Enormous socio-economic challenges await whoever takes over from President Major General Muhammadu Buhari (retd.) in May. Nigerians are already expressing their frustration with excuses, as they face issues such as the imminent removal of the subsidy on Premium Motor Spirit (petrol), high unemployment rates, insecurity, poverty, unstable electricity, and poor infrastructure. On May 29, 2023, President Buhari will hand over power to the individual who emerges victorious in the ongoing general elections. Citizens across the country participated in the polls over the weekend to elect a new president, with key contenders including Peter Obi of the Labour Party, Atiku Abubakar of the Peoples Democratic Party, Bola Tinubu of the All Progressives Congress, and Rabiu Kwankwaso of the New Nigeria Peoples Party. Each candidate has presented their manifestos outlining how they plan to tackle Nigeria’s myriad challenges. However, experts in various economic fields argue that the issues facing the country are far more complex than what the presidential hopefuls have proposed to address.
As the results from the elections are being collated in states and the Federal Capital Territory, Nigerians are anxiously awaiting the announcement of the new president. There is a strong expectation that the elected leader will fulfill their promises and address the pressing problems plaguing the nation. Analysts emphasize that the challenges confronting Nigeria are deeply rooted and cannot be resolved merely by the solutions offered in the candidates’ manifestos. They insist that the next government must not offer excuses, as the suffering experienced by Nigerians has reached an intolerable level. Dr. Sam Nzekwe, former President of the Association of National Accountants of Nigeria, highlighted the daunting challenges that the next president will face, including Nigeria’s current debt burden, high unemployment, a growing population, insecurity, and the power crisis.
Nzekwe stressed that the new government must prioritize addressing the power supply situation in Nigeria, noting that many businesses have struggled or failed due to the country’s inadequate electricity. He pointed out that politicians have often taken Nigerians for granted, as citizens have been hesitant to demand their rights. He remarked, “If they do their work very well, we may not need to always resort to prayers.” Nzekwe emphasized that power is essential for a vibrant economy, and without it, the industrial sector cannot thrive. He criticized the high costs of locally produced goods, attributing them to the reliance on generators for power, which forces manufacturers to incur significant expenses on diesel. He urged the incoming president and their team to provide clear solutions for improving power supply, expressing frustration over the unfulfilled promises of 24-hour electricity made by successive governments since the military regime.
Kunle Olubiyo, President of the Nigeria Consumer Protection Network and coordinator of Power Sector Perspectives, echoed concerns about the power supply. He called for a comprehensive review of the privatization of the successor distribution and generation companies of the defunct Power Holding Company of Nigeria, which took place in November 2013. Olubiyo noted that the dysfunctional outputs of these power distributors necessitate this review, especially as the 10-year moratorium on power sector privatization is set to expire this year. He warned that failure to address the issues could lead to litigation, as the privatised companies have had a decade to demonstrate their effectiveness.
Another significant challenge for the incoming president will be the removal of the petrol subsidy. Oil sector operators, international financial agencies, experts, and government officials have all called for an end to the subsidy, which costs Nigeria trillions of naira annually. The Nigerian National Petroleum Company Limited, the sole importer of petrol into the country, has repeatedly stated that the subsidy is straining its cash flow and depriving the nation of revenue that could be used for development. Recently, Mele Kyari, the Group Chief Executive Officer of NNPC Limited, revealed that the monthly subsidy expenditure has exceeded N400 billion, creating a significant financial burden for the company. He explained that the current subsidy structure results in a substantial loss for every litre of petrol imported, making it increasingly challenging to sustain this financial model without support from the Ministry of Finance.
Mohammed Shuaibu, Secretary of the Independent Petroleum Marketers Association of Nigeria, emphasized the urgency of discontinuing the petrol subsidy. He encouraged the incoming government to be decisive in halting the subsidy, asserting that most Nigerians now recognize the necessity of its removal. Dr. Nzekwe added that, in addition to the power supply and unemployment issues, the high debt burden facing Nigeria is another critical concern for the next president. He noted that Nigeria’s public debt could reach N77 trillion if the National Assembly approves President Buhari’s request to restructure the Ways and Means Advances, a loan facility used to finance government budget shortfalls. Nzekwe concluded by expressing skepticism about how the new government will manage the country’s debt, reiterating that Nigerians are not prepared to accept excuses for the challenges they face.
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