Protest against soaring cost of living under president Tinubu erupts in Nigeria

Labor unions marched across Nigeria on Wednesday to protest the soaring cost of living under the West African nation’s new president, with calls for the government to improve social welfare interventions to reduce hardship.

The unions, made up of government workers, said the economic incentives announced this week by Nigerian President Bola Tinubu to ease hardship were not enough. They also accused him of failing to act quickly to cushion the effect of some of his policies, including the suspension of decadeslong, costly subsidies that have more than doubled the price of gas, causing a spike in prices for food and most other commodities.

Tinubu on May 29 scrapped the subsidy that cost the government 4.39 trillion naira ($5.07 billion) while new leadership of the country’s central bank ended the yearslong policy of multiple exchange rates for the local naira currency, allowing the rate to be determined by market forces.

Both moves aimed to boost government finances and woo investors, authorities said. But they have had an immediate impact of further squeezing millions in Nigeria who were already battling surging inflation, which stood at 22.7% in June, and a 63% rate of multidimensional poverty.

“Since the subsidy removal, you can’t move from one place to another,” said Joe Ajaero, president of the Nigerian Labor Congress, the umbrella body of the unions. He was referring to the cost of transportation that has more than doubled in many cities, forcing a growing number of people to walk to work.

Ajaero said the labor unions have proposed an upward review of salaries but “the federal government has refused to inaugurate the committee on the proposal.“

“Mr. President can’t join the league of lamentations; he should come out openly and let us know those people who have cornered our commonwealth … and not to lament that some people have stolen our money,” said Ajaero, adding that the protest could continue for a long time.

One of the protesters, Usman Abdullahi Shagari, said he has been struggling to provide for his family, which includes five children, after the price of food items more than doubled.

“Feeding today is the most important thing,” said Shagari, 45. “Everything has increased, so that has affected the feeding of my family and my salary cannot withstand it.”

By Chinedu Asadu, AP

Related story: Fuel prices triple in Nigeria, squeezing millions already struggling

President Tinubu says scrapping fuel subsidy has saved $1.32 billion

Nigeria has saved over 1 trillion naira ($1.32 billion) in just over two months by scrapping a popular but costly subsidy on petrol and moved to unify its multiple exchange rates, President Bola Tinubu said on Monday.

Tinubu is under pressure as prices soar following the country's boldest reforms in decades, which labour unions say have hurt the poor.

A meeting between unions and government to try to avert a planned strike from Wednesday ended without an agreement late on Monday, union officials said.

In a television broadcast, Tinubu defended his decision to scrap the petrol subsidy, which he said benefited a few elites and that the reforms would help boost the economy.

"In a little over two months, we have saved over a trillion naira that would have been squandered on the unproductive fuel subsidy which only benefited smugglers and fraudsters," Tinubu said.

The president said he was aware of the hardship caused by removing the subsidy and was "monitoring the effects of the exchange rate and inflation on gasoline prices," adding that he would intervene if and when necessary.

The World Bank said last month Nigeria could save up to 3.9 trillion naira this year alone after Tinubu's reforms but warned of growing short-term inflationary pressures.

Unions are pressuring Tinubu to offer relief to households and small businesses. Tinubu announced a 500 billion naira package which includes mass transit buses and cheap loans to farmers and small businesses to boost employment.

Earlier on Monday, the government said it had released grains to families, directed authorities in public schools to defer hiking school fees and will provide buses to ease transport costs for students. It also plans to set up a fund from the subsidy savings to build infrastructure.

"Sadly, there was an unavoidable lag between subsidy removal and these plans coming fully online. However, we are swiftly closing the time gap," Tinubu said. 

By Felix Onuah, Reuters

Related stories: President Tinubu Unveils Broad Plan to Ease Cost of  Living Pain

Fuel prices triple in Nigeria, squeezing millions already struggling

Video - President Tinubu suspends some taxes on businesses

President Tinubu Unveils Broad Plan to Ease Cost of Living Pain

Nigerian President Bola Tinubu announced sweeping measures to soften the impact of his move to end gasoline subsidies that has sent prices surging.

