ANALYSIS: How Tinubu’s actions doused #EndBadGovernance protest tension

Kunle Sanni

Last Thursday, thousands of Nigerians took to the streets in a powerful display of discontent, protesting the rising cost of living across the country. Demonstrations erupted in major cities, including the capital, Abuja, and the commercial hub, Lagos, where citizens expressed their frustrations over hunger and poor governance using the hashtag #EndBadGovernance. The protests were fueled by high inflation, exacerbated by the removal of the fuel subsidy.

Protesters also demanded the reversal of key policies implemented by President Bola Tinubu’s administration, particularly the removal of the fuel subsidy and the floating of the naira, both of which the protesters said have impacted the cost of living in Nigeria significantly.

The protests, which were led by a coalition of civil society groups under the banner of the ‘Take It Back Movement,’ lasted nearly a week. However, the demonstrations were abruptly halted after President Tinubu delivered a public address to the nation. In a charismatic appeal, the President urged an end to the protests and invited the young leaders to engage with the government in productive dialogue, assuring them that their demands would be considered.

Highlighting snippets of his speech, President Tinubu acknowledged that some crucial issues raised by the protesters were already being addressed by governments at all levels, aiming to improve citizens’ living standards in a peaceful and secure environment.

The president urged protesters to stop and engage in dialogue with the government and expressed regret over the unrest and the loss of lives, particularly in states such as Borno and Kano, condemning the violence and destruction of public property. He explained the decision to remove fuel subsidies and multiple foreign exchange rates to curb greed and undue subsidies.

The president reeled out some proactive steps his administration has taken in one year towards addressing some of the demands of the youths, including the removal of tariffs on essential food imports, the distribution of fertilizers to farmers, and the cultivation of over 10 million hectares of land to boost food production and achieve food and nutrition security.

Actions before the protest
Amid the ongoing planned protests, President Tinubu has taken several steps to address the rising discontent for August 1, he announced the establishment of centres across the country where Nigerians can purchase a 50kg bag of rice for N40,000, aiming to ease the burden of high food prices.

Additionally, the President directed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to the Dangote Refinery and other upcoming refineries in naira, as part of efforts to stabilize the economy and reduce the impact of the recent policy changes.

The Nigerian government, through the Ministry of Youth Development, has reopened applications for the Nigeria Youth Investment Fund (NYIF). Initially established in 2020 with a ₦75 billion budget, the NYIF aims to empower youth and create 500,000 jobs by 2023. The fund began with a seed capital of ₦12.5 billion.

Also, President Bola Tinubu signed a new Minimum Wage Act, setting the wage at ₦70,000 and allowing for a review every three years, a move praised by policy experts. To highlight these achievements, the Minister of Information, Mohammed Idris, launched a campaign, including visits and press conferences.

Moreover, the Supreme Court recently affirmed the financial autonomy of Nigeria’s 774 local governments, a decision widely welcomed as a relief to local authorities previously controlled by state governments.

The issues
On May 29 of last year, Mr Tinubu declared the removal of the petrol subsidy, which caused the price of petrol to rise by about 200 per cent, from roughly N200 to over N500. The president also unified the exchange rate policy in June of last year.

Before this incident, the subsidy regime largely cost the nation billions without accountability. In a similar vein, it was found that some websites that track foreign exchange were being utilised to influence exchange rates in Nigeria.

To assuage the impact of his policies, the President promised the state governments that, among other things, his administration would give the manufacturing sector N75 billion and approved N5 billion for each state and the Federal Capital Territory (FCT) to enable them to procure food items for distribution to the poor in their respective states.

In fighting corruption, the Tinubu administration has reeled out some anti-corruption policies to curb the long years of corruption in Nigeria.

Shortly after taking office, President Bola Tinubu quickly implemented reforms to regulate Nigeria’s Bureau De Change (BDC) operations after taking office. The Central Bank of Nigeria (CBN) introduced new guidelines requiring individuals selling $10,000 or more to BDCs to declare the source of their foreign exchange.

The CBN also established a two-tier system for BDCs, with differing capital base requirements and stricter operational rules, including a ban on street trading of foreign currencies.

These actions were part of a larger effort to curb illegal currency trading, involving collaborations with the Economic and Financial Crimes Commission (EFCC) and the National Security Adviser (NSA). As a result, the naira experienced significant appreciation, becoming the world’s best-performing currency by March, according to Goldman Sachs.

Nigeria’s oil production surged to 1.57 million barrels per day between January and March, the highest since September 2021, thanks to successful measures against oil theft and other industry challenges. This increase marks a significant recovery for a sector crucial to the nation’s economy, boosting revenue and supporting public expenditures.

Navy Chief of Policy and Plans, Joseph Akpan, had highlighted the impact of the Nigerian Navy’s operations against oil theft, noting that in the past nine months, several suspects and vessels involved in crude oil theft (COT) have been arrested, including vessels such as MT KALI, MT SWEET HARBOUR SPIRIT, and MV TOKITO.

Amidst nationwide hunger protests, the country faces a crucial phase in its fight for economic justice. Dialogue and reforms are essential to address soaring food prices, economic hardships, and loss of lives even as the Tinubu-led administration has reaffirmed it’s committed to balancing public order with addressing legitimate grievances and fostering equity.