Connect with us

News

Subsidy Gone, Hardship Remains: Economist Blames Policy Missteps, Debt Burden for Nigeria’s Deepening Crisis Amid Tinubu’s Borrowing

Published

on

 

By Yusuf Danjuma Yunusa

Amidst growing public discontent over persistent economic hardship and the Federal Government’s continued reliance on borrowing, former Central Bank Governor and current Emir of Kano, Sanusi Lamido Sanusi, recently questioned the logic behind President Bola Tinubu’s borrowing spree despite the removal of the long-criticised fuel subsidy.

In an exclusive interview with our correspondent, a prominent economist and financial analyst at a reputable establishment, AbdulWahab Olalekan, dissected the paradox, arguing that the administration’s promises to “stop the hemorrhaging” have yet to materialise because the wound has only been relocated.

When asked whether this economic dislocation is driven by global forces or local mismanagement, Olalekan did not mince words. He attributed the severity of the current hardship primarily to “local structural deficiencies and poor policy sequencing”—specifically the twin shocks of subsidy removal and foreign exchange (FX) liberalisation.

“The relocation of this hardship is primarily the result of local structural deficiencies and policy sequencing (FX liberalisation shock following subsidy removal), though it has been heavily compounded by global economic headwinds,” Olalekan said.

Advert

He stressed that most economists agree the removal of the subsidy was a long-overdue necessity. However, the problem, he explained, lies in the “blunt execution of the transition.” He pointed to two critical domestic failures: the absence of effective social safety net programmes to cushion the blow for ordinary Nigerians, and the country’s “huge debt servicing blackhole” which has swallowed much of the revenue that should have trickled down to the populace.

“The severity of the current hardship is less about the removal of the subsidy itself… and more about the underlying fragility of the Nigerian economy and the blunt execution of the transition. Notably, failure to provide effective social safety net programmes to cushion impact and the fact that the country’s huge debt servicing blackhole sucked some of the subsidy revenue that should typically have trickled down to the average Nigerian,” he explained.

But while local dynamics set the stage, the economist acknowledged that global macroeconomic forces have acted as a devastating multiplier. He noted that the current high global interest rate environment has forced emerging markets like Nigeria to borrow at an expensive premium, further worsening the fiscal picture. Additionally, sticky global inflation has directly fed into Nigeria’s import-dependent economy, accelerating imported inflation.

“The high global interest rate environment meant that countries in the emerging and frontier markets like Nigeria had to borrow at an expensive premium further exacerbating our fiscal picture while the stickiness of global inflation meant increased imported inflation since we are largely an import-dependent nation,” Olalekan stated.

He, however, offered a sliver of relief, observing that the inflation trajectory would have been even worse were it not for the operationalisation of the Dangote Refinery and certain reforms introduced by the Central Bank of Nigeria (CBN).

“Thanks to the Dangote Refinery and some of the CBN reforms, the inflation situation could have been worse,” he concluded.

As the Tinubu administration continues to defend its borrowing plan in the face of mounting scrutiny, Olalekan’s diagnosis suggests that without fixing domestic structural flaws and providing tangible relief, removing the subsidy alone will remain a repositioning of pain rather than a cure.

News

Beyond Connectivity: How a Community Network Is Changing Life in Dakwa

Published

on

 

By Ali Sabo

Dakwa is the kind of community that can easily be overlooked in Nigeria’s digital story.

Located along the Zuba–Dei-Dei–Zuma corridor of the Federal Capital Territory, the agrarian community is only about 29 kilometres from Abuja, yet proximity to the nation’s capital has not always translated into access to reliable and affordable internet. For many residents, particularly young people, accessing the opportunities of the digital world meant looking beyond their immediate environment.

That is beginning to change.

Through the efforts of the Centre for Information Technology and Development (CITAD), the Association for Progressive Communications (APC), Hello World and 48 Percent, a community network and internet hub was established in Dakwa, bringing affordable connectivity closer to residents and creating a space where people can use the internet for learning, communication and accessing opportunities.

But the real story of the Dakwa Community Network is not the infrastructure. It is what the people of Dakwa are beginning to do with it.

During a recent visit to the community, the District Head of Dakwa, Alhaji Shuaibu Samu, described the intervention as a “life-changing opportunity” for residents.

His description is rooted in what the community experienced before the hub came into existence.

“Before the establishment of this facility, access to reliable and affordable internet was a major challenge for our people.”

For a community increasingly connected to a world where education, employment, communication and access to information are moving online, that challenge carries consequences. Being offline or poorly connected does not simply mean having no internet. It can mean missing opportunities that others take for granted.

Today, Samu says the situation is changing.

“Now, our youths can access information, learn new skills and explore opportunities online without having to travel far from the community.”

That statement captures perhaps the most important change taking place in Dakwa: the world of opportunities is becoming physically closer to the people who live there.

A window beyond Dakwa

For Ismail Shuaibu, a Community Champion at the hub, the facility has already become part of the community’s daily life.

He explained that young people now use the hub to study, search for jobs, access online opportunities and communicate with others.

“Many young people now come here to study, search for jobs, access online opportunities and communicate with others.”

Advert

These may sound like simple activities. But in a community where reliable and affordable internet was previously a major challenge, they represent something much bigger.

A young person who comes to the hub to search for a job is no longer limited to opportunities advertised within the community. A student who comes to study can access information and learning resources that may not be available locally. Someone looking for information can reach beyond the boundaries of Dakwa and engage with a much wider world.

