President Bola Tinubu said on Monday that he does not believe in price control and that his government would not embark on such a check on the cost-of-living crisis in the country.
Mr Tinubu spoke during his first Presidential Media Chat on Monday.
“I don’t believe in price control,” the Nigerian leader said.
When asked what his government would do to check the high cost of goods and services, Mr Tinubu said: “We just continue to supply the market, we work hard to supply the market.”
Nigeria is witnessing its worst cost-of-living crisis in a generation, with food prices increasing by over 200 per cent since Mr Tinubu assumed office.
Government policies, such as the removal of petrol subsidies and the floating of the naira, made the crisis worse.
Background
In recent months, the prices of major staple foods, including rice, beans, bread, and poultry products, have maintained an upward trend across the country.
The rising cost became more severe and troubling following the implementation of some of Mr Tinubu’s administration’s economic policies, such as the controversial removal of petrol subsidy and the floating of the naira policies.
The continuous increase in price amidst rising inflation figures has, on several occasions, forced many Nigerians to stage a nationwide protest tagged #EndbadgovernanceinNigeria to express their frustration.
Similarly, organised labour unions in the country have, on several occasions, taken to the streets to vent their frustrations, demanding an increase in wages to complement lingering inflationary pressure.
To address these concerns, the federal government has rolled out measures in the past 18 months to ameliorate the hardship in the country. Among these measures are the recent upward review of the minimum wage in the country, subsidised food items and input supply to farmers to boost food production in the country.
In September, Nigeria’s Minister of Agriculture and Food Security, Abubakar Kyari, flagged off the federal government subsidised rice initiative in Abuja, noting that only Nigerians with duly registered National Identification Numbers (NIN) will be allowed to purchase the subsidised rice.
He explained that the rice will be sold at a flat rate of ₦40,000 per 50kg bag, noting that the move is a crucial intervention to mitigate the effects of high food prices.
However, the impacts of these interventions are still negligible as food prices remain high. Despite injecting basic food items into Nigerian markets across states as part of efforts to force down the rising cost of foodstuffs in the country, the initiative has not yielded much success.
As many Nigerians are set to celebrate the Yuletide, the skyrocketing prices of food items have impacted the purchasing power of citizens across the country.
Efforts to distribute relief food items/packages to vulnerable people by some groups have also led to several cases of stampedes and deaths of citizens across the country, including the nation’s capital city, Abuja.
President Bola Tinubu said on Monday that his government is committed to fighting corruption, and one way it is doing that is by implementing mechanisms to prevent it from happening.
Mr Tinubu mentioned the student loan scheme, an increase in the minimum wage, and the removal of petrol subsidies as efforts to prevent corruption.
The president spoke in his first Presidential Media Chat in Lagos.
“Pay them good and living wages,” President Tinubu said, referencing the recent increase in the minimum wage from N35,000 to N70,000.
“To me, that is anti-corruption. If I can add more, giving more money to the states and local governments level, we are addressing corruption directly.”
President Tinubu mentioned that he has been transparent with his earnings by adopting the practice of publishing monthly revenue figures.
Meeting people needs will reduce corruption
President Tinubu defended his controversial removal of the fuel subsidy, describing it as a necessary step to reduce corruption and stabilize the economy.
“Meet the people’s needs, help the people with their education of their children,” President Tinubu said, noting that over 60 per cent of Nigerians are now benefiting from tuition fee allowances through the student loan scheme.
The president argued that fuel subsidies had long enabled smuggling and rent-seeking, with Nigeria inadvertently subsidising fuel consumption in neighbouring countries.
President said that by removing the subsidies, the government has closed loopholes that were draining the nation’s resources.
“The Nigerian economy had remained anaemic for decades because of many misalignments,” he explained.
“We made the painful decision to remove fuel subsidies and abolish multiple foreign exchange systems, which blocked the greed and profits of smugglers and rent-seekers.”
Though President Tinubu said fuel subsidy removal was a necessity, many Nigerians are still grappling with reality of high prices of food, transportation and other goods and services.
Also, labour unions, civil society organisations, and opposition parties have criticised the policy by demanding a reduction in pump prices, a review of electricity tariffs, and stronger action against corruption in the oil sector.
PREMIUM TIMES reported August protests and also strikes because of frustration over the economic issues caused by the administration policy.
In response to the criticism, President Tinubu said his administration has introduced palliative measures to mitigate the impact of the subsidy removal.
“The society is moving forward by making many gains since its removal through palliative measures,” he said.
EFCC’s recovery of estate
The president also praised the Economic and Financial Crimes Commission (EFCC) for its recovery of an Abuja estate with more than 700 houses acquired with proceeds of corruption.
He said his administration’s resolve to block funds leakages in the public sector.
“Block all loopholes where anybody can just get what they want,” he said.
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