Nigeria Protests - a wakeup call for African leaders?

Aug 07, 2024

Nigerians have taken to the streets across the country to protest against bad governance, corruption, and the skyrocketing cost of living, which has resulted in more economic hardship for the already struggling ordinary citizens.

The protests, which were largely planned by the country's youth online, began on August 1 and are expected to last ten days. They are intended to pressure the government to address the pressing issues raised by Nigerians, including record-high inflation, scrapping of fuel subsidies, endemic corruption, and insecurity.

Nigeria is one of the leading economies in Africa, boasting huge oil exports and a sizable population of over 210 million people. However, like most African nations, the country has faced decades of corruption, bad governance, and persistent security issues, resulting in underdevelopment and increasing poverty levels.

Despite being one of Africa’s largest economies, over 80 million people in Nigeria live below the poverty line, and more than 50 million are considered vulnerable. While the political class remain seemingly insensitive to the plight of their people, this is a stark reminder of the glaring inequality in the nation - with the the gap between the rich and the poor growing worlds apart. 

The political elite in Nigeria are among the highest-paid in Africa, enjoy flashy lifestyles, living in affluent suburbs, and driving luxurious SUVs. In contrast, their electorate struggles to meet their own basic needs and the country's economic hardships make life more and more unbearable.

A wakeup call for the country’s leadership

The ongoing protests in Nigeria were inspired by similar efforts in Kenya, where the youth successfully pressured the government into submitting to their demands following a historic countrywide protest on June 25 which resulted in a breach of the parliament buildings. Similar efforts by Ugandans were thwarted by the police.

One of the key issues fueling the current protest in Nigeria is corruption! Every year, billions are lost to the pockets of a few through corruption instead of funding public projects that would benefit everyone.

According to the Anti-corruption Agencies of Nigeria, in 2022 alone, the country lost $18 billion to corruption and financial crime, equivalent to 3.8% of its GDP. Although the country is among the leading oil exporters in Africa, which should result in robust economic growth, its riches are plundered by politically connected elites.

In addition to corruption, Nigerians are also facing the toughest economic time in recent history due to fiscal and monetary policies adopted by their current administration. Unlike previous regimes, President Bola Tinubu’s administration scrapped fuel subsidies that had been cushioning Nigerians from high prices at the pump.

Additionally, the government has stopped propping the Naira to let it assume its absolute market value - a move that has left the local currency in a free fall. As a result, the Naira lost more than 70% of its initial value in mid-2023 and the country continues to face a dollar shortage crisis.

Skyrocketing cost of living, increasing economic hardship

While the two critical decisions aimed to bolster investor confidence, attract more foreign investments, and boost exports, they have resulted in a record-high inflation rate of over 40%, making life unbearable and causing more suffering to the already struggling population.

The high fuel price has pushed the cost of commodities higher by over 30%, crippling the purchasing power of many citizens surviving below the minimum wage. However, President Tinubu has defended the new measures terming them painful but necessary to stabilise the country’s economy, with more than half of revenue collected channeled to external debt servicing.

Nigerians also decry bad governance, which has almost become the new normal. Many state institutions are dysfunctional, and insecurity is surging in northern parts of the country, slowing economic growth in the region. Due to policy uncertainties, the country also faces a volatile business environment.

All these issues have resulted in civil unrest in the oil-rich West African nation, with most citizens calling on the government to reinstate fuel subsidies, end corruption and stabilise the Naira.

The push for good governance, accountability in the use of public resources, and an end to corruption in Nigeria and other African countries is a wake-up call for African leaders. It underscores the urgent need for policies that consider the plight of ordinary citizens and create an environment where everyone can thrive.

With good governance and accountability in the use of public resources, African countries can realise sustainable economic growth, reduced foreign borrowing, increased infrastructural development, and reduced poverty.