive benefits. It reduces the cost of daily travel and improves access to education, healthcare, and job opportunities, thus aiding in economic development. Furthermore, by encouraging alternatives to reliance on private vehicles, urban areas in Nigeria can progress towards more sustainable and robust transport networks.
There are additional associated impacts. Regions with good transit access often experience increased property values and business investments, revitalizing urban centers. Investment in mass transit can promote denser, more walkable cities, mitigating the adverse effects of urban sprawl. Incentives can drive private sector participation and innovation in the development of new transit technologies and services. Transportation costs will significantly decrease. Currently, millions of Nigerians allocate a large portion of their income to transportation. Constructing
and maintaining transit systems directly creates jobs. Moreover, enhanced accessibility can lure businesses and further boost economic growth. Efficient mass transit can reduce traffic congestion, which incurs substantial economic costs due to lost productivity and fuel wastage. Dependable transit enables easier access to jobs and education. This expands the employment pool and will boost overall national economic output.
President Bola Tinubu’s public transportation initiative is expected to lower transportation costs in urban and semi-urban areas, which could lead to reduced inflation and improved living standards. Consequently, the President’s plan is anticipated to be advantageous over time.
One positive aspect of President Bola Tinubu’s address to Nigerians on Sunday is the portrayal of his government as attentive and empathetic. He is attentive to the voices of the people and empathetic with the right measures to ease their pains. The speech was more than mere words; it was a vivid display of his administration’s commitment to enacting significant and positive changes in Nigeria. President Tinubu’s policies, ranging from tax reforms and a unified exchange rate to student loans and economic relief measures, represent a holistic approach designed to promote economic growth, stability, and social equity.
The relief measures introduced are set to ease the difficulties faced by Nigerian families, although they will take time to implement fully. Investments and incentives in mass transportation are paving the way for cities that are economically dynamic, socially just, and environmentally friendly. With these reforms taking effect, the nation observes with guarded hope. The journey towards transformation is challenging, yet with resolute leadership and a definitive vision, Nigeria is poised at the threshold of a new era—an era that heralds prosperity, stability, and an enhanced future for all our citizens.
Mohammed Kabir Kazaure, a retired Director from the Federal Civil Service, resides in Kano.
