Thousands join Nigeria’s hunger protests

The Nigeria Labour Congress (NLC) trade union umbrella on Tuesday morning began its two-day protest against "hunger and insecurity" across the country.

The protest first kicked off in Nigeria’s commercial nerve of Lagos around 9 am before other locations followed moments later.

Many Nigerians are finding it difficult to eat once a day meal. This development has had devastating effects on school age children and the elderly.

In a letter shared to the public before the protest started, the NLC said they want an end to hunger and insecurity in Nigeria.

“Open all food storage silos and ensure equitable distribution across the country,” one of the demands read.

They also called on the government to abandon World Bank and International Monetary Fund policies which they believe are adding to hardship in Nigeria.

Before the protest, Nigeria's Finance Minister Wale Edun said President Bola Tinubu is "listening very carefully and acting in order to meet the needs of Nigerians".

On Monday, the minister announced the resumption of direct cash transfers to help over 12 million vulnerable households with the spike in living costs.

Edun asked Nigerians for patience as the government implements economic reforms.

"President Tinubu is putting the country on the path to economic restoration and he is asking for patience and asks for forbearance at this particular time and is doing everything he can to assuage these pains and shorten the period for which they last," Edun said.

Nigeria is currently experiencing its worst economic crisis in a generation, leading to widespread hardship and anger.

A litre of petrol costs more than three times what it did nine months ago, while the price of the staple food, rice, has more than doubled in the past year.

These two figures highlight the difficulties that many Nigerians are facing as wages have not kept up with the rising cost of living.

Like many nations, Nigeria has experienced economic shocks from beyond its shores in recent years, but there are also issues specific to the country, partly driven by the reforms introduced by inubu when he took office last May.

 

How bad is the economy?

Overall, annual inflation, which is the average rate at which prices go up, is now close to 30 per cent - the highest figure in nearly three decades. The cost of food has risen even more - by 35 per cent.

However, the monthly minimum wage, set by the government and which all employers are supposed to observe, has not changed since 2019, when it was put at N30,000 - this is worth just $19   at current exchange rates.

Many are going hungry, rationing what food they have or looking for cheaper alternatives.

One clip shows a woman cutting a fish into nine pieces rather than the average four to five. She is heard saying her goal is to ensure her family can at least eat some fish twice a week.

 

What is causing Nigeria's economic crisis?

Inflation has soared in many countries, as fuel and other costs spiked as a result of the war in Ukraine.

But Tinubu's efforts to remodel the economy have also added to the burden.

On the day he was sworn in nine months ago, the new president announced that the long-standing fuel subsidy would be ending.

This had kept petrol prices low for citizens of this oil-producing nation, but it was also a huge drain on public finances. In the first half of 2023, it accounted for 15 per cent of the budget - more than the government spent on health or education. Tinubu argued that this could be better used elsewhere.

However, the subsequent huge jump in the price of petrol has caused other prices to rise as companies pass on transportation and energy costs to the consumer.

One other factor that is pushing up inflation is an issue that the president inherited from his predecessor, Muhammadu Buhari, according to financial analyst Tilewa Adebajo.

He disclosed that the previous government had asked the country's central bank for short-term loans to cover spending amounting to $19 billion.

The bank printed the money, which helped fuel inflation, Adebajo said.

 

What has happened to the naira?

Tinubu also ended the policy of pegging the price of the currency, the naira, to the US dollar rather than leaving it up to the market to determine on the basis of supply and demand. The central bank was spending a lot of money maintaining the level.

But scrapping the peg has led the naira's value to plunge by more than two-thirds, briefly hitting an all-time low last week.

Last May, N10,000 would buy $22, now it will only fetch around $6.40.

As the naira is worth less, the price of all imported products has gone up.

 

When will things get better?

While the president is unlikely to reverse his decisions on the fuel subsidy and the naira, which he argues will pay off in the long run by making Nigeria's economy stronger, the government has introduced some measures to ease the suffering.

Nigeria's Vice-President Kashim Shettima announced the establishment of a board charged with controlling and regulating food prices. The government also ordered the national grain reserve to distribute 42,000 tonnes of grains, including maize and millet.

This is not the first time the government has said it is distributing aid to poor and vulnerable Nigerians, but labour unions have often criticised the government's method of food distribution, saying much of it does not reach poor families.

The government has also said it is working with rice producers to get more of it into markets and customs officials have been instructed to cheaply sell off bags of the grain that they have seized. In a sign of how bad things are, on Friday this led to a crush in the biggest city, Lagos, which killed seven people, local media report. These hand-outs have now been halted.

The rice was seized under the previous government, which banned imports of rice to encourage local farmers to grow more. That ban was lifted last year in an attempt to bring down the cost but because of the fall in the value of the naira, that has not worked.

Around 15 million poorer households are also receiving a cash transfer of N25,000 ($16) a month, but these days that doesn't go very far.