ActionAid Expresses Concern Over Rising Poverty In Nigeria

ActionAid Nigeria has warned that the country’s dire situation is far from over, with poverty rates expected to rise.

A statement signed by the Chair, Board of Directors, ActionAid Nigeria, Jummai Umar Ajijola, at the weekend after a Review of the State of the Nation, said: “ActionAid Nigeria’s Board of Directors conducted a comprehensive review of the state of the nation during its 52nd meeting and highlighted critical issues affecting the nation.

“The Board of Directors recognises that Nigeria is going through one of its most difficult periods in recent history. Between December 2023 and March 2024, there was soaring inflation, a fluctuating foreign exchange regime, escalating security challenges, electricity shutdowns and power failures, and widespread corruption at all levels of government, culminating in a dire economic state and cost-of-living crisis. Nigeria’s current situation appears grim, and poverty levels are expected to rise.

Nigeria’s current situation appears bleak, and poverty rates are expected to rise dramatically. It must also reconsider subsidy policies for essential commodities such as petrol and electricity in order to reduce the negative impact on living costs and ensure equitable distribution of resources. Now is the time to conduct a thorough review of budget allocations to ensure adequate funding for critical sectors such as health, agriculture, security, and education, while reducing debt servicing costs and expanding and strengthening social welfare programmes.

“Given the Central Bank of Nigeria’s (CBN) Monetary Policy Committee’s (MPC) decision to raise interest rates to 24.75%, we urge the Federal Government and CBN to take immediate action to mitigate the negative effects of the increased interest rates on small and medium-sized enterprises (SMEs), particularly by providing alternative funding sources or financial support schemes for SMEs to access affordable loans.

“In light of the alarming trend of mass kidnappings, which primarily target students, internally displaced persons (IDPs), ordinary citizens, and health workers, with ransom demands in the millions of naira, we demand that the federal and state governments allocate significant resources and manpower to strengthen security forces and intelligence capabilities. We urge security agencies to mobilise all available resources, improve coordination among different levels of law enforcement, conduct thorough investigations to apprehend all individuals involved in kidnapping operations, and prioritise the safety and security of communities, schools, roads, and IDP camps through increased surveillance and patrols.

“The Board of Directors strongly condemns the alarming allegations of budget padding and mismanagement of public funds as reported by the Senate. The allegations of corrupt practices within the Ministry of Humanitarian Affairs, involving the two immediate former Ministers, are equally appalling. We urge all CSOs and Nigerians to join us in reminding and calling out lawmakers and public officials who prioritise the welfare and interests of the Nigerian people over their personal agendas. Any attempts to circumvent this principle or divert public funds for personal gain require prompt and resolute intervention by the Economic and Financial Crimes Commission (EFCC).

“We applaud the EFCC’s recent anti-corruption efforts, but we are deeply concerned about the reported actions of some lawmakers and government appointees. As a result, we request that the EFCC and ICPC expedite their investigations into these matters, ensuring that all individuals found culpable are held fully accountable to the law. To send a clear message that corruption will not be tolerated in our society, the judiciary should expedite legal proceedings and issue fair and impartial judgements in cases of corruption and abuse of office.

The ActionAid Nigeria Board praised the government’s efforts to ensure the independence of the judiciary, including the appointment, confirmation, and swearing-in of 11 new Supreme Court justices. They also praised the new salary structure for judicial officers, which aims to enhance the judiciary’s independence and integrity.

It also applauded the Federal Government for the recent appreciation of the Naira, noting that the significant appreciation of the Nigerian Naira against the US dollar reflects the success of collaborative efforts and strategic interventions by the Central Bank of Nigeria (CBN) to stabilise and strengthen our national currency, calling for continued support and adherence to sound monetary policies, transparency, and accountability in the financial sector to sustain it.

It stated that the recurring breakdowns of the national power grid, coupled with the recent approval by the Nigerian Electricity Regulatory Commission (NERC) to increase electricity tariffs for customers are unacceptable, noting that the elimination of electricity subsidies will significantly compound the hardships endured by ordinary Nigerians, small and medium-sized enterprises (SMEs), and investors, and it demands that the Federal Government conduct comprehensive reforms.

It stated: “We are also demanding a thorough review of energy subsidy policies to ensure efficiency and equitable distribution of resources, taking into account the impact on low-income households and the broader economy.”

It praised President Tinubu’s administration’s willingness to implement the Orosanye report and white paper, but insisted that it follow through on the recommendations in the report and white paper, emphasising that: “This is particularly critical given the President’s overload with 47 Ministers and hundreds of aides, all benefiting from the nation’s resources. The Federal Government must commit to reducing executive profligacy, while citizens should hold their representatives accountable for financial recklessness.

The Board of Directors strongly condemns the ambush and murder of 17 military personnel in Okouma, Delta State, and calls for immediate and thorough action to bring the perpetrators to justice. It urged Nigerian security forces to step up their efforts to apprehend those responsible and ensure that they face the full force of the law, but added that in doing so, “we enjoin the military to operate within the ambits of the law and respect the rights of the people.” Community leaders and residents are encouraged to help with these efforts by sharing any relevant information they may have and promoting peace and dialogue in their communities.”

It urged civil society organisations (CSOs) to raise their voices and advocate for greater accountability, transparency, and social justice in response to the country’s pressing issues.