The Federal Government is making adjustments and addressing public concerns following the Cost-of-Living protests that shook the nation in early August, according to economist Bismark Rewane.
Speaking at the Lagos Business School during his monthly presentation titled “Cost of Living Protest: Was It Politically Motivated or Hunger Induced?”, Rewane, CEO of the Financial Derivatives Company, outlined the government’s response, including measures such as a stimulus package, increased minimum wage, stabilization efforts, and duty waivers on essential goods. These steps, he believes, are indicative of the government’s recognition of the public’s struggles and could ease the burden of rising living costs.
Rewane highlighted that the recent National Council of State meeting, along with discussions with the Patriot Group, shows the government’s intention to engage more with various stakeholders. He noted that the waiver on import duties for key commodities will likely lead to lower prices, which would, in turn, reduce production costs. He also pointed out that the naira’s performance in the forex market has stabilized, showing early signs of modest appreciation.
According to Rewane, the government, under the leadership of the All Progressives Congress (APC), has faced significant challenges, with the state of the economy being a major issue for the ruling party. He said the leadership is now facing the economic reality and responding with greater transparency, releasing more economic data with improved integrity. He also mentioned that the government’s conciliatory approach is beginning to show results, and leadership changes at the management level are likely.
Rewane explained that the high cost of living reflects a situation where everyday expenses, like groceries and bills, increase faster than household incomes. This situation not only affects the public but also creates challenges for businesses by increasing their operational costs, reducing investment, and limiting growth opportunities.
He pointed out that the high living costs are also linked to a broader economic crisis, which stems from factors such as widespread poverty, a lack of trust in government, and ineffective policy implementation. He emphasized that the government’s policies should be coupled with institutional reforms and a more coordinated economic plan to tackle these challenges effectively. He also stressed the need to reduce government excesses and ensure a fair distribution of the burden across society.
Rewane further noted that relying on IMF-backed policies has often been associated with increasing hardship, particularly for low-income groups in Nigeria. He traced the country’s adoption of IMF policies back to the 1980s, when Nigeria faced serious economic difficulties and turned to Structural Adjustment Programs (SAP), which included measures like currency devaluation, reduced government spending, and trade liberalization.
