Globally, it is acknowledged and accepted that the welfare of citizens is the essence of governance. Therefore, every citizen has the legitimate right to expect or demand that government at all levels formulate and implement policies that will positively impact his life.
Since the inception of the current administration in 2023, Nigerians have experienced a not-too-sweet standard of living, particularly in 2024 when the full impact of the implementation of some difficult government economic policies became more evident. Top of these were the effects of the twin policy of the withdrawal of fuel subsidy and the floatation of the nation’s currency, the Naira.
The combined effects of these policies fuelled inflation and a reduction in the purchasing power of citizens. These, in turn, led to higher cost of living and a lowering of the standard of living of Nigerians. These developments inexorably questioned assumptions on government’s obligation to promoting the good of the people.
The Federal Government of Nigeria was quick to acknowledge the pains brought on by the effects of its economic policies, hence the promise of people-centred economic policies in 2025 and beyond. But the actions of the government since the beginning of 2025 point to the contrary, and evidence abound to support this position.
The introduction of 4% FOB custom levy, which is supported by the Custom Act is a good example. This levy, which is supposed to be the revenue collection cost, is already being covered by a first line budgetary deduction on the country’s consolidated revenue, just like the FIRS revenue collection cost. Without argument, this levy is being implemented at the wrong time. For one thing, the devaluation of the Naira and its consequential high import duty have already shot up the cost of importing goods. For another, end users will further be burdened with the resultant effect of higher cost.
Only recently, the Nigerian Ports Authority (NPA) increased its charges by as much as 15%. This, too, will lead to higher cost of goods, higher cost of living and, ultimately, lower standard of living.
The story does not end there. In the horizon are expected increases in electricity and telephony tariffs in utter disregard of both being essential daily components of the cost and standard of living.
At the presentation of the 2025 budget, Mr. President spoke of his administration’s plan to reduce inflation from over 30 percent to 15 percent in the current fiscal year. While this is commendable, it is hard to see how the objective can be achieved in the light of increasing cost of production.
Hitherto, the growing stability in the exchange rate and relative stability in the very volatile oil sector gave hope for significant stability in macroeconomic management. But that hope has been dimmed by the impact of the relative increase in the cost of doing business within the economic sphere.
Despite the endless conflicting policy signals, the central government expects full compliance from individual and corporate citizens based on patriotic sentiments. On the other hand, the citizens, too, are insistent on reserving their right to good governance. It thus remains to be seen how the expectations of both sides can be met or managed in the face of government’s dwindling revenue and the eroded purchasing power of the people.
