Nigerians are grappling with hardship that emerged from economic policies and reforms put in place by President Bola Tinubu since he assumed office on May 29, 2023.
On the day of his inauguration, Tinubu announced the removal of fuel subsidy which forced high prices and scarcity of premium motor spirit popularly called petrol in the country.
Subsequently, the prices of transport and other commodities in the country have gone up, putting untold hardship on millions of Nigerians.
In June 2023, the President also introduced some other reforms such as the unification of official and parallel market exchange rates, among others.
Meanwhile, Tinubu and his economic team have assured Nigerians that these policies will yield results, and that Nigerians should be patient despite high inflation, high unemployment, depreciation of the naira, and others.
In this article, Vanguard exposes seven risks that Nigerians face as the economy worsens if no urgent measures are implemented.
1. Business closure: Almost all businesses are already in distress in the country as the cost of operation is high. Prices of commodities are skyrocketing and business owners are groaning. If this is not addressed, more businesses can cease to operate permanently or temporarily.
2. Loss of jobs: When there is closure of businesses, job losses are bound to happen, as business owners will begin to retrench or sack employers to cut costs.
3. Spread of crime: When there are no jobs, a lot of people tend towards criminal activities such as theft, fraud, violence, or cybercrime, leading to harm, loss, or disruption to individuals or organisations.
4. Multinational companies divestiture: There is a likelihood of large corporations or multinational companies withdrawing their investments, operations, or assets from the country if the costs of production and operations are too high. It is public knowledge that most of the companies run diesel, and the price has gone up.
5. Possibility of $1 to N2,000: There is a probability that a continued significant impact on Nigeria’s local currency, the naira, could make it exchange for up to N2,000 to a United States dollar before June 2024.
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6. Fuel price hike: With the incessant scarcity of fuel in major cities in Nigeria, the people are likely to further increase the cost of fuel. This would definitely impact transportation costs, production expenses, and consumer prices, potentially leading to economic hardship.
7. Inflation: In mid-February 2024, the National Bureau of Statistics, NBS, announced that the country’s inflation hit 29.90 per cent in January. And with the current economic conditions, the consumer price index may continue its downward spiral, increasing to 35% before mid-2024 if not combated.
While these risks are under possibility, it is not to scare Nigerians, rather it calls for urgent attention from the economic team and the stakeholders in the government to guard against them.
