National Wire About Nigerians, Nigerian Business and Other Stories
Wale Ajayi, Partner and Head of Tax Regulator of People Services at KPMG, has provided a critical analysis of President Bola Tinubu’s recent speech during a television appearance on MONEYLINE with Nancy Nnaji on
African Independent Television (AIT) on Monday.
Ajayi’s commentary focused on the President’s policy announcements and achievements, emphasizing that these have not significantly impacted the daily lives of many Nigerians.
“If you are asking Nigerians to tighten their belts, you also have to look at the cost of governance. We have to look at transparency. Those were issues that were not addressed in that speech,” he noted.
Responding to the President’s claim that Nigeria’s revenue has increased in the first half of 2024, Ajayi said, “It is not enough for the President to say that revenue in Nigeria has gone up or has tripled. We are looking at N9 trillion in revenue as at half year but what he did not talk about is deficit; where we are in respect to expenditure. Income has gone up, but what about expenditure?”
Ajayi highlighted a significant communication gap between the President’s policy initiatives and the general public. He noted that despite the numerous policy announcements made by President Tinubu, many Nigerians remain uninformed about these measures due to their limited visibility and perceived impact on everyday life. This gap in communication, Ajayi argued, undermines the effectiveness of the policies and contributes to widespread public confusion and discontent.
“There are so many issues that the government is looking at, what are the stimulus packages? There are so many things the President said they are doing, but there is not much awareness about who is benefiting, because when you ask people around, nobody can point to someone that has benefited from these stimulus packages and that is really where we have a problem.
“There is a deficit gap, there is information gap from what the President is saying and what people are feeling in their wallet and in their bellies. That is what is missing in that President’s speech,” he explained.
One of Ajayi’s primary concerns was the ongoing cost of living crisis. He stressed that immediate relief is needed for the population to cope with the escalating expenses of daily necessities.
According to him, the government’s current policies have yet to provide substantial relief, which is crucial for alleviating the economic burdens faced by ordinary Nigerians. He called for greater transparency and improved communication to ensure that the government’s actions are clearly understood and appreciated by the public.
The analyst felt the President ought to have addressed the country before the protest began.
“I think he probably should have spoken before the protests started. The people were expectant, they expected something much more than that. The President did not address those policies. Things they are putting in place are working, but it’s going to take time but how much time are we willing to give this government?
“People are saying they need to see signs that this government means business. I spoke about transparency. I think the biggest challenge that people cannot relate with is that the government speaks about the need for us to tighten our seat belts, but they can’t see what the government is doing to reduce the cost of governance. They can’t connect with what the government is saying and what it is doing. There appears to be a disconnect and I empathize with that,” he said.
Ajayi also addressed several pressing issues within the manufacturing sector. He identified power shortages, high borrowing costs, and difficulties in accessing foreign exchange as major barriers to manufacturing growth. He suggested that without addressing these fundamental challenges, government initiatives, such as the N1 billion loan aimed at boosting manufacturing output, may not achieve the desired results. He argued that these core problems need to be tackled head-on to foster a more conducive environment for industrial development.
Additionally, Ajayi turned his attention to the agricultural sector, which he believes also requires urgent intervention. He emphasized the need for improved security, better infrastructure, and the adoption of innovative practices to tackle food inflation. He however supported the removal of fuel subsidies but called for clarity on how the savings from subsidy removal are being utilized. He advocated for a transparent approach to ensure that the funds are directed towards initiatives that will benefit the public and address critical needs within the agricultural sector.
Expressing concerns about the persistent fuel subsidy, he said, despite the government’s assertions that the subsidy has been removed, Ajayi argued that the reality suggests otherwise. He noted that ongoing financial support for fuel prices continues to indicate the presence of a subsidy.
Highlighting the necessity of a complete removal of the subsidy to create a more efficient market, he proposed redirecting the saved funds towards critical infrastructure development in Nigeria, which he believes would have a more substantial and positive impact on the country’s economy.
He argued that subsidies should be strategically redirected from consumption to the production sector. He suggested that while the government claims to have removed the fuel subsidy, its continued existence primarily benefits consumption rather than production. By reallocating these funds to support the production sector, including investments in manufacturing and infrastructure, Ajayi believes that the economy would benefit from increased economic growth, job creation, and overall improvement in living standards. He emphasized that this approach would address the root causes of inflation and lead to a more sustainable and efficient economic environment.
In summary, Ajayi’s critique underscores the need for improved government communication and transparency, particularly regarding the impacts of policy measures on the daily lives of Nigerians. He called for a more effective approach to addressing the cost of living crisis, manufacturing challenges, and agricultural sector needs.
He also advocated for the complete removal of fuel subsidies and the strategic reallocation of funds to support production and infrastructure development. His analysis highlights the importance of aligning government policies with the real needs of the populace and ensuring that the benefits of such policies are clearly communicated and effectively realized.
