An Open Letter to President Tinubu: Any hope for Nigerians in 2025?

I write to you with utmost respect and concern for the well-being of Nigerians. As you navigate the complexities of leading our great nation, I pray that Allah grants you the wisdom to make Nigeria great again. As the year 2024 draws to a close, the outlook for the new year appears dismal for millions of […]

I write to you with utmost respect and concern for the well-being of Nigerians. As you navigate the complexities of leading our great nation, I pray that Allah grants you the wisdom to make Nigeria great again.

As the year 2024 draws to a close, the outlook for the new year appears dismal for millions of Nigerians. Since your inauguration speech on May 29, 2023, the citizens’ expectations for better days have been consistently dashed, leaving many feeling hopeless about the future.

The past year and a half have been marked by unfulfilled promises, rising inflation, food insecurity, and escalating violence. The country’s economic woes, coupled with the government’s struggles to address the security challenges, have taken a toll on the citizens’ morale.

As the clock ticks down to the start of a new year, Nigerians are left wondering if 2025 will bring any respite from the current hardships.

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The sense of desperation is palpable, and the government faces mounting pressure to deliver into its promises and restore hope to a disillusioned citizenry. The year 2024 has been one of the most challenging for Nigerians, with the uncertainty and hardship that have become unbearable, leaving citizens struggling to survive. The Renewed Hope that your administration promised is increasingly turning into Renewed Frustration.

Nigeria’s current state is alarming, with a disturbing score of 28.8% on the 2024 Global Hunger Index, ranking the country 110th out of 127 countries. This score indicates a serious level of hunger, driven by high inflation rates, food inflation, and poor macroeconomic conditions. The country’s insecurity woes are further complicated by numerous security challenges, prompting military deployment in 30 out of 36 states. The World Bank reports that poverty is high and rising in Nigeria, with employment alone not being enough to lift people out of poverty. It’s essential for your administration to prioritize policies that promote economic growth, job creation, and social welfare. Your administration needs to prioritize welfare to alleviate the suffering of the Nigerian people.

I urge you to take bold steps to address these challenges. Engage with local industries to address food inflation and hold those responsible for hoarding foodstuffs accountable. The future of Nigeria depends on the actions you take today. Furthermore, I’m concerned about the administration’s push for a tax reform bill despite citizens’ reservations. The National Economic Council (NEC), comprising the 36 state governors led by the Vice President, has expressed reservations about the tax reform bill, emphasizing the need for adequate consultations with stakeholders. The experts warn that these policies may have negative implications for the country, including inflation.

However, the President has swiftly rejected the NEC’s recommendation to withdraw the contentious tax reform bills, stressing that these bills are crucial in supporting his administration’s objectives and bolstering the country’s fiscal institutions. According to the President, the tax bill aims to strengthen the economy and improve revenue generation.

Particularly, the administration’s push for the passage of this bill is linked to the World Bank’s approval of two loans worth $2.25 billion for Nigeria in June 2024. One condition of these loans is that Nigeria must increase its VAT rate to at least 12.5% by 2026.

Experts warn that these policies may have negative implications, including inflation. The repayment period for these loans, set for 2030, is also a concern, as Nigeria will still be grappling with the shocks of the VAT increase. Many policymakers and experts advise the government to postpone approving this tax reform bill and engage in further consultations.

Ultimately, the government must carefully weigh the potential consequences of these policies and consider the benefits against the potential costs. The fate of Nigeria’s economy and the well-being of its citizens hang in the balance.

I implore you to consider the potential consequences of these policies and weigh the benefits against the potential costs. The fate of Nigeria’s economy and the well-being of its citizens hang in the balance. Will you rise to the challenge and provide the leadership that Nigerians desperately need? The clock is ticking.

The proposed 2025 budget boasts a significant 74.18% increase, reaching N47.9 trillion in nominal terms, which signals a bold fiscal strategy aimed at tackling persistent infrastructure gaps and development challenges. However, when viewed in dollar terms, the budget contracted by 23.22%, dropping from $36.7 billion in 2024 to $28.18 billion in 2025.

This reduction in real value limits the potential impact of the budget on economic growth and the well-being of the population. Despite this, the nominal increase in the 2025 budget reflects an ambitious policy shift.

The most concerning aspect of the budget proposal is its ambitious revenue projection of N34.8 trillion. The proposed budget of N47.90 trillion allocates a staggering N15.81 trillion for debt servicing, leaving a significant deficit of N13.0 trillion. Defence/Security: N4.91 trillion, Infrastructure: N4.06 trillion, Health N2.4 trillion and Education: N3.5 trillion.

These figures highlight the government’s priorities, but the significant deficit and substantial debt servicing allocations raise concerns about the budget’s sustainability and potential impact on the economy.

Nevertheless, its success hinges on several key factors, including effective revenue generation, debt management, project execution, and addressing inflation and exchange rate volatility. If these challenges are not addressed, the budget’s ability to deliver meaningful growth could be limited.

May Allah grant you the strength and resilience to overcome the daunting challenges facing our nation. May He instil in you a deep sense of justice, guiding you to lead with fairness and wisdom for the development and prosperity of our people and country. We pray for Allah’s protection over our nation, its leaders, and its citizens. May He bless our country, forgive our transgressions, and have mercy on us. May He thwart the plans of those who harbour malicious intentions against leaders and our great nation, Nigeria. Just as You have protected us in the past, we seek Your continued protection and guidance.

May Allah unite our nation around the principles of justice, peace, love, and faith. May He fill our hearts with love and appreciation for the diversity that makes our nation so beautiful. In our weakness, speechlessness, and helplessness, we turn to Allah, to protect us and our leaders from error and guide them to all that is good for us. May He guide them to work tirelessly for the unity, peace, progress, and stability of Nigeria.

Happy New Year on advance.

 

Dukawa, a public affairs commentator, wrote via [email protected]