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Civil Unrest Over Economic Hardship Grips Nigeria, Government Responds

ABUJA – Amidst recent protests in Kano and Niger states over escalating economic hardships, civil society organisations (CSOs) and stakeholders warn President Bola Ahmed Tinubu against disregarding mounting public discontent.

In an interactive session with the Senate Committees on Finance, Appropriations, Banking, Insurance, and other Financial Institutions, top government officials outlined measures to stabilise the economy, addressing spiralling inflation and a volatile foreign exchange regime that have plunged millions of Nigerians into poverty.

The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, along with Finance Minister Wale Edun, Budget and National Planning Minister Senator Atiku Bagudu, and Agriculture and Food Security Minister Senator Abubakar Kyari, elaborated on the government’s strategy at the National Assembly Complex, Abuja.

Cardoso attributed the naira’s weakness to Nigerians’ insatiable demand for dollars and foreign goods, emphasising that without moderation in such demands, the CBN cannot halt the naira’s free fall. He urged Nigerians, especially the elite, to reduce their appetite for foreign goods and patronage of foreign schools and hospitals.

He outlined measures implemented by the apex bank to strengthen the economy, noting an inflow of approximately $1 billion. However, he highlighted increased demand pressures in the foreign exchange market, contributing to the naira’s continuous decline.

Cardoso detailed a comprehensive strategy to enhance liquidity in the foreign exchange markets, including unifying FX market segments and enforcing limits on net open positions. He emphasised the need for sustained efforts to moderate demand for foreign exchange.

On inflation, Cardoso projected a reduction to 21.4% in 2024, attributing the food crisis to insecurity and natural causes. He highlighted efforts by the government’s emergency committee on food security to address rising food inflation.

Regarding monetary policy, Cardoso announced the discontinuation of ways and means advances to the Federal Government, signalling adherence to the CBN Act (2007). He also underscored efforts to tighten monetary policy to curb inflationary pressures.

Ministers Edun, Bagudu, and Kyari echoed Cardoso’s sentiments, emphasising the government’s commitment to alleviate Nigerians’ suffering through social security strategies and measures to stabilise the economy.

Meanwhile, opposition parties and stakeholders warn against dismissing public protests, urging urgent action to address hunger and hardship. They criticise the ruling party’s attempts to politicise the protests and emphasise the need for concrete solutions to alleviate suffering.

As Nigeria grapples with economic challenges, stakeholders call for a multi-faceted approach combining short-term relief measures with long-term solutions to improve food security and resilience.

The government faces mounting pressure to tackle inflation, food shortages, and insecurity as Nigerians demand swift action to alleviate their plight. Amidst growing discontent, calls for effective governance and accountability resonate across the nation.

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