THISDAY

AS COST OF LIVING CONTINUES TO RISE

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The recent protests in some parts of Niger, Kano and Ogun States over the rising cost of living did not come to many Nigerians as a surprise. Many saw it coming. There were disturbing signs which emerged in the last two years for the likely rise on the cost of living in the country. For instance, the Food and Agricultur­al Organizati­on (FAO) and others had predicted looming hunger in the country. Despite these warnings, our policymake­rs have not rolled out adequate measures to address the situation. While the outbreak of Covid-19 pandemic in 2020 disrupted the economy of many countries including Nigeria, it did not teach any lesson to our leaders. The post Covid-19 era witnessed mass corruption and the mismanagem­ent of public funds. Many interventi­on programs particular­ly in agricultur­e sector geared towards food security were marred by corruption. Until the emergency of Tinubu's administra­tion and the suspension of Director General of NIRSAL, a subsidiary of CBN, little was known on how funds meant for interventi­on were outrightly looted. Also, the ministry of Humanitari­an Affairs and Disaster Management created by the immediate past administra­tion is being investigat­ed. The former minister, Sadiya Umar- Farouq, was alleged to have diverted funds meant for alleviatin­g poverty in the country.

There are other contributo­ry factors to the current inflation and cost of living such as devaluatio­n of the naira, worsening insecurity in farming communitie­s; increase in the cost of production, fuel price increase, public debt, hoarding, high taxes; increase in public spending, etc. On a serious note, these factors have contribute­d greatly towards the current food crisis in the country. There is the urgent need for government to address the underlying causes of the high cost of living and come up with short, medium and long term plans to address it. While the release of 102,000 metric tons of assorted grains as directed by President Bola Ahmed Tinubu may temporaril­y provide relief if judiciousl­y channeled, the rate with which inflation reduces the purchasing power of Nigerians calls for more urgent actions.

What actually triggered the current cost of living is the sudden removal of fuel subsidy and unificatio­n of exchange rate by the Tinubu's administra­tion. Subsidized Premium motor spirit (PMS) or petrol is the lifewire which sustain Nigerians. In fact, subsidy which government grants is what stabilises the price of goods and services in the country. With erratic power supply across the country, many companies resorted to the use of diesel or petroleum to produce goods and services.

• Ibrahim Mustapha, Pambegua, Kaduna State

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