Atiku: Economy has worsened under Tinubu | ‘Renewed hope agenda’ mere propaganda

Atiku Abubakar, former vice-president, says the nation’s economy has worsened under President Bola Tinubu.

In a statement appraising the president’s one year in office, Abubakar said despite high hopes when Tinubu assumed the reins last May, Nigeria is worse off. 

The former presidential candidate said Tinubu has “embarked on a cocktail of policies” with no concrete plans to achieve the remodelling of the economy he promised.

“Predictably, 12 months on, Tinubu’s pledge of growing the economy and ending misery remains unfulfilled. His actions or inactions have significantly worsened Nigeria’s macroeconomic stability,” Abubakar said. 

“Nigeria remains a struggling economy and is more fragile today than it was a year ago. Indeed, all the economic ills — joblessness, poverty, and misery — which defined the Buhari-led administration have only exacerbated.

“Africa’s leading economy has slipped to the 4th position lagging behind Algeria, Egypt, and South Africa.

“Citizens’ hopes have been dashed, and not renewed contrary to the propaganda of the administration, as Nigeria’s economic woes have multiplied.

“In my press statement on the state of our economy, earlier this year, I expressed my concerns about the downside risks of unleashing reforms without sequencing, without any ideas on how to implement them, and without any regard to their potential and real devastating consequences.

“Implementing policies without proper planning and a clear destination is nothing other than trial-and-error economics.

“First, President Tinubu’s policies do not create prosperity. Instead, they pauperize the poor and bankrupt the rich. They spare no one.

“Nigerian citizens, the majority of whom are poor, are going through the worst cost-of-living crisis since the infamous structural adjustment programme of the 1980s.

“Second, President Tinubu’s policies create a hostile environment for businesses, big or small. The private sector is overwhelmed by Tinubu’s dismal policies and overburdened by his failure to address the policy fallouts.

“The manufacturing sector, which holds the key to higher incomes, jobs, and economic growth, has been bogged down by rising input prices, higher energy and borrowing costs, and exchange rate complexities.

“For example, since 2023, the average price of diesel has doubled to N1,600 per litre. Electricity tariff has recently been increased by 250% from N68/Kwh to N206/Kwh.”

Abubakar lamented the number of multinational companies that have left the country.

“In an economy with high rates of unemployment, a declining manufacturing sector cannot be an option,” he said. 

“Third, president Tinubu’s foreign exchange policies have not had any positive impact on Nigeria’s foreign trade balance, contrary to policy expectations.

“In particular, the free float and the resulting devaluation of the Naira have not resulted in an appreciable improvement in Nigeria’s trade balance. 

“Devaluation has not enhanced the competitiveness of local producers and has had no positive impact on exports of goods, primary or manufactured.

“Despite deploying various monetary policy tools, inflationary pressure persists, and so does exchange rate volatility. No thanks to Tinubu’s misguided policy, the naira’s value plummeted against the dollar and has since become the worst performing currency in the world.”

Abubakar said Tinubu and his team are not “exactly sure of where the reform process is and what the next steps are”.

“These trial-and-error policies raise questions about the readiness of the administration and their capacity to restore the economy to a path of sustainable growth,” he added.

“Time is running out for the government, and Tinubu must act fast to save the economy.”

‘WHAT TINUBU SHOULD DO’

Abubakar recommended six things the president should do to address the situation.

He asked Tinubu to “pause and reflect, undertake a comprehensive review of the 2024 budget within the new reform framework, undertake a comprehensive review of the social investment programmes (SIP) to mitigate some of the impact of these policies on the most vulnerable households”.

“Stop introducing new taxes or increasing tax rates, provide clarity on the fuel subsidy regime, including the fiscal commitments and benefits from the fuel subsidy reform and the impact of this on the federation accounts, and lastly, tackle security headlong,” Abubakar said. 

“I have always been a reform advocate. The Nigerian economy certainly requires a large dose of reform measures to accelerate its transformation after many years of lacklustre growth.

“I was prepared for reform fallouts. Tinubu wasn’t. However, it is not too late for him to change course and do what is right for the good of our people and our nation.”