Nigeria@64: CDD Calls for Urgent Reforms To Reflate Economy, Tackle Insecurity, Other Key Governance Challenges
PRESS STATEMENT
1st October, 2024
Nigeria@64: CDD Calls for Urgent Reforms To Reflate Economy, Tackle Insecurity, Other Key Governance Challenges
(Abuja, Nigeria) As Nigeria commemorates 64 years of independence from British colonial rule, the Centre for Democracy and Development (CDD West Africa) joins all Nigerians in celebrating this momentous and historic occasion. October 1, 1960 was the date the British Union Jack was lowered for the hoisting of the green and white flag of Nigeria. This historic moment symbolises Nigeria’s freedom from British over-lordship.
Notwithstanding the myriad of challenges facing the country 64 years after, the anniversary is worthy of the commemoration of the valiant efforts of Nigeria’s nationalists as well as presents an opportunity for the citizens to reflect on the nation’s journey, achievements, and the significant challenges it faces.
In the spirit of this reflection, there can be no gainsaying the fact that one of the most pressing issues confronting the country is the dire strait of the economy. Since the coming on board of the Presidency of Bola Ahmed Tinubu in May 2023, and the immediate announcement of the removal of petrol subsidy and the floating of the Naira, the economy has been in a tailspin. In particular, the exchange rate has seen the national currency, the Naira, experiencing serious haemorrhage against the United States Dollar and other international currencies. The result has been the astronomical rise in the prices of essential goods and services, including food and healthcare. Nigerians have thus been subjected to excruciating pains as incomes have been literally dwarfed by the high cost of living.
Added to these dire economic circumstances, is the hike in electricity tariffs, which has had a serious effect on small and medium businesses in the country. CDD West Africa notes that while the government has attempted to introduce measures to stem the tide of ongoing economic deterioration, the impact of those efforts has not been far-reaching enough. Multi-dimensionally poor Nigerians have been left behind, just as families struggle to make ends meet in terms of being able to afford basic necessities of life, such as food, housing, healthcare and education. Currently, 84 million Nigerians live below the poverty line of US$2 a day. This economic crunch is driving up unemployment and limiting opportunities for social mobility. The National Bureau of Statistics (NBS), the agency of government which oversees and publishes statistics for Nigeria, reported a rise of 5.3% in the country’s unemployment rate in Q1 2024, compared to 5% in the previous quarter; thus posing a real threat to citizens’ welfare and overarching development priorities.
CDD-West Africa notes that Nigeria’s energy sector, despite its vast potential, has become one of the most opaque sectors and the most poorly managed among its peers in the world.. Despite the passage of relevant legislation, Nigeria’s reliance on fuel imports, even as one of the world's largest crude oil producers remains a frustrating paradox, which has hindered growth for decades. The 2023 removal of fuel subsidies, while necessary to reduce the fiscal burden, has caused petrol prices to soar, averaging ₦962 per litre, with a cascading effect on transportation and production costs. This inflationary pressure has strained an already fragile economy, hitting small businesses hardest and eroding their profitability. As a result, job creation has transcended stagnation under the Muhammadu Buhari administration to worsening unemployment and income inequality. Furthermore, the absence of functional refineries forces Nigeria to deplete its foreign exchange reserves to import fuel, putting further pressure on the Naira and limiting critical investments in infrastructure, education, and healthcare. These inefficiencies have trapped the economy in a cycle of underperformance, highlighting the urgent need for structural reforms to unlock Nigeria’s energy potential and foster sustainable economic growth.
Added to the dire economic situation is the fact that Nigeria is facing a security crisis of unprecedented proportions, with around 3.3 million people displaced due to conflict and violence by the end of 2023. In the North-East region, Nigeria’s gallant men and women of the armed forces have been doing their bit to vanquish the decades old insurgency. However, violent non-state actors, including Boko Haram insurgents, and the armed bandits operating in the North West have combined to make life nasty, brutish and short. While CDD-West Africa commends recent operations by the security forces, which led to the killing of top bandits leaders, we call on the government to do more in the area of countering violent extremism and stopping the supply lines of the outlaws. In the South-East region, we call for similarly robust measures to win the hearts and minds of the youth being recruited daily into the camps of secessionist agitators.
CDD-West Africa notes that kidnappings for ransom have become an endemic problem, affecting both rural and urban communities across the country. This unchecked rise in insecurity has left many Nigerians feeling abandoned by the government, further deepening pervasive fears and instability in the country. The security crisis has also dealt a severe blow to the economy, especially in sectors such as agriculture and trade, where widespread violence has disrupted farming activities, including making it nearly impossible to transport goods to markets and further compounding the economic woes of affected communities.
Subsequently, it is pertinent to state that Nigeria’s political system continues to grapple with deep-rooted dysfunction, manifesting in bad governance associated with rampant corruption, and a flawed electoral process. Some of the age-long challenges in the democratic process reared their ugly heads during the September 21, Edo State governorship election during which CDD-West Africa observed incidents of vote buying, use of identity-driven disinformation, and discrepancies in the election results in some polling units. Despite the introduction of technology into the electoral process, the exercise only exposed the full extent of the failure to reform the process and guarantee that citizens’ votes truly count. The erosion of trust in democratic institutions has fuelled widespread apathy, particularly among the youth, who constitute a significant portion of the electorate.
Furthermore, the undermining of press freedom has become increasingly alarming. Nigeria currently ranks 123rd out of 180 countries in the 2024 World Press Freedom Index, reflecting a significant decline in journalists’ freedom to freely and safely report. Media houses and journalists often face harassment, intimidation, and arrests for covering sensitive political issues, while restrictive laws stifle independent reporting. A free and independent press is the bedrock and bulwark of a functional democracy, and without it, the public’s access to accurate and unbiased information is severely compromised. The effects of these challenges have been accentuated by the culture of impunity, lack of accountability and continual alienation of historically marginalized demographics (i.e women, youth and persons with disabilities) from the democratic and key governance processes.
As Nigeria navigates this difficult juncture at 64, CDD-West Africa believes no extent of blame-gaming can solve the problems. It is therefore imperative for Nigerians, both at home and in the diaspora to work collectively to hold duty bearers accountable. On its part, the government must tackle corruption through an effective strategy. Other spheres of governance and electoral reforms must be made a top priority. Strengthening institutions that promote transparency and accountability will help restore public trust, while ensuring free, fair, and credible elections. These constitute vital safeguards for Nigeria’s democracy and its electoral process.
CDD-West Africa wishes Nigerians a happy 64th Independence anniversary
Dauda Garuba, PhD
Director, CDD-West Africa.