THE productive forces of any political system determine to a larger extent the prosperity or otherwise of the nation. Often times, myopic economic planners, who have little knowledge about the importance of marginal revenue often increase the burdens of labour, reduce purchasing power in order to increase production. However, at the end of the day, goods and services thus produced are left to rot when the capacity to purchase is highly reduced. At that period, the strength of labour to perform at optimal level is reduced, and agitations often become a daily occurrence that hampers the smooth running of the political system.
That scenario is the current economic situation with Nigeria.
THE removal of the subsidy, a government policy determined before 2023, did not come with attendant policy orientation that would seek to address the various economic issues that may arise from the removal. The Nigeria government, irrespective of the political party and or personalities in power had been reactionary rather than been proactive. History has shown that they always put the cart before the horse, thereby unleashing avoidable and harsh economic pains on the citizens. We observe that right now, in all geopolitical zones, Nigerians are on the edge by the current economic situation in the country, which range from increase in prices of goods and services occasioned by fuel subsidy removal; food insecurity and lack of access to basic human amenities that can sustain life. Even fuel dispensing stations which ought to smile to the bank over the increases in fuel pump price are groaning under low patronage and loss of marginal revenue. Unfortunately, this and climate change have adversely affected the food industries and procured hunger on the political system.
TO arrest this ugly economic downturn, THE HOPE insists that the Federal Government should immediately sell off some of the dormant refineries, and use the proceeds to upgrade others, thereby ensuring that more than one would be restored to full production capacity on or before December. This is because any move to mitigate the effects of subsidy removal without fixing home refineries for local production will continue to aggravate the problem of pricing as the fluctuating international market forces coupled with the continued depreciation of the naira will push up the prices of fuel from time to time rather than reduce it as NNPCL is making us to believe. Only this week, marketers have declared that they could no longer cope with the N600/litter price regime because of the exchange rate; they therefore pushed for N720/litter.
THE effect of the above if allowed could be better imagined. Therefore, the mouth service given to local modular refineries must be replaced with active support, security and credit incentives for more productions that reduces the tonnes of importation and hence retail prices of premium motor spirit.
GIVEN that Nigerians have the capacity to produce for local and international consumption,government at all levels, within the context of the declaration of the state of emergency on food, should give unprecedented support to mechanised farming. Seeds, seedlings, and other farm inputs should be released to farmers with immediate effect at encouraging prices and terms. Furthermore, the cost of transportation to these farm areas through the provision of motorable roads, and mass transit systems should be employed.
FURTHERMORE, and in order to boost industrial production for quantitative and qualitative outputs, government should at this time engage in production and investment friendly tax policies. When the cost of doing business in Nigeria is favourable, the attraction of foreign direct investments for higher national income and enhanced gross domestic product would follow naturally. Also, taxes, rather than being used on unverifiable palliative administration, must be channelled to infrastructural ventures of national economic relevance.
TO this, we demand a revitalisation of the power sector, such that 95% of Nigerians must be able to access electricity for at least eighteen hours in a day. Given to the cut of power to Niger Republic, Nigerians must be able to enjoy the benefit of more light, while the impasse lasts. On a final note, it is imperative to warn that government should not take the resilient nature of Nigerians, and their patience towards a new government for granted, negligence and delay in the implementation of programmes of economic buoyancy may lead to the resurgence of social vices as well as avoidable economic and political sabotage.
