By Joseph Dimegbechie
With the immense feelings of discontentment felt by many citizens of our country, Nigeria, sparking the recent wave of protests, let the evident accomplishments of the current government not be forgotten. Every presidential candidate makes grandiose promises in his manifesto, but President Tinubu and his administration have made discernible accomplishments in the country’s economy and citizens’ welfare. The facts speak for themselves and Nigeria being a tribe of the fair-minded, will look at the facts and judge for themselves.Nigeria’s housing sector faces significant challenges, with a shortfall of approximately 30 million units. President Bola Ahmed Tinubu’s Renewed Hope Cities and Estates initiatives are designed to rejuvenate this struggling sector and offer affordable housing to millions. These initiatives prioritize self-sustainability and aim to construct 100,000 homes throughout the 36 states and the FCT. In Karsana, Abuja, the Renewed Hope Cities project is on track to complete 3,112 homes. A key aspect of these projects is their affordability, ensuring that at least 20% of all constructed units are priced within the reach of low to medium-income earners. Additionally, loan options like rent-to-own schemes and mortgages with reasonable interest rates are being introduced.
The benefits of government-provided affordable housing in these economically challenging times are manifold. Economic downturns often result in job losses and a subsequent inability to afford rent or mortgages. By offering more affordable housing, the government creates a safety net that prevents homelessness and its related difficulties. With lower housing and rent expenses, Nigerian families can allocate more funds to necessities such as food, healthcare, and education, thereby reducing the impact of the struggling economy faced by this administration. Moreover, when individuals are not overburdened by housing costs, they have greater disposable income for purchasing goods and services, which in turn stimulates economic activity.The Tinubu Administration’s significant investment in affordable housing is set to directly infuse capital into the economy by generating construction jobs and bolstering associated sectors.
Affordable housing access also facilitates the mobility of people seeking employment in different cities, potentially addressing labour shortages, enhancing productivity, and fostering opportunities that can reduce poverty.In summary, the provision of affordable housing during times of economic downturn serves as a potent mechanism for alleviating hardship, invigorating the economy, and fostering a society that is both more equitable and resilient.Related to the issue of housing is what the administration is doing about making food available to millions of Nigerians. Rising food prices due to global inflation has hit several countries including Nigeria. The hardship caused by escalating food prices has been heavy on Nigerians as it is a major point in the agenda of the ongoing protests. To combat this, the federal government has implemented a 150-day suspension on tariffs and import duties on staple food items such as maize, sorghum, rice and wheat. By reducing taxes on these items, prices will come down to ensure that basic food items are available for all Nigerians. Job creation is a big part of President Bola Ahmed Tinubu’s plans for Nigeria as 250 million tonnes of maize and wheat will be imported soon to sustain the growth of small to medium scale local millers and food processors.With the economic dip, the federal government is making efforts to revive and support key sectors. Concentrating on MSMEs – Micro, Small and Medium enterprises and the manufacturing sectors, 150 billion Naira split evenly between the two sectors has been allocated according to the ministry of industry, trade, and investment.
A recent disbursement towards nano businesses has been made with committed beneficiaries.Even those without expertise recognize the potential advantages of government subsidies designed to reduce food costs amidst an economic slump.For families with low incomes, job losses or diminished earnings can rapidly result in food insecurity. Subsidies, whether they are direct price cuts or the elimination of import duties on foreign food as the government has declared, directly decrease food expenses. For millions of Nigerian families in difficulty, the assurance of support for a basic necessity like food can alleviate the stress and anxiety caused by economic challenges.From a broader economic standpoint, funds expended on food are reinvested into the economy, bolstering small businesses, neighbourhood stores, agricultural workers, and food manufacturers. This can create a domino effect, boosting employment and mitigating poverty. Initial spending by subsidy recipients can stimulate further economic activity, as businesses and their employees reinvest that income, thus magnifying the subsidy’s impact.In economic downturns like the one Nigeria is currently facing, consumer spending decreases, exacerbating the recession. Food subsidies support demand in this crucial sector, countering the recessionary trend.Malnutrition and diet-related diseases burden healthcare systems. Enhanced food security can result in long-term healthcare savings.Agricultural producers are often severely affected by economic downturns. Food subsidies ensure a consistent market for their products, averting farm shutdowns and job losses in rural areas.
The food industry, from processing to retail, is a significant employer. Subsidies are vital in preserving these jobs, aiding in the overall economic stability.The Tinubu administration is deliberately using food subsidies as a strategic measure to ease hardship and bolster the economy, aiming to overcome the economic downturn inherited from its predecessors.
Joseph Dimegbechie a public analyst lives Enugu