The 500 billion-naira ($652 million) package is aimed at improving food supply, ease transportation costs and boost manufacturing. It will also provide conditional grants to at least a million small businesses.

“Our economy is going through a tough patch and you are being hurt by it,” he said Monday in a national address. “I understand the hardship you face. I wish there were other ways. But there is not,” the president told Nigerians in prepared remarks.

Read more: How Nigeria’s Leader Is Shaking Up a Shaky Economy: QuickTake

The cost of living in Africa’s biggest economy has surged since Tinubu announced on May 29 that fuel subsidies have been scrapped, tripling the price of gasoline. A subsequent devaluation of the naira has also fanned inflation, which quickened to 22.8% in the year through June.

Food-price inflation over the same period was more than 25% and frustration turned violent in Adamawa state in northeastern Nigeria on Sunday, where a 24-hour curfew was declared after youths looted a government warehouse where food is stored.

Tinubu, who has declared a state of emergency to tackle food security and supply, asked for patience in his speech.

“Sadly, there was an unavoidable lag between subsidy removal and these plans coming fully on line,” he said. “We are swiftly closing the time gap. I plead with you to please have faith in our ability to deliver.”

The end of the subsidy may help the country save more than 21 trillion naira ($21 billion) in two years, according to the World Bank.

Key Measures:

. 200 billion naira earmarked for agriculture to support the cultivation of 500,000 hectares (1.2 million acres) of land to produce rice, corn, wheat and cassava

. The administration will also provide 225,000 tons of fertilizer, seedlings and other farm inputs and release 200,000 tons of grain from its strategic reserve

. 75 billion naira of concessional lending to fund 75 manufacturers to “kickstart” growth

. 125 billion naira for micro, small and medium-sized enterprises, including 50 billion naira of conditional grants to 1 million nano businesses.

. 100 billion naira to purchase a fleet of 3,000 20-seater buses fueled by natural gas.

“I urge you all to look beyond the present temporary pains and aim at the larger picture,” Tinubu said. “All of our good and helpful plans are in the works. More importantly, I know that they will work.”

In addition, he said the administration is working with labor unions to introduce a new minimum wage.

The Nigerian Labour Congress has called for nationwide protests starting Aug. 2 over what it calls “anti-poor” policies. But the action faces a court injunction and the NLC is holding talks with authorities.

Bloomberg

Video - Police warn of possible rise in crime across Nigeria

Police in Nigeria are warning of a possible increase in the rate of crime across the country. Law enforcement attributes this to the rising cost of petrol, which is affecting their patrols and other operations.

CGTN 

Related story: Video - Is Nigeria's security crisis out of control?

 

President Tinubu orders investigation of Central Bank of Nigeria

Nigeria's President Bola Tinubu has appointed a financial watchdog to investigate the central bank, weeks after he suspended its governor, a copy of a letter from the president showed on Sunday.

Tinubu on June 9 suspended Godwin Emefiele, who was then detained by state security agents for allegedly misappropriating funds and a "criminal breach of trust." Emefiele last week appeared in court to deny illegally possessing a firearm and ammunition.

In a letter dated July 28, Tinubu appointed the chief executive of Nigeria's Financial Reporting Council as special investigator of the Central Bank of Nigeria (CBN) and other government-owned entities.

The letter said the investigator should make weekly reports to the president.

"You are to investigate the CBN and related entities using a suitably experienced, competent and capable team and work with relevant security and anti-corruption agencies to deliver on this assignment," Tinubu said.

The investigator was to "provide a comprehensive report on public wealth currently in the hands of corrupt individuals and establishments."

A presidency source confirmed the authenticity of the letter.

Tinubu's spokesperson Dele Alake did not immediately comment.

Tinubu has embarked on the country's boldest reforms in decades, including removing a popular but costly fuel subsidy and lifting restrictions on foreign exchange trading, a gamble which he hopes will boost growth.

By Felix Onuah, Reuters

Related stories: Suspended central bank governor of Nigeria denies firearm charges

Critical mistakes made by central bank of Nigeria in cash swap

Video - Supreme court suspends currency swap deadline in Nigeria