10 ‘Controversial’ Policies That Marked Tinubu’s One Year In Office

Over 365 days, 33.69% inflation rate, more than 9,000 fatalities, over 4,000 abductions, and a devaluing currency, Nigeria is undergoing multifaceted challenges, many of which have been linked to economic policies by the current president of the nation, Bola Ahmed Tinubu.

The president, sworn in on May 29, 2023, during his elections had plans, made promises, but to many Nigerians, he’s yet to deliver on his core mandates. In his 80-page policy document, he highlighted an eight-point agenda with priorities in national security, economy, agriculture, power, oil and gas, transportation, and education.

However, no fewer than 31.5 million Nigerians are on the verge of food insecurity between June and August 2024, according to a new report by Cadre Harmonise. Many Nigerians cannot afford electricity as tariffs have tripled. Housing is barely affordable. Healthcare is inaccessible as Nigeria has lost about 16,000 doctors in five years due to brain drain and insecurity – banditry and kidnapping – have taken over the country.

As Tinubu marks one year in office, here are ten controversial policies that marked his year in office.

 

Removal Of Fuel Subsidy

In the early 2000s, the feasibility of the nation paying over N600 for a liter of petrol was inconceivable. When President Bola Tinubu declared there would no longer be petrol subsidy during his inaugural address at the Eagle Square, Abuja, he stated that funds for the subsidy would be diverted to further invest in infrastructure and job creation. 

“Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall, instead, re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions,” he said.

One year later, the country buys fuel at N700, in comparison to N250, which was the price before he was sworn in. One year later, many would wonder how the subsidy removal increased the employment rate in the country or public infrastructure. 

 

Tinubu Changes National Anthem 

On May 23, 2024, Nigeria’s House of Representatives passed a bill for the country to revert to “Nigeria, We Hail Thee,” the old 1978 national anthem composed by foreigners. In six days, as he marks one year in office, President Tinubu assented to the bill, reverting the nation to an anthem written by non-Nigerians.

The decision to revert to the old anthem, amidst several challenges Nigerians are currently facing, sparked outrage across the country.  

 

Signed The Electricity Bill And Hike In Electricity Tariff

In June 2023, President Tinubu passed the electricity bill, which authorises states, companies, and individuals to generate, transmit, and distribute electricity. Under this act, the state can issue licences to private individuals who can operate mini-grids and power plants within the state. Interstate and transnational electricity distribution are, however, prohibited.

Although the new law is seen as progressive as it created a market for renewable energy, while fully privatising the industry, electricity tariffs have been hiked. Currently, the Nigerian Electricity Regulatory Commission (NERC) has implemented new electricity tariffs that will allow power distribution companies (DisCos) raise electricity prices of Band A customers to N225 ($0.15) per kilowatt-hour from N68.

 

Sanctions Against The Niger Republic

In March 2024, President Tinubu approved the lifting of financial and economic sanctions on the Republic of Niger and Guinea, after eight months of threatening to use military force to oust the military government that seized power in these countries last year.

The President, as Chairman of ECOWAS, had earlier imposed the following sanctions on Niger Republic after the military ousted President Mohamed Bazoum 

• Suspension of all commercial and financial transactions between Nigeria and Niger, as well as freeze of all service transactions, including utility services and electricity to the Niger Republic.
• Freeze of assets of the Republic of Niger in ECOWAS Central Banks and freeze of assets of the Republic of Niger, state enterprises, and parastatals in commercial banks.
• Suspension of Niger from all financial assistance and transactions with all financial institutions, particularly EBID and BOAD.
• Travel bans on government officials and their family members.

Small communities on both sides of the divide suffered due to these restrictions, as border closure meant they could neither trade nor get access to electricity, leaving many communities in Niger in darkness. Most importantly, it threatened our unity in the region and could have easily escalated into insurgency.

 

Removes CBN Governor, Godwin Emefiele

One week into his tenure as president, Tinubu began his economic reforms in the financial sector by suspending Godwin Emefiele. The then-CBN governor was suspended based on his controversial policies and shoddy dealings.

Seven months into his trial, Emefiele faces investigations for alleged misappropriation of funds and misuse of office, in addition to his previous charges, which include the illegal acquisition of three Nigerian banks.

 

Suspended The 0.5% Cybersecurity Levy

On Monday, May 6, 2024, the Central Bank of Nigeria ordered banks, mobile money operators, and payment service providers to commence the deduction of the 0.5% cybersecurity levy from all electronic transfers in the country. 

Following pressure from the public, President Bola Tinubu suspended the implementation of the levy after a Federal Executive Council (FEC) meeting at the Presidential Villa.

If implemented, for every transfer of ₦1 million, customers are to pay an additional charge of ₦5,000, in addition to order bank charges.

 

Tinubu Flags Off Construction Of Lagos-Calabar Road

Conceived during the Goodluck Jonathan administration, the Lagos-Calabar coastal road was initially designed to run through 10 states with a total cost of $11.97 billion. Years after it was abandoned, the 700-kilometre Lagos-Calabar Coastal Highway was taken up by the Tinubu government.

The project handled by Hitech Construction Company Ltd, a privately-owned limited liability company, which costs over ₦15 trillion, was reportedly continued to “unlock economic opportunities and open new corridors for trade, tourism, and industries.

However, to build the 10-lane road expected to create opportunities for tourism and trade, the government took 12,000 jobs and affected more than 80 businesses as they destroyed multiple thriving businesses along Landmark Beach.

 

Bans Binance And Detains Its Executives

In March 2024, Tinubu’s administration banned activities of the cryptocurrency website, Binance, due to a reported link to the continuous depreciation of the naira.

Following the decision, Binance disclosed they’ll no longer support the deposit of naira and would convert all naira denomination balances in user wallets into stablecoin.

This ban immensely affected young Nigerians as 35% of Nigerians between the ages of 18 to 60 trade on cryptocurrency. The Federal Government went further to detain two executives, one of which escaped, while the other is still facing charges for manipulation of the inflation rate.

 

Presidential Yacht

In a country where 88.4 million people are living in extreme poverty, President Bola Tinubu, submitted a ₦2.1 Trillion 2023 supplementary appropriation budget to the National Assembly, which proposed the acquisition of a ₦5.05 billion presidential yacht.

While this was surprisingly passed by the National Assembly, only ₦5.5 billion was allocated to student loans in the supplementary budget for over 1.8 million undergraduates in Nigerian tertiary institutions.

 

Tinubu’s Exchange Rate Reforms

Years before President Tinubu became president, the CBN, under Godwin Emefiele’s leadership had clamped down on online platforms like Aboki FX for the country’s unstable currency. Due to this, the platform that displays black market currency rates in Nigeria shut down.

When President Tinubu came into office in May 2023, one of the many plans he had was the unification of different exchange rates in Nigeria to ensure the stability of the currency. 

In June 2023, the Central Bank of Nigeria adopted a floating exchange rate system, aimed at unifying all forex market segments. However, what followed was a notable devaluation of naira from $1/N461.76 at the start of his administration to $1/N1,479.69. 

Businesses closed, and cryptocurrency sites that serve as a major source of income for young Nigerians were banned, yet the exchange rate reforms embarked upon by President Tinubu are yet to lead to any stability in the Nigerian FX market. 

Although international monetary bodies have lauded some of Tinubu’s economic reforms, particularly the subsidy removal and the collapse of the exchange rate system, Nigerians, many of whom live below the poverty line of $1.9 per day, are bearing the brunt of these controversial reforms.