Renowned economist Bismarck Rewane, Managing Director of Financial Derivatives Company Limited, has articulated the prevailing sentiment among Nigerians regarding the budgetary figures presented by President Bola Tinubu’s government.
Rewane said that Nigerians are more concerned about the practical impact on their daily lives, particularly in relation to the exorbitant prices of essential commodities.
“In the end, budgetary arithmetics, budgetary mathematics in economics is of no use to anybody except when by this time, six months’ time, if we are buying rice at N40,000 a bag rather than N60,000 a bag. If we are buying bread for N900 a big loaf instead of N1,300 which we are doing today. If we are buying garri at lower prices.
The people are not interested in whether the budget is balanced and what the debt is. How does it (the budget) affect their day-to-day livelihood? That is the key thing,” he said during an interview on Channels TV.
This statement echoes the widespread sentiment among citizens who are grappling with an alarming surge in the cost of living. Rewane stressed that the escalating economic hardship has contributed to an increase in criminal activities across the nation, particularly observable in urban centers like Lagos.
He highlighted the correlation between poverty and mental health issues, noting a rise in the number of individuals pushed to dire circumstances, resulting in desperate actions.
“You will notice that on the streets of Lagos in particular, the number of lunatics has increased and part of it is driven by poverty. Many mental health issues. People are pushed to the wall. Some of them walk across the road even in moving traffic, he said.”
President Bola Tinubu recently unveiled the 2024 appropriation bill amounting to N27 trillion, following the earlier presentation of the 2023 supplementary budget. However, there is growing concern about how the budget will be funded due to Nigeria’s current economic downturn.
Despite the government’s attempts to address economic concerns, there are persisting worries regarding the country’s financial stability, notably due to a considerable decline in revenue generation leading to heavy reliance on borrowing to sustain budgets.
Concerns about funding have heightened amidst significant borrowing approvals by the Senate, including multi-billion dollar loans for various programs proposed by President Tinubu that have intensified worries about the nation’s increasing debt profile.
Last month, the Senate endorsed borrowing plans totaling $7.8 billion and an additional €100 million, as requested by Tinubu. Also back in August, the National Assembly sanctioned President Tinubu’s request for a loan exceeding $800 million to fund the National Social Safety Network Programme.
President Tinubu, in his budget presentation before the National Assembly, outlined the primary focus areas of the proposed N27.5 trillion 2024 budget. These encompassed security, job creation, economic stability, investment optimization, human capital development, poverty alleviation, and social security initiatives.
Analyzing the budget proposal, Rewane reiterated that beyond the figures, the populace is yearning for tangible improvements resulting from the government’s economic policies. He emphasized the pressing urgency for alleviating the burden of rising prices and poverty-induced pressure faced by the masses.
“Prices are up and people are under tremendous pressure,” underscoring that the alarming rate of poverty in the country is reaching critical levels and affecting the mental health of individuals,” he said.