In that sense, the community network is not merely connecting devices. It is expanding people’s horizons.

From a project to a community asset

Perhaps equally important is the way residents are beginning to see the facility.

Ismail explained that the hub operates through a community-driven model, with users paying a small fee that contributes to maintaining the equipment and keeping the service running.

“The idea is for the community to see this as its own facility. The small amount paid by users helps us maintain the equipment and provide the service continuously.”

This is significant.

Many development interventions struggle after external support ends because the communities that benefit from them were not sufficiently involved in their ownership or management. Dakwa is attempting a different path: making the community part of the solution.

The District Head has also called on residents to take ownership of the facility and support efforts to keep it operational.

That sense of ownership could ultimately determine whether the digital opportunity created in Dakwa becomes a temporary intervention or a lasting community institution.

The real measure of digital inclusion

Dakwa’s experience offers a broader lesson about digital inclusion in Nigeria.

For years, discussions about the digital divide have often focused on infrastructure, broadband coverage and the number of people connected to the internet. These are important measures, but they do not tell the whole story.

The more important question is: What changes when people get connected?

In Dakwa, the early answers are emerging from the residents themselves: young people are studying, searching for jobs, accessing opportunities, communicating and becoming more familiar with digital tools and online services.

The organisations that helped bring the community network into existence deserve recognition for creating that opportunity. But the most important voices in determining its impact are those of the people who now use it.

And their testimonies suggest that something deeper than internet access is taking place.

Dakwa is beginning to discover that distance does not necessarily have to determine opportunity.

A young person can live in a community outside the centre of Abuja and still search for employment online. A student can access learning resources without travelling to the city. A resident can communicate, find information and explore opportunities that were previously difficult to reach.

That is what meaningful connectivity should ultimately achieve.

The success of Dakwa’s community network will not be measured simply by how many people connect to it. It will be measured by how many possibilities people discover because they can.

And perhaps that is the most important transformation happening in Dakwa: the internet is not only bringing the wider world into the community. It is giving the people of Dakwa a stronger opportunity to reach out and participate in that world.

Ali Sabo is the Campaign and Communication Officer of the Centre for Information Technology and Development and can be reached at asabo@citad.org

Continue Reading

News

Kenyan Presidential Aspirant Warns Dangote: ‘Don’t Rush Lamu Refinery, I’ll Send You Back to Nigeria’

Published

on

 

By Yusuf Danjuma Yunusa

A man identified in a viral video as Kenyan presidential aspirant Patrick Osoi has sparked a heated online debate after warning Nigerian billionaire Aliko Dangote not to rush into establishing an oil refinery in Lamu, saying he would send the businessman back to Nigeria if elected president.

In the clip, said to have been recorded at a Lions Movement event, Osoi says: “I want to tell Aliko Dangote, please don’t rush to start the refinery because, when I’m sworn in as President of Kenya next year, you will be heading back to Nigeria.”

The remarks appear to reference a proposed $16 billion refinery project in Lamu, a coastal county that Kenya has promoted as a future hub for oil and gas infrastructure. Osoi argued that Kenyan investors have the capacity to build and run such a facility without foreign ownership.

Advert

“We don’t need to beg foreigners to develop our resources,” he said, according to a partial transcript of the video. “Kenyans can do it.”

The video has been shared widely on Facebook, X and WhatsApp, drawing mixed reactions. Supporters praised Osoi for what they called a bold defense of economic sovereignty. Critics warned that the comments could scare off foreign investors and strain Kenya’s diplomatic and trade ties with Nigeria.

Dangote, Africa’s richest man and chairman of Dangote Group, has not publicly responded to the clip. His conglomerate operates one of the world’s largest single-train refineries in Nigeria and has investments in cement, sugar, fertilizer and petroleum across Africa.

The Kenyan government has not commented on the video. It was not immediately clear whether the Lamu refinery project involving Dangote is still active or whether Osoi’s remarks reflect any official policy.

Political analysts say the controversy underscores growing public debate in Kenya over foreign investment, local content and control of natural resources ahead of the next general election, expected in 2027.

Continue Reading

News

NDC’s Kano Governorship Candidate Gwarzo Missing From INEC Final List

Published

on

 

By Yusuf Danjuma Yunusa

The National Democratic Congress (NDC) governorship candidate in Kano State, Aminu Abdussalam Gwarzo, is absent from the final list of governorship candidates released by the Independent National Electoral Commission (INEC).

The three-page list, signed by INEC Secretary Rose Oriaran-Anthony, contains 17 governorship candidates and their running mates for the Kano election, but neither Gwarzo nor any other NDC candidate appears on it.

Advert

Those listed include Governor Abba Kabir Yusuf of the All Progressives Congress (APC), Abacha Muhammed Sani of the Peoples Democratic Party (PDP), and candidates from the African Democratic Congress (ADC), Labour Party (LP), Social Democratic Party (SDP), Action Alliance (AA), African Action Congress (AAC), Action Democratic Party (ADP), All Progressives Grand Alliance (APGA), Allied Peoples Movement (APM), and New Democratic Party (NDP), among others.

The document provides the names, political parties, ages, genders, and educational qualifications of the candidates and their deputy governorship candidates.

INEC did not state why the NDC candidate was omitted, and the published list does not indicate whether the omission is connected to the party’s nomination process, documentation, or another issue.

The development raises questions about the NDC’s participation in the Kano governorship election, although the list alone does not establish the reason for Gwarzo’s absence.

Continue Reading

Trending