5 Biggest Tinubu’s Policy That Has Affected Nigerians So Far

Since taking office, President Bola Ahmed Tinubu has made sweeping policy changes aimed at reshaping Nigeria’s economy and governance.......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>

While some of these policies were intended to improve the country’s long-term prospects, they have also sparked significant debate, economic shifts, and daily struggles for many Nigerians. Here are some of the most impactful policies under Tinubu so far and how they have affected the people.

Removal of fuel subsidy

One of Tinubu’s first major decisions was to remove the longstanding fuel subsidy, a move he announced in his inauguration speech in May 2023. The government argued that the subsidy was draining the nation’s finances, benefiting a few elites, and needed to be removed to free up funds for infrastructure and development.

However, for everyday Nigerians, the impact was immediate and painful. Petrol prices tripled overnight, sending transportation costs soaring and making goods and services more expensive. Inflation spiked, and many businesses, reliant on fuel for their operations, struggled to keep up with rising costs.

While the government has promised to reinvest the saved funds into critical sectors, many Nigerians continue to feel the financial squeeze.

Floating the naira

In June 2023, Tinubu’s administration introduced a foreign exchange reform by floating the naira. This meant that the currency’s value would be determined by market forces instead of being tightly controlled by the Central Bank. The move was meant to attract foreign investors and stabilize the economy.

Instead, the naira lost a significant portion of its value, making imported goods, including food, medicine, and fuel much more expensive. Many Nigerians saw their savings lose value almost overnight.

Businesses reliant on imports struggled, and inflation climbed further. While some experts believe this policy could bring long-term economic benefits, its short-term effects have been extremely challenging for ordinary citizens.

Student loan scheme

To help young Nigerians access higher education, Tinubu introduced the Student Loan (Access to Higher Education) Act in July 2024. The program aims to provide interest-free loans to students from low-income families, covering tuition fees and other educational expenses.

While this policy has been praised for promoting equal access to education, there are concerns about how it will be implemented. Questions remain about repayment terms, eligibility criteria, and whether the scheme will truly reach the students who need it most.

If executed effectively, it could transform Nigeria’s education sector, but if poorly managed, it could leave many students burdened with debt and limited job prospects.

Electricity tariff adjustments

Nigeria has long struggled with an unreliable power supply, and the Tinubu administration proposed increasing electricity tariffs to attract investment and improve service delivery.

While this move aimed to make the power sector more financially viable, many Nigerians were frustrated by the idea of paying more without seeing significant improvements in supply.

The initial plan was to hike electricity rates by 65%, but following public outcry, the government revised the figures. Despite these adjustments, many households and businesses are now paying more for power, yet still experiencing frequent blackouts. This has led to widespread criticism, with many questioning whether the increased tariffs will truly lead to a more stable and reliable electricity supply.

New Minimum Wage

In July 2024, Tinubu signed a bill increasing Nigeria’s minimum wage from ₦30,000 to ₦70,000. This was a welcome development for many workers struggling with rising living costs. Labor unions praised the move, arguing that it would help Nigerian workers cope with inflation.

However, some economists warned that without corresponding economic growth, the wage increase could further fuel inflation. Many businesses, especially small and medium-sized enterprises, worry about how they will afford to pay higher wages without raising prices. The long-term effects of this policy remain uncertain, but in the short term, it has provided much-needed relief to workers facing financial hardship.